The green transition has profound implications for labour markets and skill needs. Climate policies that reduce carbon emissions, such as stricter environmental regulations and incentives for green technologies, will reshape demand for workers across sectors. While jobs in high-emission industries may decline, employment is expected to rise in jobs related to renewable energy and sustainable technologies. The green transition will also require workers to adapt within their existing job, such as car mechanics learning to service electric vehicles alongside traditional ones.
A skilled workforce is essential to implement sustainable practices, innovate production systems, and ensure compliance with environmental standards. Education and training systems must adapt to these shifts by equipping learners not only with technical expertise, but also with green values and transversal skills, such as critical thinking and problem-solving that support lifelong learning and societal sustainability. Ensuring that the green transition is a just transition is also essential: all individuals must have access to upskilling or reskilling opportunities to remain competitive in a changing labour market.
Vocational Education and Training (VET) is uniquely positioned to bridge the gap between education and employment by offering job-oriented learning that evolves in tandem with the green transition. Labour market analysis shows that VET programmes play a key role in preparing students for a greener labour market. In OECD countries, about one in five young adults with an upper-secondary VET qualification are employed in green jobs – jobs that have either grown in demand or evolved in content due to the green transition. However, VET graduates are underrepresented in newly emerging green occupations, which often require more advanced analytical skills typically acquired through higher education. They are also overrepresented in greenhouse gas (GHG)-intensive jobs, pointing to the need for support in transitioning these workers into greener jobs.
This report looks at the potential of Finland’s VET system to further support the green transition. The Finnish VET system already offers a strong foundation for the green transition, providing training opportunities to young learners in initial education and adults who are upskilling or reskilling. Nearly 45% of young people in upper-secondary education are enrolled in VET programmes. Moreover, the share of adult learners in VET is higher than in most other OECD countries. Approximately 25% of young upper-secondary VET graduates are employed in green jobs, with an additional 11% working in occupations that are not classified as green but share similar skill requirements. These individuals are well positioned to transition into green employment. Most green jobs held by Finnish VET graduates are in middle-skill occupations, where the green transition is either changing job content or increasing labour demand. In contrast, entirely new roles driven by the adoption of green technologies and processes, often requiring high-level skills, are more commonly filled by individuals with higher levels of education. Around 8% of Finnish VET graduates work in GHG-intensive occupations, a higher share than in the general population and among higher education graduates, making them more vulnerable to employment shifts driven by the green transition.
To support Finland in making the most of its VET system to support and drive the green transition, this report provides recommendations in four areas: i) the development and revision of VET qualifications; ii) post-secondary VET pathways; iii) career guidance; and vi) the VET teaching workforce.
The changes brought about by the green transition require a swift adjustment to the content of VET qualifications. To accurately identify the skills needed, this report recommends a structured categorisation of VET qualifications in Finland to help determine which qualification units should be updated more frequently. In addition, consistent reporting of local VET units, would improve transparency and integration with national systems. Aligning VET qualification content with existing green skills classifications, while also consulting social partners and higher education institutions, would ensure the inclusion of the relevant skills for the green transition. Innovative methods such as the use of artificial intelligence, big data, and labour market analytics can further support the timely identification of emerging skill needs.
Finland’s flexible and modular system - whereby qualifications are broken down into units - allows learners to complete qualifications based on the skills and knowledge they have acquired, in a manner tailored to their individual needs. Finland is now taking its first steps in developing and offering ‘micro-qualifications’ – short, targeted learning programmes that prepare individuals for specific jobs. These can help workers transition quickly into green roles or update their knowledge in response to regulatory or technological changes. ‘Micro-qualifications’ may be especially valuable for sectors facing acute labour shortages. However, implementation challenges remain, including questions about governance and awareness. Engaging social partners and employers in developing these credentials is essential for relevance and acceptance.
Recognising that many jobs at the heart of the green transition demand more advanced technical and analytical skills, this report calls for strengthening post-secondary VET pathways in Finland. This includes diversifying Specialist Vocational Qualifications (SVQs), especially in STEM fields, and improving articulation with Universities of Applied Sciences (UAS). At present, SVQs are primarily designed for experienced professionals and are not well suited to younger learners with limited work experience. Adapting certain SVQs to be more accessible and relevant to a younger audience could help increase the supply of higher-level technical skills needed for green jobs. It could also promote transitions from upper-secondary VET to UAS, with SVQs serving as a stepping stone.
Career guidance is another key lever for successful transitions into green jobs. Career guidance services should be expanded to include detailed, accessible information on green job opportunities and training. Targeted efforts to reach lower-secondary students, especially girls and other groups who may not consider VET or green jobs, can help broaden participation in green careers. VET providers are the main source of guidance for current and prospective VET learners in Finland, and it should be ensured that VET learners receive a broad picture of training opportunities and labour market needs, not only those relevant for the provider. Guidance that is informed by high-quality information about labour market needs at both national and regional levels helps prevent skill mismatches.
Finally, VET teachers are central to this transformation. They need to have a good understanding of what the green transition implies for labour markets and skill needs and need to keep their own skills up to date. The report recommends attracting industry professionals into teaching roles and expanding modular, flexible certification pathways into teaching profession. Systematic professional development should be available to ensure educators are equipped to teach sustainability concepts, use green pedagogical practices, and stay informed about sector-specific developments. The inclusion of sustainability issues in teacher training programmes – currently optional – is one example of such measures.