The Future of Work: The green transition and its effect on employment

Following on from previous articles ‘The Future of Work: Emerging job trends and the impact of AI (2025-2030)’, and ‘The Future of Work: Preparing for 2030 – The future of workforce reskilling’, this final article based on the World Economic Forum’s Future of Jobs Report 2025 focuses on what the green transition means for workforce transformation and reskilling needs. This article will be of particular interest for professionals looking to reskill in, or training providers seeking inspiration for training courses on, the new and emerging green skills.

 

The green transition remains a priority for many organisations globally, with employers expecting climate-change mitigation (47%) and adaptation (41%) trends, to transform their business in the next five years. This is driving demand for roles such as renewable energy engineers, environmental engineers and electric and autonomous vehicle specialists. Climate trends are also expected to drive an increased focus on environmental stewardship, which has entered the Future of Jobs Report’s list of top 10 fastest growing skills for the first time.

However, as countries seek to meet climate goals, questions arise regarding whether their workforces are equipped with the necessary skills to meet the demands of a net-zero future. The shift toward sustainable practices will require specialised expertise which will incur transition costs, particularly for those working in production occupations.

Talent demand continues to outpace supply, with the number of job postings requiring at least one green skill rising by nearly 22% between 2022 and 2023. To fully capitalise on opportunities created by the green transition and harness them in a way that is fair and inclusive, prioritising green skilling is essential.

Industries most affected by the green transition

Advanced Manufacturing: Expected to undergo transformation shaped by increased investments to reduce carbon emissions and adapt to climate change and rising cost of living. Companies are anticipating the adoption of AI (81%), robotics (69%), and new materials and composites (63%, almost twice as many as in other industries). To prepare for these changes, employers expect to be able to upskill 29% of workers in their current role, while they foresee a need for 15% of workers to be reskilled and re-deployed in the next five years.

Agriculture, Forestry, and Fishing: Climate mitigation and adaptation are key challenges highlighted by the industry, alongside rising cost of living. As employers address these challenges, they are planning to upgrade their workforce strategies by emphasising upskilling and reskilling, hiring for new skills, and augmenting their workforce with technology.

Automotive and Aerospace: Stands out for its expectation regarding the significant impact that both climate mitigation and geoeconomic fragmentation might have on the industry in the next five years. Employers are prioritising workforce strategies that focus on upskilling, automating processes, and transitioning staff from declining to growing roles.

Chemical and Advanced Materials: Industry transformation is expected to be heavily influenced by investments in the green and digital transitions, leading to a projected increase in job roles for AI and Machine Learning Specialists and Business Development Professionals by 2030. The industry also anticipates a need for more AI and big data as well as environmental stewardship skills.

Energy Technology and Utilities: Climate mitigation is key as companies plan to invest in greener technologies for energy generation, storage and distribution. As a result, Environmental Engineers, AI and Machine Learning Specialists and Renewable Energy Engineers are among the expected top-growing job roles in the sector. However, as employers aim to transform their business, industry players are concerned about skills gaps in the labour market (81%), outdated or unflexible regulations (44%), organisational culture and resistance to change, and the industry’s capacity to attract talent (37%).

Infrastructure: Expected to be driven by a need to increase investments in carbon reduction, climate adaptation and digitalisation. As a result, new job roles are expected to be created for Big Data Specialists and Organisational Development Specialists.

Mining and Metals: Industry transformation by 2030 will be predominantly shaped by climate adaptation and climate mitigation trends, with 79% of industry players expecting transformative impact from energy technologies. The use of autonomous technology to complete work tasks is projected to increase faster than in other industries. AI and Machine Learning Specialists and Mining, Petroleum and Other Extraction Workers are expected to see growing demand in the industry in the next five years, with AI and big data and environmental stewardship seen as leading skills on the rise.

Oil and Gas: Expected to evolve and transform to reduce carbon emissions and adapt to climate change. According to 40% of respondents from the industry, industrial policy and government subsidies will also impact companies’ strategies in the next five years. As companies plan to adopt cleaner technologies they see increasing demand for skills in environmental stewardship, alongside AI and big data and technological literacy.

Job creation in the green economy

By 2030, climate-change adaptation is expected to be the third-largest contributor to net growth in global jobs, projected to contribute an additional 5 million net jobs, with climate-change mitigation contributing an additional 3 million net jobs. Meanwhile, trends in energy generation, storage and distribution are expected to create an additional 1 million net jobs, making it the second-largest technology-based contribution to net job growth, after AI and information processing technology.

Expectations around climate-change adaptation and mitigation trends are pushing environmental engineers and renewable energy engineers into the top 15 fastest-growing jobs, as well as driving growth in roles such as Sustainability Specialists and Renewable Energy Technicians. This is corroborated by evidence that ‘green hiring’ has consistently outperformed overall labour-market hiring trends in recent years.

Green hiring rates

The Future of Jobs Report 2025, used LinkedIn data (generated up to July 2024) to assess the progression of green hiring rates compared to overall hiring rates. Data showed that LinkedIn members with green skills are being hired at a significantly higher rate than other members, and that, despite a dip throughout 2021 and early 2022, green hiring rates have consistently outperformed overall hiring rates, and this has been consistently getting larger since its low point of May 2022.

Additionally, both green transition-related macrotrends are expected to drive some of the largest labour-market transformation, in absolute terms, in the global economy. This includes being the largest drivers of both job growth and decline in Farmworkers, Labourers, and Other Agricultural Workers as well as being among the strongest drivers of net job growth for Building Framers, Finishers and Related Trades Workers.

How will the green transition influence skill evolution?

There is a growing focus on environmental stewardship as a critical skill, reflecting an evolving alignment between business strategies and sustainability objectives. This rise, driven by climate adaptation efforts, carbon reduction initiatives, and energy generation, storage and distribution technologies, points to a profound shift whereby environmental skills are becoming increasingly integral across diverse sectors.

This highlights the growing interconnectedness of sustainability and global collaboration, particularly as businesses operate in increasingly fragmented and climate-sensitive environments.

Summary

Key trends include the rise of green jobs, particularly in renewable energy, environmental engineering, and sustainability roles, while industries like energy, manufacturing, and oil and gas undergo major transformations.

However, despite these opportunities, challenges such as skill gaps, economic disparities, resistance to change, and regulatory uncertainty must be addressed. By investing in green skills and workforce adaptability, economies can ensure sustainable job growth and long-term resilience in the face of climate change.