Job profiles have become more environmentally friendly. Employment shares in occupations with environmental jobs have grown in the study period from 2012 to 2022. This is confirmed by a study by the RWI – Leibniz Institute for Economic Research and the Institute for Employment Research (IAB). The ecological transformation is changing the German labour market moderately to significantly, as jobs with environmentally harmful activities have also declined.

Düsseldorf, October 2nd, 2024 In a study, the RWI – Leibniz Institute for Economic Research and the Institute for Employment Research (IAB) found that there was a significant shift in the labour market between 2012 and 2022, of around 11 percent. In the German economy, there has been a shift in activities towards more environmentally friendly activities. Activities classified as environmentally harmful, on the other hand, are decreasing.

Two processes were analysed. Changes in the job profiles within occupations, referred to as the „within-effect“. The investigations into shifts in employment shares between different occupations were labelled „between-effect“. In both cases, the study shows that the change in activities within occupations is just as important for the ecological transformation as the shift in employment shares between occupations.

Changes in job profiles with a previously high proportion of environmentally harmful activities have become more ecological. Increases in employment were observed in environmentally friendly activities. There has been an equally moderate decrease in environmentally harmful activities.

However, direct changes from environmentally harmful to environmentally friendly activities are rare. The results of the study clearly show that the shift towards more green and more technology is worsening the employment prospects of foreign and low-skilled workers.

„The ecological and technological transformation of the labour market is progressing and changing the demand on the labour market,“ says Christina Vonnahme, head of the new RWI-IAB junior research group “Ecological Transformation, Labour Market, Education and Training”. „Our study results show that the ecological transformation is accompanied by a significant change in job profiles. This means that workers do not necessarily have to give up their jobs due to the ecological transformation. However, adapting to new professional qualifications requires efforts from employees and companies. Otherwise, there is a risk of considerable welfare losses for those affected,“ warns labour market expert Christina Vonnahme. „Suitable qualification and retraining measures therefore play a decisive role in the ecological transformation of the labour market.“

Originalpublication:

(https://www.rwi-essen.de/fileadmin/user_upload/RWI/Publikationen/Ruhr_Economic_Papers/REP_24_1099.pdf)

Further Information

(https://www.rwi-essen.de/publikationen/wissenschaftlich/ruhr-economic-papers/detail/disentangling-the-greening-of-the-labour-market-7041)

ImageSource Janno Nivergall Pixabay