This article is from the September/October 2010 issue of Dollars & Sense: Real World Economics, available at http://www.dollarsandsense.org/archives/2010/0910wicks-lim.html
This article is from the September/October 2010 issue of Dollars & Sense magazine.
We Need a (Green) Jobs Program
Clean-energy investment would promote job growth for a wide swath of the U.S. workforce.
Fourteen months of an unemployment rate at or near 10% clearly calls for the federal government to take a lead role in job creation. The White House should push its clean-energy agenda as a jobs program but steer clear of all the hype about “green-collar” jobs. Green-collar jobs are widely perceived as job opportunities accessible only to an elite segment of the U.S. workforce—those with advanced degrees, such as environmental engineers, lab technicians, and research scientists. Such jobs are inaccessible to the 52% of unemployed workers with no college experience. The truth is, however, that clean-energy investments could serve as a powerful engine for job growth for a wide swath of the U.S. workforce.
My colleagues at the Political Economy Research Institute and I examined a clean-energy program that includes making buildings more energy efficient, expanding and improving mass transit, updating the national electric grid, and developing each of three types of renewable energy sources: wind, solar, and biomass fuels. Here’s what we found.
First, clean-energy activities produce more jobs, dollar for dollar, than fossil fuel-related activities. This is because clean-energy activities tend to be more labor intensive (i.e., more investment dollars go to hiring workers than buying machines), have a higher domestic content (i.e., more dollars are spent on goods and services produced within the United States) and have lower average wages than fossil fuel-related activities. The figures in the table below show how a $1 million investment in clean-energy activities would create more than three times the number of jobs that would be created by investing the same amount in fossil fuels. (See Heidi Garrett-Peltier, Saving Energy Creates Jobs, Dollars & Sense, May/June 2009.)
Second, many clean energy sector jobs would be accessible to workers with no college experience. The table also shows how the jobs created by a $1 million investment in clean energy would be spread across three levels of education: high school degree or less, some college, and B.A. or more. Nearly half of the clean energy jobs would be held by workers with a high school degree or less. These include jobs for construction laborers, carpenters, and bus drivers. Fewer than one-quarter of clean-energy jobs would require a B.A. or more. The figures for the fossil fuels sector (second column) show that they are more heavily weighted toward jobs requiring college degrees.
Does this mean green investments will just create lots of low-paying jobs? No. The figures in the table below show that investing $1 million in green activities rather than fossil fuel-related activities would generate many more jobs for workers at all three levels of formal education credentials. Compared to the fossil fuels sector, the clean energy sector would produce nearly four times the number of jobs that require a high school degree or less, three times the number of jobs that require some college experience, and 2.5 times the number of jobs that require a B.A. or more. Green investments would produce more jobs at all education and wage levels, even while generating proportionately more jobs that are accessible to workers with a high school degree or less.
Workers are right to worry about whether these high school degree jobs would offer family-supporting wages. Construction laborers, for example, average at $29,000 annually—awfully close to the $22,000 official poverty line. In addition, women and workers of color have historically faced discrimination in the construction industry, which would be the source of a lot of the lower-credentialed jobs in the clean energy sector. Workers will need to do some serious organizing to put in place labor protections such as living-wage laws, strong collective bargaining rights, and affirmative action policies to insure that these jobs pay decent wages and are equally accessible to all qualified workers.