Author: Shinyoung Jeon
we are living in a challenging time – both economically and environmentally
The COVID-19 crisis is having devastating impacts on labour markets. OECD estimates that by the middle of 2020 unemployment in OECD economies has more than doubled to around 11% compared to 2019, well above the level seen during the 2009 global financial crisis (OECD, 2020 - 1). By contrast, the COVID-19 crisis and the lockdowns have dramatically decreased energy demand and CO2 emissions, which are expected to decline almost 8% compared to 2019 (IEA, 2020). While countries will recover from the COVID-19 crisis, we will still be faced with some long-term, fundamental challenges facing all of our economies – and one of the most fundamental of all of these is climate change. Even if the impact of the crisis on the climate has been positive as a consequence of the lockdowns and low economic activities, unless there are structural changes, emissions will continue to go up again once the crisis is over. In short, we need to take the opportunity of this crisis to not just address today’s challenges, but also plan for the future.
In response to crises: economically and ecologically viable growth
When many governments were searching for way out due to the aftermath of the 2009 financial crisis, the ILO produced the Skills for Green Jobs report (Strietska-Ilina et al., 2011). This report argues that green jobs and skills have major potential to strengthen economies and create jobs, particularly compared with conventional industries, and green jobs require skilled workers, so reskilling and upskilling of adults becomes crucial, and therefore VET and adult learning systems will play an important role.
The payoffs to investment in green sectors and associated skills and education can be significant. For example, the labour intensity of renewable power generation is far higher than fossil fuel power generation. A spending increase of USD 1 million in the renewable energy sector creates over 7 full time jobs, compared to fewer than 3 jobs in the fossil fuel industry; similar spending in energy efficiency supports almost 8 jobs (Garrett-Peltier, 2017). According to a 2018 estimate, taking green growth action in the energy sector to limit global warming to 2 degrees Celsius by the end of the century could create up to 24 million jobs globally (ILO, 2018).
The stimulus packages currently being drafted and rolled out by governments around the world offer a major opportunity to kick-start this process. The Skills for Green Jobs report was prepared in direct response to the 2009 crisis, when governments channelled significant portions of stimulus packages towards measures intended to reduce greenhouse gas (GHG) emissions, including deploying renewable energy. By the end of 2009, approximately 16% of all fiscal measures, representing about 521 billion dollars, were allocated to green stimulus (IILS, 2011). Angel Gurría, the Secretary General of the OECD also stated at that time (OECD, 2009),
“…governments throughout the world are implementing the largest global fiscal stimulus in history.
These stimulus packages are the greatest opportunity we have ever had for “greening” our economies.”
Yet over a decade later, the threat of climate change is even more pressing as little progress has been made and carbon emissions continue to rise. Green growth is more necessary than ever before to ensure that we can tackle growing emissions in a way that is both economically and environmentally sustainable.
VET and adult learning is the key for green transition
In recognition of this challenge, the European Union put into place in December 2019 funding and systems to support all EU countries in their efforts to decarbonise. The European Green Deal is supporting countries to achieve a climate neutral European Union by 2050 (European Commission, 2019). In particular, the Deal recognises that pro-active re-skilling and upskilling are necessary to reap the benefits of the ecological transition, including the need to help the workforce acquire the skills they need to move from “sectors in decline” to “growth sectors”. Green industries increasingly require high-skilled workers, which is in line with the trend in the labour market. This shift in skills demand towards higher levels of technical and vocational skills is leading to an increasing need to upskill and obtain higher level qualifications.
Despite increases in investment, one of major limiting factors to transitioning to green growth over the past decade has been a lack of skills and training. It is important that governments do not make similar mistakes to the ones made in their response to the 2009 financial crisis. In particular, there is general agreement that governments largely failed to capitalise on the carbon-cutting potential of their spending, partly because there was a lack of “shovel-ready” initiatives.
The same lack of readiness applies to skills, as VET and adult learning systems at that time were not able to sufficiently respond to the quickly increasing demand for green jobs and prepare the workforce with appropriate skills. For example, there were very few dual apprenticeship programmes designed to cater specifically for the development of skills related to renewable energy.
This time should be different. As large numbers of laid-off workers look to re-enter the labour market, now is the opportunity for workers to reskill and upskill into green jobs and contribute to green growth. The transition to a green economy requires change across all sectors and occupations, and here VET and adult education must play a fundamental role.The importance of that role needs to be recognised by policy makers as they look to channel funding into economic recovery. Whether this means new skills for new jobs, such as renewable energy, or upskilling or reskilling in existing jobs, such as a move to organic farming and waste management, adult education and skills are fundamental to the future of our industries, our workers, and our economies.
Denmark, for example, leveraged the green transition by preparing workers in the Danish shipbuilding sector through VET to transition to the offshore wind sector. The shipbuilding sector was facing difficult times due to emerging global competitors, but its workers were able to move quickly into the offshore wind sector because of the similarity of skills required as well as training and support offered through the collaboration of all the relevant stakeholders including employers, trade unions and training providers (Strietska-Ilina et al., 2011).
Denmark’s example highlights that one of the keys to ensuring that skills can contribute to green growth is job mobility through reskilling and upskilling. Workers need to be able to move easily from sectors and occupations where employment is resource-intensive and facing eventual structural decline, notably fossil-fuel industries, to cleaner sectors and occupations with growing numbers of jobs, such as renewable energy industries.
It is also important to note that when the labour market adjusts smoothly to employment opportunities and losses, the impact of GHG mitigation policy on GDP growth is small (OECD, 2017). However, costs rise significantly when workers in declining sectors become unemployable elsewhere due to an incapacity to move to other sectors and lack of flexibility in labour markets and training system. Therefore, if we get the skills and training system right, the overall cost of GHG mitigation policy can be also reduced.
Ultimately, the low carbon economy and green growth depend on a transition away from polluting and carbon intensive industries, and this transition will require a trained workforce. This means that for many sectors, VET and adult learning is at the very foundation of green growth.
What should be done?
When it comes to adult skills and training, there are several challenges to achieve a smooth green transition. First, many adults across all sectors have low basic skills – this is a major challenge for upskilling, reskilling and job mobility. According to the OECD Survey of Adult Skills, on average one quarter of all adults in OECD countries that participated in the survey have low literacy or numeracy (OECD, 2016; OECD, 2013). Second, adult participation rates in learning are still low in some countries, in particular among low-skilled, and there are a range of barriers in engaging adult learning (OECD, 2019). Among the barriers, time-related barriers are the most prevalent. In Italy, Austria and Turkey, for example, about 70% of low-skilled and high-skilled workers (aged 19-65) who wanted to participate in learning activities but were not able to, had time constraints: they were too busy at work, had no time because of child care or family responsibilities, or the training course was offered at an inconvenient time or place. In particular, the share of adults having participated in open or distance education in the 12 months before the survey shows that participation of adults, in particular, lower-skilled workers, in open or distance education is very low, meaning that even when learners do not have to travel or participate in structured classroom training, barriers still remain. Third, there is a shortage of VET teachers and trainers and training opportunities for them to keep their skills up to date (Jeon, Torres, Musset, & Kaske, 2021 forthcoming).
Given these challenges, what can be done? First, VET and adult education systems need to provide more flexible learning opportunities. This includes part-time, weekend or online courses and in-company training. Recognition of prior learning can also help facilitate upskilling and reskilling pathways for job mobility. Second, governments and learning providers should proactively provide training opportunities in different forms and adult career guidance to lead more adults to develop skills for green jobs and transition to a greener economy. Third, VET and adult learning systems should be more proactive in terms of meeting future labour market demand for green jobs, rather than reacting late to the demand. Finally and fundamentally, VET and adult learning systems need to invest time and resources into quality and innovative teaching (OECD, 2020 - 2).
Of course, much of this comes down to investment. But providing financial assistance to VET systems and learners to undertake training in more future-proof sectors and occupations can contribute to economic recovery, the green transition, and also address existing skills shortages. It is agreed by many that education and training serve as a foundation to respond to almost any challenge – this is particularly true of climate change and green growth.
Author:
Shinyoung Jeon*
Policy Analyst and Project Leader, VET and Adult Learning Team, OECD Centre for Skills
© Shinyoung Jeon
*The opinions expressed and arguments employed in this article are those of the author and do not necessarily reflect the official views of the OECD or of the governments of its member countries.
This Blog is based upon a key note speech at the
Austrian EPALE Conference "The Role of Adult Education in Fostering Environmental Awareness" which was held on 17 and 18 June 2020.
The key note speech is also available on
video.
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