A new report from the OECD Vocational Education and Training (VET) and the Green Transition: Insights from Labour Market Data outlines how the green transition is reshaping employment, as well as the new demands for skills in sustainable/green industries and the changing requirements in traditional industry sectors.
According to the report, nearly one in four VET graduates across OECD member countries work in “green-driven” occupations, that is, in roles which are directly impacted by the shift toward environmental sustainability. These are most often existing jobs experiencing increasing demand or evolving task requirements, such as automotive technicians and electricians. However, VET graduates are also over-represented in greenhouse gas (GHG)-intensive jobs.
For Australia’s VET sector, the report underscores the importance of work underway across many Jobs and Skills Councils to align qualifications with emerging green skills. Occupations such as construction, manufacturing, utilities, and transport are (a) central to the green transition and (b) among those experiencing the most significant skill shifts.
Graduates in engineering, manufacturing, and construction fields of study are the most likely to go into green-related jobs. However, the report also notes that VET learners are under-represented in the newest and highest-skilled green roles, which tend to require higher level qualifications.
Job quality for VET graduates in green roles is seen as being mixed. While green jobs can be relatively secure, particularly in countries with strong collective bargaining, the OECD finds access to training is often insufficient. In many countries, young VET graduates working in green or GHG-intensive occupations are less likely to participate in job-related training than those with higher-level qualifications. And compounding this lack of access to training, the report also finds that some of the industries with the greatest exposure to green policy changes, such as construction and transport, offer the least access to upskilling and reskilling.
Importantly, the report finds that many VET-qualified workers are already in jobs with medium to high “green potential”, that is, occupations that are not currently ‘green’ but which could become so with modest amounts of training. These include roles in ICT and in the services sector.
The report also highlights gender disparities: with women significantly under-represented in green-driven and high-potential green jobs, largely due to occupational segregation and lower participation in STEM courses. The OECD identifies that addressing these gaps will require both targeted career guidance and more inclusive training design.
Finally, the OECD recommends several policy responses, many of which resonate strongly with Australia’s VET priorities. They include:
- regularly updating VET course content to reflect green skill needs
- increasing the flexibility and availability of training (particularly for adult learners)
- integrating both STEM and soft skills such as leadership and problem-solving into VET programs, and
- strengthening pathways from school to VET and higher education.
