The green transition is reshaping labour markets, creating an urgent need for new skills to support a low-carbon economy. Achieving climate neutrality will require a major shift in the workforce’s skills and competencies.
Vocational education and training (VET) is critical for the green economy. In many OECD countries about one-third of young people hold an upper-secondary vocational qualification. VET prepares workers for skilled and semi-skilled jobs in key sectors like construction, transport, energy, and manufacturing – all vital to the green transition.
VET graduates are heavily involved in green jobs. Nearly one-quarter of young (under 35) upper-secondary VET graduates work in “green-driven” jobs – jobs affected by green activities, such as cutting fossil fuel use or improving energy efficiency. This is a higher share than among tertiary-educated youth.
“Green-driven” jobs range from new high-skill jobs to evolving existing occupations. Some green-driven jobs are entirely new occupations tied to emerging green technologies, often requiring advanced skills and usually filled by those with higher education or post-secondary technical qualifications. Others are existing mid-skill jobs whose tasks are changing or whose labour demand is rising due to the green transition – many VET graduates work in these. While these mid-skill green-driven jobs often offer moderate wages, in some countries they remain relatively low-paid, which could deter potential workers. (See Figure 1 for the distribution of VET graduates across different categories of green-driven occupations).
VET graduates also face risks in high-emission industries. Young people with VET qualifications are more likely than those with higher level qualifications to work in greenhouse gas (GHG) intensive jobs (around 8% of young VET graduates, versus 2% of those with higher education). These jobs situated in high-emission sectors (e.g. fossil fuel-based industries) are likely to contract as economies green, so VET graduates working in these occupations may be at greater risk of displacement if they are not supported to transition into new roles.
How the green transition reshapes vocational education and training
Share of young adults (below the age of 35) in different categories of green-driven jobs, by their highest educational attainment, 2014-2022 (OECD average)
Note: The OECD average was calculated based on the European Union OECD countries.
Data for the United Kingdom correspond to the period: 2014-2021. Upper secondary VET includes ISCED level 3 and ISCED level 4 vocational programmes. Higher education refers to programmes at ISCED level 6 and above.
Source: Kuczera, M. (2025[1]), “Vocational education and training (VET) and the green transition: Insights from labour market data”, OECD Social, Employment and Migration Working Papers, No. 327, https://doi.org/10.1787/02b7fcb1-en.
A recent OECD analysis of labour market data among young adults (under 35) shows that the green transition brings both opportunities and challenges for VET (Kuczera, 2025[1]). The analysis is based on the labour force survey data from OECD countries that are members of the European Union. As countries adopt greener technologies and practices, the nature of many jobs is changing. VET programmes must adapt their content and offerings to keep pace with evolving labour market needs. Challenges vary by the type of job impacted by the green transition, meaning different strategies are required. Figure 2 offers a visual summary of how VET programmes can adapt to each category of job impacted by the green transition.
Jobs affected by the green transition can be grouped into several types, each requiring a tailored VET response:
Existing occupations with evolving tasks (e.g. auto mechanics servicing electric vehicles): VET curricula and qualifications should be continuously updated to reflect new technologies and changing task profiles. Close collaboration with industry (employers and unions) remains the gold standard for keeping qualifications up to date, but many countries are also using new strategies. For example, VET institutions that have strong links with green-tech companies can help identify emerging skill needs, and some countries are leveraging real-time labour market data and artificial intelligence to update training content.
Existing occupations with rising demand (e.g. domestic electricians): VET systems need to scale up training provision for these jobs. As the green transition boosts demand for certain trades and technical jobs, expanding the capacity of VET programmes (more places, VET teachers, and equipment) is crucial to avoid skill bottlenecks.
New “green” occupations (e.g. hydrogen fuel cell technicians or wind turbine operators): These jobs often require advanced, complex skills typically taught in university or post-secondary technical programmes. Not all countries have well-developed post-secondary technical programmes, and where they exist, clear bridges from upper-secondary VET to these qualifications are sometimes lacking. Strengthening pathways to post-secondary technical and university programmes is important so that VET graduates can attain the advanced skills needed for newly emerging green jobs – otherwise they risk being excluded from the most innovative sectors of the green economy.
Declining greenhouse gas (GHG) intensive occupations (jobs in sectors like coal power or oil refining): For jobs likely to shrink as emissions are cut, VET programmes must reorient or scale down training pipelines. In other words, training for occupations with declining prospects should be reduced or refocused toward skills that are transferable to greener industries. At the same time, workers currently in these GHG-intensive jobs need pathways to reskill and transition into growing green sectors.
Image credit: © Cat Box/Shutterstock.com, © Owlie Productions/Shutterstock.com, © dee karen/Shutterstock.com, © Deemerwha studio/Shutterstock.com.
Workers with VET qualifications who are employed in green-driven or GHG-intensive occupations will need ongoing upskilling and reskilling opportunities. As job requirements evolve – or as workers seek to move from shrinking industries into growing ones – they must be able to update their skills regularly. Effective upskilling hinges on both motivated individuals and an enabling training system. Individuals need a mindset of lifelong learning and strong basic skills to build upon. On the system side, there must be a sufficient supply of accessible training options (both formal courses and non-formal training), along with support measures (e.g. financial incentives, flexible schedules, career counselling) to help people overcome barriers to participation. VET programmes are well-suited to deliver this kind of flexible, modular training tailored to adult learners. For example, Finland provides every VET learner – including adults – with a personal development plan that accounts for their prior experience and targets specific skill gaps, ensuring training meets each learner’s needs (OECD, 2025[2]).
Despite the importance of adult learning, many workers in OECD countries remain disengaged from training, even among those who face green transition impacts. Notably, VET graduates employed in GHG-intensive occupations are less likely to participate in job-related training than their peers in other jobs, which limits their ability to shift into greener employment. Moreover, individuals with higher qualifications, such as post-secondary technical ones, are more likely to pursue further training than those with only upper-secondary VET. This suggests that more advanced VET qualifications help prepare workers for a changing economy by making additional training more accessible. While gaps in training participation persist everywhere, some countries (e.g. Denmark, Finland, Norway, Sweden, and the United Kingdom) have managed to engage a relatively high share of upper-secondary VET graduates in adult upskilling. Examining the policies of these countries could provide valuable lessons for designing effective retraining systems that support the green transition (OECD, 2025[2]).
Information and guidance systems are essential to help both young people and adults navigate green labour market opportunities. Current and prospective VET learners need timely, reliable information on jobs impacted by the green transition, the skills they require, and the education or training pathways that lead to them. Strengthening career guidance on green labour market opportunities – through traditional counselling services as well as digital tools – will enable individuals to make informed choices in a rapidly changing job market. For example, Canada’s online Job Bank now highlights green jobs and the associated training programmes, helping users, from school-leavers to mid-career workers, understand how to prepare for jobs in the green economy (Government of Canada, 2024[51]).
Good guidance can also help counter misconceptions and broaden participation in green-driven jobs. For instance, persistent gender biases and stereotypes about certain sectors contribute to significant gender gaps in green-driven occupations. Women are currently underrepresented in many green-driven jobs – meaning they risk missing out on the growing opportunities of the green transition – whereas men are more likely to be found in GHG intensive jobs, which puts them at higher risk if those jobs decline. Career guidance initiatives should proactively address these biases, encouraging a diverse pool of talent to pursue training and careers in green-driven occupations.
It is also important that training and guidance services be tailored to individuals’ existing skill levels. Some workers – especially those who already have strong technical backgrounds – may only need minimal top-up training to adapt to green technologies or processes. Others, however, will require more extensive retraining to switch careers or acquire entirely new skill sets. By assessing individuals’ prior skills and experience, VET providers and career counsellors can direct people to the right level of upskilling.
To thrive in green economy, VET graduates will need a blend of technical knowledge and transferable “soft” skills. Analysis of new green occupations and of existing jobs that are evolving due to the green transition shows that both types of skills are in high demand:
Cross-disciplinary technical knowledge – this subset of green-driven jobs often requires higher-level skills across multiple fields (many of which are STEM disciplines – science, technology, engineering, and mathematics). For example, depending on the job, workers may need knowledge of construction and building systems, geography and environmental science, physics and chemistry, engineering and technology, computer programming and data analysis, economics and accounting, as well as understanding of laws, regulations, and public safety related to the environment.
Leadership and management skills – Equally important are strong “people” and organisational skills. Green transition frequently calls for abilities such as team leadership, project coordination, providing expert advice or consultation, negotiation and persuasion, and sales or stakeholder engagement skills (e.g. convincing clients to adopt energy-efficient solutions).
Individuals equipped with this mix of skills are well-positioned to move into green-driven occupations with relative ease. Importantly, these transferable skills are not exclusive to green-driven jobs – they are also common in sectors such as information technology and finance, which currently host fewer green-driven occupations. These skills are more commonly observed among individuals with higher levels of education, including those who have completed post-secondary technical programmes. This highlights the importance of creating clear progression pathways within VET systems so that learners can continue to build advanced skills over time. Strong links between upper-secondary VET and polytechnic or technical college programs can enable interested individuals to attain higher qualifications in engineering, renewable energy technology, and other specialised fields. For example, in Sweden post-secondary technical education (yrkeshögskolan) is being expanded to supply more advanced technical skills needed in a low-carbon economy. In 2024 alone, the government approved thousands of new training places across hundreds of post-secondary VET programmes – including additional courses in industrial production, clean energy, and sustainable food processing. New specialised programmes, for instance, in battery technology and electric vehicle manufacturing, have also been introduced to meet emerging industry needs (MYH, 2024[108]). The nature of these transferable green skills also highlights the need to equip all VET students with solid foundational skills (literacy, numeracy, digital skills, etc.) during their studies, since these core abilities form the basis for learning more specialised green competencies later on.
Ensure VET curricula remain dynamic and aligned with emerging green skills needs: The fast pace of green technological change can outstrip the speed at which VET qualifications are updated. Governments should enable more systematic curriculum updates – for example, by using labour market intelligence tools that provide up-to-date insights on evolving job requirements. Drawing on the expertise of VET institutions and employers in regions at the forefront of the green economy can also help keep training programmes relevant.
Expand access to post-secondary technical education: Many of the new jobs created by the green transition rely on cutting-edge technologies and complex skills, which often require education beyond the secondary level. Policymakers can support the creation and growth of post-secondary technical programmes (e.g. in renewable energy technology, environmental engineering, advanced manufacturing) and make it easier for both young people and adult workers to enrol.
Support transitions out of high-emission sectors with targeted reskilling efforts: Workers in industries that are shrinking or transforming due to the green transition need pathways into other jobs. Short, focused training modules – such as micro-credentials – offered through the VET system can help these workers pivot to green-driven occupations. A personalised approach, whereby each worker has his existing competencies assessed and is offer tailored training to fill specific skill gaps, support access to training.
Strengthen career guidance systems to be inclusive and forward-looking: Career guidance should proactively highlight green-driven job opportunities and the education/training paths leading to them. By providing clear information on job prospects, salary levels, and advancement pathways in fields like renewable energy, sustainable construction, or electric mobility, guidance counsellors and public employment services can steer more people into areas of skill need. It is equally important that guidance services reach a broad audience – including those who might not typically consider green careers (such as women, who are often underrepresented in STEM fields).
Embed foundational and transferable skills in all VET programmes to foster adaptability: To prepare students for a quickly changing world, VET curricula should emphasise core skills that enable adaptability. Strong basics in literacy, numeracy, and digital skills are essential, as they provide the platform for workers to learn new technologies and processes over their careers. Ensuring that every VET graduate leaves with a solid foundation will make the workforce more resilient and capable of acquiring whatever new skills the green transition may demand in the future.
Kuczera, M. (2025), “Vocational education and training (VET) and the green transition: Insights from labour market data”, OECD Social, Employment and Migration Working Papers, No. 327, OECD Publishing, Paris, https://doi.org/10.1787/02b7fcb1-en.
OECD (2025), Vocational Education and Training and the Green Transition in Finland, OECD Reviews of Vocational Education and Training, OECD Publishing, Paris, https://doi.org/10.1787/4d29a34a-en.
References
[3] Government of Canada (2024), Find a Green Job in Canada, https://www.jobbank.gc.ca/green-jobs (accessed on 28 November 2024).
[1] Kuczera, M. (2025), “Vocational education and training (VET) and the green transition: Insights from labour market data”, OECD Social, Employment and Migration Working Papers, No. 327, OECD Publishing, Paris, https://doi.org/10.1787/02b7fcb1-en.
[4] MYH (2024), Storsatsning på teknik och grön omställning när YH växer, https://www.myh.se/nyhetsrum/nyheter/storsatsning-pa-teknik-och-gron-omstallning-nar-yh-vaxer.
[2] OECD (2025), Vocational Education and Training and the Green Transition in Finland, OECD Reviews of Vocational Education and Training, OECD Publishing, Paris, https://doi.org/10.1787/4d29a34a-en.
Contact
Malgorzata Kuczera, OECD Centre for Skills, Malgorzata.Kuczera@oecd.org