Green Jobs and the Washington Economy

Transcription

1 Green Jobs and the Washington Economy Desiree Phair, Regional Labor Economist Labor Market and Economic Analysis Washington State Employment Security Department Seattle, WA May 5,

2 Outline Background and Overview: Why the green economy matters to workforce agencies Current Research: states, WA Green Jobs Definitions: What s green? The economy? Industries? Occupations? Individual Jobs? Summary of some of the analytical studies PEW (NGA) O*NET Summary of the state-level survey work to date. WA Green Jobs Research Findings 2

3 Background The interest in climate change, environmental issues and green jobs continues unabated into For example, the American Recovery and Reemployment Act (ARRA) directed the Department of Labor to issue $750 million in competitive grants, with $500 million to be directed toward projects to prepare workers for careers in energy efficiency and renewable energy sectors. Many states, including Washington, have forged ahead in this area to propose a variety of activities, programs, and studies relating to the green economy and green jobs. Workforce planning, training, job search activities, and LMI research are all actively working to integrate green jobs concepts into the work of the Workforce system. CA hosts a major resource to help understand the green economy, a digest of all work relating to green. It can be found at: 3

4 4 The CA Green Jobs Index Website

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6 ARRA Green Jobs LMI Grants -- Consortia State LMI Improvement Grantees Indiana Consortium Louisiana Consortium Maryland Consortium Montana Consortium Nevada Consortium Vermont Consortium Industry/Sector/ Occupation Profile/ Survey by Analysis Industry Survey by Occupation Job Vacancy Survey Projections Skills Assessment/ Analysis Green Career Ladders/ Pathways/ Competency Models Labor Exchange Products/ Tools Real Time LMI Transferable Skills Training/ Curriculum identification & analysis x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 6

7 ARRA Green Jobs LMI Grants State Projects State LMI Improvement Grantees Industry/Sector/ Occupation Survey by Survey by Job Vacancy Profile/Analysis Industry Occupation Survey Projections Skills Assessment/ Analysis Green Career Ladders/ Pathways/ Competency Models Labor Exchange Products/Tools Real Time LMI Alabama x x x x x x x Alaska x x x x Arizona x x x California x x Delaware x x x x Transferable Skills Training/Curriculum identification & analysis Florida x x x x x x Georgia x x x Hawaii x x x x x Idaho x x x x x x Iowa x x Kentucky x x x x x x Minnesota x x x x x x 7

8 ARRA Green Jobs LMI Grants State Projects State LMI Improvement Grantees Industry/Sector / Occupation Profile/Analysis Survey by Industry Survey by Occupation Job Vacancy Survey Skills Assessment/ Projections Analysis Green Career Ladders/ Pathways/ Competency Models Labor Exchange Products/Tools Real Time Transferable LMI Skills Training/Curriculum identification & analysis Missouri x x x x New Jersey x x x New Mexico x x x x x New York x x x x North Carolina x x x x x Ohio x x x x Oregon x x x x Pennsylvania x x x x Puerto Rico x x x South Carolina x x x x x Tennessee x x x Washington x x 8

9 Washington LMI Green Jobs Grant Activities Project Administration Usability/Workforce Explorer Project Data Exchange Tools Occupational Dashboard Customizable Dashboard Advanced Occupational Query Tool Advanced Analysis Tools Online Resource Center 9

10 WA Green jobs LMI grant administration 10

11 JAD (Joint Application Design) Findings for Occupational Dashboard, Customizable Dashboard and Data Feeds 68 The four questions asked participants relating to Occupational Information were: What are the most common types of occupational information that you use? What activities are you involved with where you use occupational information? Are there any other types of occupational information you would like, but do not currently have? How do you know you have the right occupation for your clients/needs? Employers 15% What are the most common types of Occupational Information that you use? Search of Related Occupations 6% Wages 15% Career Path/Ladder 18% Green Occupatons (incl. Wages) 9% Skills & Training 15% Demand/ Decline occupations 22% 11

12 Data Exchange Tools Washington Career Bridge: 12

13 Occupational Dashboard Quick access to occupational information and trends 13

14 14 Occupational Query Tool

15 15 Occupational Query Tool

16 Improved Analytical Resources Improve analytical resources Analysis cubes Create Custom/ad hoc regions, industry, occupation groups Cross several datasets Mapping and charting 16

17 Online Resource Center Create an on-line learning center containing modules of green jobs information and workforce intelligence. 17

18 18 What Is Green?

19 What is Green cont. The CA Online Digest lists 44 separate definitions from various studies and reports. A collection by the Florida Agency for Workforce Innovation lists 14 different states definitions and 4 different definitions by federal agencies or reports. We certainly need to reduce this definitional anarchy to a few standardized definitions, perhaps varying by purpose. The recently developed BLS green jobs definition may provide a standardized approach. 19

20 More on the definition of green Some of the definitions are quite specific, including specifying fuels used. Some definitions specify industries (manufacturing, construction, transportation). Some require a specific wage. Some are limited to renewable energy and energy efficiency, while others include a broader approach, including other environmental areas. 20

21 The BLS Definition of Green Jobs Green jobs are either: A. Jobs in businesses that produce goods or provide services that benefit the environment or conserve natural resources. B. Jobs in which workers duties involve making their establishment s production processes more environmentally friendly or use fewer natural resources. 21

22 Washington s Definition of green jobs Development of products and services that promote environmental protection and energy security. Businesses engaged in: Energy efficiency Renewable energy Preventing and reducing pollution Mitigating or cleaning up pollution 22

23 Toward a National Definition 1. WA, along with other states, is planning to augment the national employer surveys being drafted by the BLS to allow more robust state and sub-state level green jobs information for workforce purposes. 2. Such an approach will permit greater efficiencies in data collection, as well as common definitions across the states, allowing for more precise state-to-state comparisons. 23

24 Analytical studies Not based on surveys of employers Attempt to work within existing taxonomies (NAICS and SOC) to identify green industries, occupations, or jobs Sometimes based on a convenience sample of members of industry associations or interest groups 24

25 Analytical studies part duex Over 100 analytical reports listed on the CA EDD green digest web page. Most have a digest entry, which summarizes the article, lists key findings, the definition of green, the geography covered, bibliography, and other salient facts about the report. I will summarize just two of these 100+ reports based on my judgment about their importance. 25

26 Analytical studies part 33 1/3 A study conducted by the PEW Charitable Trusts that has gained wide prominence and has been recently cited by the National Governor s Association (NGA). The O*NET occupations study entitled Greening of the World of Work. This is becoming a very important study because it relates directly to O*NET and the Standard Occupational Code (SOC). 26

27 27 PEW Study

28 PEW Study -- Definition The Clean Energy Economy cuts across five categories: 1. Clean Energy, 2. Energy Efficiency, 3. Environmentally Friendly Production, 4. Conservation and Pollution Mitigation, 5. Training and Support 28

29 PEW Study -- Methods Step One: Develop a list of green companies from those that have received venture capital; can be found via industry association membership lists, green company directories, or press coverage; companies mentioned as green in published articles; and companies that received renewable energy tax credits. Step Two: Identify other companies in the same detailed industries as the listed companies that are that either completely or partially green by PEW s definition. The count of clean or green jobs is the employment associated with these identified green firms. The method allows year-to-year comparisons at the state level by the five clean energy categories. 29

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31 Pew Study -- Assessment We limited our analysis to a set of core companies and jobs in the clean energy economy because it is difficult to separate the limited number of these jobs that reside in traditional companies Pew s count of these jobs is conservative. -- Page 46, PEW Report While the estimate of green jobs from the PEW study is conservative and much lower than other estimates, it has the advantage of allowing state-to-state comparisons as well as estimates over time. 31

32 32 O*NET Study

33 O*NET Study -- Definitions The green economy encompasses the economic activity related to reducing the use of fossil fuels, decreasing pollution and greenhouse gas emissions, increasing the efficiency of energy usage, recycling materials, and developing and adopting renewable sources of energy. -- Page 3 Greening of the World of Work The greening of occupations refers to the extent to which green economy activities and technologies increase the demand for existing occupations, shape the work and worker requirements needed for occupational performance, or generate unique work and worker requirements. -- Page 4, Greening of the World of Work 33

34 O*NET Study -- Methods Identified specific occupations from a review of over 60 green economy and clean energy studies or reports. Research led to the classification of these 170 occupations into green increased demand occupations, green enhanced skills occupations, and green New and Emerging occupations. -- Page 31-34, Greening of the World of Work 34

35 O*NET Study -- Findings In summary, the current research identified a total of 64 O*NET-SOC occupations from the 2006 taxonomy as green increased demand occupations and 60 O*NET- SOC occupations as green enhanced skills occupations. [and] 46 newly identified N&E [New and Emerging] occupations in the green economy qualified as green N&E occupations. -- Page 34, Greening of the World of Work 35

36 State-level Survey Research Into Green Jobs The first three states to complete green jobs surveys through their LMI shops were Washington, Michigan, and Oregon. Many other states are using ARRA funding to undertake similar studies. All use similar but not identical methodology. This is a high-level summary of the three intially completed surveys 36

37 Similar definitions: In Washington Development of products and services that promote environmental protection and energy security. Businesses engaged in: Energy efficiency Renewable energy Preventing and reducing pollution Mitigating or cleaning up pollution 37

38 Similar definitions: In Michigan What is the green economy? Your company contributes to the green economy if you have employees working to provide products, parts, goods, or services in any of the following core areas: 1. Producing renewable energy 2. Increasing energy efficiency 3. Clean transportation and fuels 4. Agriculture and natural resources conservation 5. Pollution prevention and environmental cleanup 38

39 Similar definitions: In Oregon A green job is one that provides a service or produces a product in any of the following categories: Increasing energy efficiency Producing renewable energy Preventing, reducing, or mitigating environmental degradation Cleaning up and restoring the natural environment Providing education, consulting, policy promotion, accreditation, trading and offsets, or similar services supporting the categories above. 39

40 Similar Approach to the Survey All used the Quarterly Census of Employment and Wages (enhanced UI employer listing) as the sample frame. All based their sample on NAICS industry codes All considered the individual job, not occupation, nor industry, as the unit of analysis. All used a relatively short survey form and supplemented a mail survey with telephone follow up. Oregon also used a web-based survey option. All had acceptable response rates: (Wa-61%; MI-49%; OR- 45%). 40

41 State Survey Results All three states found a relatively low number of green jobs (WA 1.5%; MI 3.4%; and OR 3.0% of the workforce) Michigan analysts compared the three states, adjusting for the differences in green jobs definitions and found a great deal of consistency in the three state results. Washington estimated there were 47,200 green jobs, Michigan estimated 109,000 green jobs, and Oregon estimated 51,400 green jobs. 41

42 42 WA State Research Results

43 Background 2008 legislation directed Employment Security to research the number of green jobs in Washington. The study estimated that there were 47,194 green jobs in the state in legislation called for a second study, which was expanded to include public-sector jobs and additional industries. 43

44 Next Step: The Survey Scientifically sound design Direct, private and public-sector green jobs More than 13,000 responses Results weighted to represent green jobs in all sectors 44

45 2009 Key Results Estimated 76,137 private-sector green jobs 3.1 % of total covered private sector employment Additional 23,182 public-sector green jobs 45

46 Key Results Cont. Total of 99,319 green jobs 3.3% of total covered employment in WA Private-sector employers surveyed in 2008 and again in 2009 reported 32.4% increase in number of green jobs 46

47 Private-Sector Results by Green Core Area 47 Energy efficiency: 44.3% of all private-sector green jobs. More than two-thirds in construction, which is up 28.9% from 2008 Prevent/reduce pollution: 39.9% of privatesector green jobs. More than half in agriculture. Clean/mitigate pollution: 11.6% of private sector green jobs. Mostly professional/technical services and waste management & remediation. Renewable energy: 4.1% of private-sector green jobs. Mostly construction and professional/technical services.

48 Public-Sector Results by Green Core Area Energy efficiency: 20.9% of public-sector green jobs. Prevent/reduce pollution: 66.2% of publicsector green jobs. Clean/mitigate pollution: 11.6% of publicsector green jobs. Renewable energy:1.3% of public-sector green jobs. 48

49 Results by Top Industries Construction industry had most green jobs: 29,410 (38.6% of green jobs), primarily in energy efficiency Agriculture industry was second with 12,027 green jobs More than 2/3 of public-sector jobs are in preventing and reducing pollution Private-sector split between energy efficiency and reducing pollution 49

50 Results by Geography Among WDA s, Benton-Franklin region had the highest proportion of green jobs (8.2%) relative to total employment Snohomish Co. had the lowest (2.1%) King Co. had the largest number (32,857) and percentage (33.1%) of all green jobs in WA, although green jobs comprised only 2.7% of total employment 50

51 Results by Value, Pay, and Education Green jobs worth >$5.1 billion a year. Highest pay: managers, engineers, electricians, skilled trades. Lowest pay: insulation installers, general laborers, agricultural workers. Majority of jobs (approx. 80%) require less than a four-year degree for entry. 51

52 Few Skill Differences 56% of employers reported that green job skills are identical to those for non-green jobs 7.5% reported mostly different and 4.1% reported entirely different skills Employers in professional services were less likely than those in goods-producing industries to report that green job skills were identical to those for non-green jobs 52

53 Conclusions Number of green jobs is growing. They exist in all industries within the state, though concentrations vary. We have a greening economy, but few bright green sectors. Number of private-sector green jobs in 2009 was much higher than in 2008 survey. Still no new green industries, and few new occupations are uniquely green. Skills needed for most green jobs are not very different, but some are specialized. 53

54 For more information: Desiree Phair Regional Labor Economist LMEA Central Office (360) Workforce Explorer 54