Green Jobs in Minnesota Rachel Vilsack Regional Labor Market Analyst MN Dept. of Employment & Economic Development St. Paul WorkForce Center Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development About DEED’s regional analysts Collaborate with regional stakeholders on new research Extend access to DEED reports and statistics Conduct presentations and training on the regional economy and labor market Original research and analysis Five regional analysts stationed across the state Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development What’s green? There is no national definition of green industries, or green jobs, besides the general understanding that it is “environmentally friendly” or “beneficial to the environment.” According to the U.S. Dept of Labor: “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.” Many organizations define the green economy to include business who produce renewable energy, produce green products, offer green services, or are involved in environmental conservation. Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Examples of green industries Utilities – solar, wind and hydroelectric power, energy storage, energy transmission/distribution Construction – home construction, industrial building, residential remodelers, residential plumbing, HVAC, glass and glazing, roofing, siding, electrical, drywall, insulation Manufacturing – HVAC equipment manufacturing, glass manufacturing, paper mills, electric lamp bulb and fixture manufacturing, household appliance manufacturing, power distribution and transformer manufacturing, battery manufacturing, automobile manufacturing, biofuels Administrative and Waste Services - recycling, waste collection and remediation Business and Professional Services – industrial design services, environmental consulting services, architectural services, engineering services Government – conservation and pollution prevention, cleanup/safety, monitoring and compliance Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development So what’s a “green” job? Like a color scale, jobs are more or less green. Less Green 64 “increased demand” green occupations More Green 60 “enhanced skills” green occupations Most Green 91 “new and emerging” green occupations Source: O*NET, “Greening of the World of Work,” June 2009. Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Green increased demand occupations Increase in employment due to impact of green economy activities and technology. Work context may change, but tasks do not. Examples: Electricians Agriculture Inspectors Materials Scientists Team Assemblers Customer Service Representatives Forest and Conservation Technicians Welders Source: O*NET, “Greening of the World of Work,” June 2009. Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Green enhanced skills occupations Impact of green economy significantly changes skills and requirements of workers. Basic purpose of job stays the same, but tasks, skills, knowledge, credentials, etc., change. Examples: Civil Engineers Construction Laborers Landscape Architects HVAC Mechanics and Installers Automotive Specialty Technicians Wholesale and Retail Buyers Source: O*NET, “Greening of the World of Work,” June 2009. Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Green new and emerging occupations Impact of green economy activities and technology creates unique work and requirements. Creation of a new occupation, sometimes born from an existing occupation. Examples: Air Quality Control Specialists Industrial Ecologists Biofuels Processing Technicians Carbon Credit Traders Energy Auditors Solar Photovoltaic Installers Solar Sales Representatives Source: O*NET, “Greening of the World of Work,” June 2009. Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Gauging the “green” workforce needs of Minnesota businesses Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Percent of total products or services considered green by Minnesota businesses 100% Percent, 1% 50 to 99 Percent, 14% Less than 50 Percent, 33% Zero or None, 53% Source: MN Dept. of Employment & Economic Development Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Green practices of Minnesota businesses Minimize waste and energy in product distribution and end-use Implement environmental corporate social responsibility into company polices and decisions Support low-impact employee transportation (carpooling, mass transit, telecommuting) Adopt pollution prevention best practices (e.g. reduce or eliminate pollution at the source) Select suppliers that provide environmentally superior materials, products, and practices Integrate green design approaches in facilities and sites Source: MN Dept. of Employment & Economic Development Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Current Minnesota employees with green skills 100 Percent 2% 50 to 99 Percent 1% Less than 50 Percent 51% 100 Percent 3% 50 to 99 Percent 11% Zero or None 46% Less than 50 Percent 45% Percent of Current Employees with Green Skills or Knowledge Zero or None 41% Percent of Employees with Green Skills or Knowledge in Two Years Source: MN Dept. of Employment & Economic Development Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Green skills or knowledge needed by Minnesota businesses Percent of Firms with Current Needs Percent of Firms with Projected Future Needs 49.8% 11.6% 34.0% 9.3% 32.6% 7.6% 31.1% 11.3% 28.7% 5.3% 22.7% 9.2% General knowledge of the value and principles of energy conservation Identification of operational waste, including waste minimization and managing hazardous wastes Knowledge of environmental policies or regulation (e.g. firm-specific or government) Management skills for implementing or sustaining conservation practices or processes, including facility assessment and energy auditing Knowledge of innovative clean technologies and processes How to use green materials in the manufacturing or construction process Source: MN Dept. of Employment & Economic Development Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Barriers to implementing green practices for Minnesota businesses Percent Cost of implementation Shortage of workers currently having green knowledge or skills Government policies Shortage of programs to train workers in green production, processes or businesses Not interested in implementing green practices or production at this time Shortage of workers with other (non-green related) knowledge or skills 45.7% 19.6% 12.5% 11.1% 7.0% 5.6% Source: MN Dept. of Employment & Economic Development Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Key observations While green accounts for a large share of products or services for a small share of firms, it is clear that a large number of firms either currently perform or plan to perform green practices. Any company can have green practices, even if they don’t sell a green product or service. Despite an economic recession, 20 percent of Minnesota businesses cited a shortage of workers currently having green knowledge or skills as a barrier to their implementation of green practices. Employers plan to increase the number of workers with green skills in the coming year. Some of this growth will be in businesses that produce a green product or service, but respondents also valued practices that could be applied to many types of industries, such as energy conservation and waste reduction. Analysis & Evaluation Office Communication, Analysis & Research Division MN Department of Employment & Economic Development Minnesota-produced Labor Market Information is online at: www.deed.state.mn.us Rachel Vilsack Regional Labor Market Analyst St. Paul WorkForce Center Phone: 651.642.0728 rachel.vilsack@state.mn.us Analysis & Evaluation Office For a copy of this presentation, please visit: http://rachelvilsack.com Follow Twin Cities labor market data – through me – on Twitter at: http://twitter.com/rachelvilsack Communication, Analysis & Research Division MN Department of Employment & Economic Development