CLEAN ENERGY JOBS Advancing inclusion through - Mark Muro, Adie Tomer, Ranjitha Shivaram, Joseph Kane - Brookings ...
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Advancing inclusion through
CLEAN
ENERGY
JOBS
Mark Muro, Adie Tomer,
Ranjitha Shivaram, Joseph Kane
April 2019
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 1
2 BROOKINGS METROPOLITAN POLICY PROGRAM
Table of contents Executive summary 4 Introduction 6 Defining occupations in the clean energy economy transition 8 Methodology 11 Findings 13 Implications 29 Conclusion 33 Appendix A: Detailed Methodology 34 Endnotes 40
Executive summar y
T he transition to a clean energy economy
continues. Motivated by mounting scientific
evidence, shifting market forces, and in some
Focused squarely on the workforce side of the
clean energy transition, this analysis intends to
help energy-sector professionals, state and local
cases policy, U.S. industries have responded by policymakers, regional education and training-
installing more zero-carbon energy sources, sector leaders, and community organizations
developing more energy-efficient products, get a clearer look at the nature, needs, and
and adopting more environmentally-sensitive opportunities associated with the future clean
standards. More recently debates have broken out energy workforce. In particular, this analysis aims
in Congress over the need for an ambitious Green to explore the extent to which such occupations
New Deal centered on clean energy economy will offer inclusive pathways to economic
employment. As a result, shifts in “green jobs,” opportunity.
carbon emissions, electricity consumption, and
resilience to climate shocks have become some Using federal datasets and industrial
of the highest-profile, most-debated trends of the classifications from prior clean energy economy
decade. research, this report finds that:
While much has been written about all of those ►► The transition to the clean energy
topics, considerably less attention has been paid economy will primarily involve 320 unique
to how all this intersects with the workforce. Over occupations spread across three major
the years, assessments of the “clean” or “green” industrial sectors: clean energy production,
economy have often focused on “sizing” the energy efficiency, and environmental
sector by counting associated jobs under various management. These occupations represent
clean energy activities. These counts are vital, a range of workplace responsibilities, from
confirming the extent of the country’s energy jobs unique to the energy sector to support
evolution. Yet they tell us little about the nature services found throughout the broader
of work and the occupations necessary to deliver economy.
a functional clean energy economy moving
forward.
4 BROOKINGS METROPOLITAN POLICY PROGRAM
►► Workers in clean energy earn higher and and technical skills than the average
more equitable wages when compared to American job. Conversely, knowledge
all workers nationally. Mean hourly wages and skill requirements in environmental
exceed national averages by 8 to 19 percent. management occupations trend towards
Clean energy economy wages are also more national averages.
equitable; workers at lower ends of the
income spectrum can earn $5 to $10 more per ►► The clean energy economy workforce is
hour than other jobs. older, dominated by male workers, and
lacks racial diversity when compared to
►► Even when they have higher pay, many all occupations nationally. Fewer than
occupations within the clean energy 20 percent of workers in the clean energy
economy tend to have lower educational production and energy efficiency sectors are
requirements. This is especially true within women, while black workers fill less than ten
the clean energy production and energy percent of these sector’s jobs.
efficiency sectors, which include sizable
occupations like electricians, carpenters, and These results confirm the transition to a clean
plumbers. Roughly 50 percent of workers energy economy could help address economic
attain no more than a high school diploma yet inclusion challenges from the national to the
earn higher wages than similarly-educated local level. However, the current roster of workers
peers in other industries. in related occupations is far from inclusive—
suggesting the existence of distinct barriers
►► Occupations within the clean energy to access that require additional attention and
production and energy efficiency sectors action.
tend to require greater scientific knowledge
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 5
I. Introduction
T he U.S. economy is in the midst of a dramatic
energy transition.
Consumers are changing their behavior and
increasingly seeking greener alternatives as new
products flood the marketplace. Businesses are
In the face of a changing climate, rising sea levels, launching new innovations, shifting production
and various national security concerns, market schedules, and bringing cleaner products and
forces—assisted by public policy—continue to shift services to the market to serve them. And
key portions of the American economy away with the recent promotion by climate activists
from carbon-intensive, fossil fuel driven activities of an ambitious Green New Deal, fiery policy
toward cleaner, more efficient, and higher-output debates have broken out in Congress over the
ones, especially through greater energy efficiency need for investments in clean-energy jobs and
and more use of renewable energy sources. infrastructure.1
6 BROOKINGS METROPOLITAN POLICY PROGRAM
As a result, big changes in consumption patterns, Building on existing definitions of the clean
manufacturing processes, the power sector, energy sector, this report first moves to classify
and regulatory affairs—all related to the shift to the broad range of occupations implicated in
reduced carbon emissions—have become some of this economy-wide transition and employ a novel
the highest-profile, most-debated trends of the methodology using Bureau of Labor Statistics
decade. and O*NET data to characterize the individuals
who currently fill those positions.3 The analysis
While much has been written about all of those then uses the earnings, educational background,
trends, less attention has been paid to how all skills development, and demographics of this
this intersects with the American workforce—even workforce to characterize how inclusive the future
though “green jobs” lie at the center of the Green clean energy economy is likely to be. Finally, the
New Deal vision. This is a gap in the debates, report concludes with top-line implications for the
given that the clean-energy transition impacts businesses, workforce development organizations,
and crucially depends on having an appropriately and government actors who will help develop the
skilled workforce to carry out the wide range clean energy economy workforce.
of activities associated with this economy-wide
effort. These activities range from assembly- The resulting analysis projects great promise
line laborers to manufacture energy-saving for the U.S. labor market and household
products, tradesman to construct energy-efficient opportunity as the clean energy economy
buildings, or technicians to operate renewable transitions continues to push forward. Yet
energy facilities. The continued expansion of the delivering economy-wide prosperity based on the
American clean energy sector may well have inclusive nature of many clean energy economy
significant implications for the American labor occupations will require a more concerted effort
market, education and training institutions, to ensure all individuals can fill these jobs.
and the need to locate more durable, family-
supporting jobs with limited barriers to entry
at a time of widening income inequality and a
shrinking middle class.
Yet, it has been hard to get a clear sense of the
labor market opportunities that are emerging
during this transition. With more attention
focused on demonstrating the size and growth
of today’s clean energy economy industries,
much less research has drilled down on the
characteristics of the occupations involved in
the transition. And most research has not closely
examined the skills required for such jobs or the
demographic and educational profile of those who
fill them; one notable exception is a recent UC
Berkeley study examining diversity in California’s
clean energy workforce.2
Focused squarely on the workforce side of the
clean energy transition, the following analysis
is intended to help energy-sector professionals,
state and local policymakers, regional education
and training-sector leaders, and community
organizations get a clearer look at the nature,
needs, and opportunities associated with the
future clean energy workforce.
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 7
II. Defining occupations in the clean
energy economy transition
T he energy-related economy already leaves
a sizable footprint on the labor market.
More than 3.6 million workers are employed
Staffing all these industries entails a broad
assortment of occupations. Energy-related
industries are typified by a need for skilled trades
in traditional energy jobs—focused on energy to help manufacture advanced products, execute
production, transmission, distribution, and large-scale construction projects, research and
storage—but this is just one small slice of the develop new technologies, and deliver other
millions of jobs in utilities, product manufacturing, detailed STEM-related services.5 At the same
construction, and environmental regulation time, businesses within these industries rely on
that compose the full suite of energy-related an expansive suite of support services—including
activities.4 business, financial, and customer management—to
compete.6 Likewise, government and nonprofit
organizations rely on specially trained workers to
execute their missions.7
8 BROOKINGS METROPOLITAN POLICY PROGRAM
Considering that many of today’s industries
that contribute to dirtier activities will become
central to tomorrow’s clean energy economy,
defining clean energy economy occupations
means looking much wider than just the newest
green occupations. Solar photovoltaic installers
and wind turbine service technicians are central
to delivering an economy that runs on zero
carbon fuels, but an economy-wide transition
to a cleaner future must also include jobs like
construction managers, electricians, office clerks,
and agricultural inspectors.
The clean energy economy is about more than
today’s green workers; it’s about the enormous
range of occupations implicated in the long-run
transition. Knowing more about these workers will
help in supplying a capable workforce to support
the shift.
and quality of clean energy economy occupations.
Correctly identifying the scope of the clean It starts by using foundational research.
energy economy also matters because it could
help address some of the country’s central Following the Great Recession of 2008 and
economic challenges. Widening income inequality the remarkable growth in federal clean energy
and a shrinking middle class pose an enormous economy efforts, there was a flurry of national
macroeconomic challenge, particularly when it and regional research efforts to characterize
comes to identifying and supporting well-paid the potential for employment in the “clean” or
jobs available to all types of workers, including “green” economy. The primary objective of these
those without a four-year degree.8 Furthermore, early efforts was to quantify the number of jobs in
as many communities and local workers are the clean energy economy. At the national scale,
struck by job losses from automation9 and path-breaking efforts included Pew’s 2009 “Clean
trade,10 they increasingly need to retrain to gain Energy Economy” report,12 the 2010 Bureau of
new skills to stay competitive in the modern Labor Statistics’ (BLS) Green Jobs Initiative,13
global marketplace.11 This deep set of inclusion Eurostat’s 2009 environmental economy
challenges leaves the country and its local estimates,14 and the 2011 Brookings report,
economies eager to find careers that offer long- “Sizing the Clean Economy.”15 The Department of
term durability, living wages, and limited barriers Energy continued this effort by including clean
to entry. energy economy measures within their broader
2016 and 2017 “U.S. Energy and Employment”
This is where the relationship between reports.16 More recent analyses from the National
macroeconomic prosperity challenges and the Association of State Energy Officials and the
clean energy transition comes into focus. If the Energy Futures Initiative expanded on these
clean energy economy offers inclusive pathways earlier studies to examine employment trends in
to opportunity—meaning all segments of society particular industries and occupations throughout
can access jobs that enable upward economic the energy sector.17
mobility—then securing a more resilient planet will
also help secure a more resilient economy. It also Several other national-level reports quantified
allows proponents of a more sustainable future to specific segments of the clean energy economy—
make economic arguments more forcefully. for example, The Solar Foundation’s annual
“National Solar Jobs Census” and the American
To capture the full range of occupations involved Wind Energy Association’s “U.S. Wind Industry
in the clean energy economy transition, this Annual Market Report”—and still more researchers
report uses a new approach to judge the nature attempted to characterize the national clean
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 9
energy economy using survey methodologies. those labor market opportunities. To that end,
Within this flurry, numerous state-level efforts this analysis is interested in the degree to which
by business trade associations, state industry the clean energy economy provides labor market
associations, utility entities, and public agencies opportunities for historically disadvantaged
sought to capture the clean labor market within groups, with a particular focus on equity.21
their borders.
Given this rich body of past work, the present
study adopts key definitions and sector KEY TERMS:
segmentations found throughout the existing
literature to structure a new look at clean energy Industries: Groups of establishments
occupations. The report then uses two critical that provide similar goods or services, as
definitions to capture the range of relevant determined by the 2012 North American
industries and to delineate the occupations Industry Classification System (NAICS). Private
essential to them: and government owned establishments are
included, while agricultural establishments and
• Clean energy is energy not derived from private households are excluded.
fossil fuels. Clean energy sources include
hydroelectric, nuclear, solar, wind, geothermal, Clean energy economy industries: Industries
biomass, and other (e.g., tidal).18 that provide services closely linked to at least
one of the three major clean energy economy
• Clean energy economy jobs are jobs categories.
that will be involved in (1) the production,
transmission and distribution of clean energy; Occupations: The activities that employees
(2) increasing energy efficiency through the regularly carry out for pay, which are grouped
manufacturing of energy-saving products, the into distinct categories on the basis of similar
construction of energy-efficient buildings, and job duties as outlined in the 2010 Standard
the provision of services that reduce end-use Occupation Classification (SOC) system.22
energy consumption; or (3) environmental In total, there are more than 800 detailed
management and the conservation and occupations found across all industries.
regulation of natural resources.
Occupations in the clean energy economy:
These definitions attempt to address some of Occupations with an above-expected share of a
the thorniest issues in clean energy economy clean energy economy industry’s employment
research. While there is continual disagreement relative to the given occupation’s share of total
about whether energy sources like nuclear national employment.
power, natural gas, coal with carbon capture and
sequestration, and others should be considered Wages: Based on straight-time, gross pay
“clean,” this definition provides a specific list over a standard work period, as defined in the
of generating sectors.19 Second, since few job Occupational Employment Statistics (OES)
classifications are solely “clean” based on current survey. These include tips, production bonuses,
industry and occupational definitions by the U.S. cost-of-living allowances, and over-the-road pay
Bureau of Labor Standards and the Occupational based on mileage. However, overtime pay, back
Employment Statistics program, these definitions pay, and holiday bonuses are among the types
allow flexibility to qualify occupations over time. of compensation excluded.23 Wages include
As industries respond to consumers, regulations, mean hourly and annual pay, but also percentile
and markets, some new green occupations will be wages (10th, 25th, 50th, 75th, and 90th). The
created, other existing occupations will transform latter are based on the percentage of workers
and become cleaner in their activities, and some who earn wages below a certain value. For
traditional energy jobs will be lost.20 instance, if $9.00 represents the 10th percentile
wage for a given occupation, this means that 10
Finally, it is not enough to simply delineate what a percent of workers employed in the occupation
clean energy economy occupation is; it’s equally earn less than this amount.
important to determine which workers can access
10 BROOKINGS METROPOLITAN POLICY PROGRAMIII. Methodology
M ost past studies of jobs in the clean energy
economy relied on two primary approaches:
(1) a firm-level24 identification of “green” or
Due to the expansive number of potential clean
energy economy occupations, we rely on 2016
employment data publicly available from the U.S.
“clean” jobs using proprietary datasets; or (2) a Bureau of Labor Statistics (BLS) Occupational
survey-based approach wherein the researchers Employment Statistics (OES) program and
extensively survey firms within industries Employment Projections (EP) program.26 Based
identified as critical to the clean energy economy on our definition, we classify the clean energy
in order to determine the extent to which those economy in terms of occupations and industries,
industries are involved in “clean” or “green” regardless of the ownership or output associated
activities. From the perspective of clean energy with individual establishments.
industries centered on specific technologies, such
as solar energy or wind energy, past studies also
relied on surveys, input-output models, or value
chain-based approaches.25
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 11First, we establish a list of industries that are We qualify occupations in each clean energy
critical to the transition to a clean energy economy sector with a CQ value of at least 1 in the
economy by drawing primarily on industries given sector, or those occupations with a higher
identified in the Department of Energy’s 2017 than expected concentration. This threshold
“U.S. Energy and Employment Report,” the UCLA yields lists of 113, 172, and 186 occupations for
Luskin Center’s report on “Understanding the clean energy production, energy efficiency, and
Green Economy in California,” the BLS green environmental management sectors, respectively.
jobs survey, and Brookings’s “Sizing the Clean Some occupations are found within multiple
Economy” report. This core list of identified sectors. To be clear: the CQ is not a job count,
industries is diverse and encompasses a wide nor does a higher CQ suggest a given occupation
range of activities relevant to the clean energy is any more important to the clean energy
economy.27 In order to meaningfully identify and transition.
categorize critical occupations in these industries,
we put closely related groups of industries into Further, for governmental occupations (which are
three broad clean energy economy sectors, mostly concentrated in the third clean energy
similar to many of the aforementioned reports: economy sector of environmental management),
OES’s occupational data is highly aggregated
• Clean energy production: includes clean and therefore limits our ability to differentiate
energy generation, transmission, and governmental occupations heavily involved in
distribution the clean energy economy. This is a typical issue
in such industrial-occupational analyses, and
• Energy efficiency: includes manufacturing our response is to conduct a thorough manual
of energy-efficient products, construction of review of governmental occupations that qualify
energy-efficient buildings, and provision of via our above methodology to confirm that they
energy efficiency services are relevant to the clean energy economy.28 We
also verify this smaller list with occupation lists
• Environmental management: includes identified from prior reports.
environmental management, conservation,
and regulation Finally, in order to explore the inclusivity of
qualifying occupations and their sectors in total,
We then examine the specific types of positions we look at data on six key indicators drawn from
within these three sectors. In particular, we a variety of publicly available data sources from
identify all the occupations within each clean the U.S. Bureau of Labor Statistics and the U.S.
energy economy sector based on a concentration Census Bureau (Table 1). It is important to note
quotient (CQ), which studies how much a given that these indicators do not always provide
occupation concentrates within each of the three industry-specific data for a given occupation;
clean energy economy sectors. The concentration for instance, we cannot see how knowledge and
quotient formula is: skills vary for electricians in these industries vs.
electricians in all industries nationally. In turn,
Occupation’s share of sectoral employment each of the relevant metrics is calculated by
CQ = taking a weighted average based on total sectoral
Occupation’s share of national employment employment of qualifying occupations.
For more detail on the report’s methodology,
including a list of qualifying industries, see
Appendix A.
TABLE 1
Key metrics and data sources
Metric Data source
Wages Occupational Employment Statistics (OES)
Knowledge and skills Occupational Information Network (O*NET)
Demographic characteristics of the employed population:
Current Population Survey (CPS)
gender, race, and age
Educational qualifications by occupation; Projected growth of
Employment Projections (EP) program
jobs in this sector
Variation in inclusivity between “clean” and “dirty” energy
All of the above
generation activities
12 BROOKINGS METROPOLITAN POLICY PROGRAMIV. Findings
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 13FINDING 1 concentrate in this sector. In addition, the sector
employs large numbers of office clerks, general
The transition to the clean energy economy and operations managers, and other business
will primarily involve 320 unique occupations operations specialists.
spread across three major industrial sectors:
clean energy production, energy efficiency, and Energy efficiency. The transition to the clean
environmental management. energy economy necessitates the manufacturing
of more energy-efficient products, from home
The transition to a clean energy economy appliances to motor vehicles. At the same time,
implicates a wide range of industries. Most the country’s building stock, which is responsible
visible are the generation utilities themselves.29 for nearly 30 percent of all energy consumption,
Often overlooked, however, are the electrical will need to use energy more efficiently.31 Overall,
grid component manufacturing and construction this diverse set of manufacturing, construction,
that bring energy to people’s homes, businesses, and service provisions employs a wide range
and other activity centers. Equally vital are the of skilled trades (like electricians and HVAC
various manufacturing, construction, and service mechanics), STEM-trained specialists (like
industries that help create more energy-efficient architects and civil engineers), and business
products. Finally, the wide range of conservation experts (like cost estimators and accountants).
firms, waste management entities, and other
government agencies that help monitor and clean Environmental management. Efforts to better
the natural environment. manage and regulate the environment, reduce
greenhouse gas emissions, mandate efficient
Workers are central to the effectiveness of each energy use, and conserve natural resources are
of these diverse industries, ranging from activities critical to this transition. Waste management and
that are wholly unique to the clean energy treatment is a large part of such efforts, including
economy to support services that are found workers like refuse and recyclable material
throughout the economy. Based on our measure collectors and wastewater treatment plant
of concentration, some 320 unique occupations operators. Conservation scientists, environmental
are essential to these qualifying industries, many engineers and technicians, and urban planners
of which concentrate across multiple industries also play a big role. Finally, lawmakers, regulators,
involved in the country’s clean energy transition.30 and other jobs related to judicial activities are
These occupations are not just involved in responsible for the legal dimensions related to
activities that are already clean, but carry out the built and natural environments.
tasks that could contribute to a cleaner economy
over time. Collectively, 113 different occupations are found
under clean energy production and account for
This report places these occupations into three about 1.3 million workers; 172 occupations are
buckets—or sub-sectors—of the clean energy found under energy efficiency and account for
economy, and Table 2 below highlights the most about 4.4 million workers; and 186 occupations
concentrated occupations under each. are found under environmental management and
account for about 877,000 workers. As noted
Clean energy production. This sector not only previously, some occupations are found across
concentrates workers involved in actual energy multiple sectors, making it difficult to determine
production—such as power plant operators a specific total for the clean energy economy as a
and wind turbine technicians—but also workers whole. In turn, the individual sector totals – of 113,
involved in the construction, operation, and 172, and 186 occupations – amount to a smaller
maintenance of the electric grid, such as power set of unique occupations.
line installers and repairers, electricians, solar
photovoltaic installers, and utility meter readers. Rather than sizing the entire clean energy
Workers who manufacture components critical economy, this analysis is primarily concerned with
to the production of clean energy, such as wind examining how inclusive these occupations can be
turbines, transformers, storage batteries, also within each of the three individual sectors, which
the following findings describe in greater depth.
14 BROOKINGS METROPOLITAN POLICY PROGRAMTABLE 2
Most concentrated occupations, by clean energy economy sector, 2016
Concentration
Sector Occupation Quotient (CQ)
Helpers--electricians 81.9
Electricians 65.9
Electrical power-line installers and repairers 62.7
Nuclear power reactor operators 56.0
Power plant operators 48.2
Clean energy
production Electrical and electronics pepairers, powerhouse, substation, and 47.9
relay
Nuclear technicians 44.4
Wind turbine service technicians 43.0
Power distributors and dispatchers 42.0
Telecommunications line installers and repairers 35.2
Helpers--roofers 27.0
Roofers 26.4
Helpers--pipelayers, plumbers, pipefitters, and steamfitters 23.1
Plumbers, Pipefitters, and Steamfitters 21.5
Heating, air conditioning, and refrigeration mechanics and installers 20.0
Energy efficiency
Sheet metal workers 18.7
Helpers--carpenters 15.8
Carpenters 14.9
Solar photovoltaic installers 14.9
Construction managers 14.5
Hazardous materials removal workers 68.4
Refuse and recyclable material collectors 62.1
Septic tank servicers and sewer pipe cleaners 46.2
Plant and system operators, all other 11.9
Environmental Conservation scientists 11.0
management Environmental engineering technicians 10.7
Water and wastewater treatment plant and system operators 9.8
Forest and conservation workers 9.7
Legislators 9.3
Fish and game wardens 9.3
Note: Concentration quotient (CQ) reports how much more likely a given occupation is to be found in the given
sector’s industries than across all national industries.
Source: Brookings analysis of Occupational Employment Statistics data
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 15FINDING 2 income spectrum. As it stands, workers at the
10th percentile across the entire economy—or the
Workers in clean energy occupations earn lowest decile of all earners—typically earn just
higher and more equitable wages when $9.27 per hour. In contrast, workers at the 10th
compared to all workers nationally. percentile in the three clean energy economy
sectors earn $5 to $7 more per hour (Figure 2).
Decades of wage stagnation, especially among Even larger wage premiums exist for workers at
low- and middle-skill jobs, have created deep the 25th percentile: The national hourly wage is
fissures within the U.S. economy. Fortunately, jobs just $11.60 at this percentile, but clean energy
within the clean energy economy offer a potent economy occupations pay $7 to $10 more per
antidote to the country’s inclusion challenges. hour. At these compensation levels, even the
lowest-paying clean energy economy jobs can
Positions across all three sectors in the clean offer a living wage in many corners of the country.
energy economy offer substantial wage
premiums. For example, the average wage While the earnings floor is significantly higher
under each of the three sectors exceeds the for clean energy economy jobs, their competitive
national average ($23.86) by at least $2 per hour, pay also extends to those workers earning higher
including wage premiums of nearly $5 per hour wages. Clean energy economy workers earn more
within the clean energy production sector (Figure at the median compared to all workers nationally,
1). The hourly differences between a clean energy and the 75th percentile of clean energy economy
economy occupation and one elsewhere in the workers earn more as well. It’s not until the 90th
economy can equate to a raise between 8 and 19 percentile—where hourly wages equate to over
percent, if not more. $95,000 in annual earnings—that these wage
premiums end. Put simply, clean energy economy
Even more importantly, the clean energy economy employment offers a competitive pay floor to
offers higher pay to workers at lower ends of the many workers.
FIGURE 1
Mean hourly wages by clean energy economy sector, 2016
$30
$28.41
$27.45
$25.90
$25
$23.86
National
average
$20
Clean energy production Energy efficiency Environmental management
Source: Brookings analysis of Occupational Employment Statistics data
16 BROOKINGS METROPOLITAN POLICY PROGRAMFIGURE 2
Percent hourly wages, by clean energy economy sector, 2016
$50.00
Clean energy production
$45.00 Energy efficiency
$40.00 Environmental management
National
$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$0.00
10th percentile wage 25th Median wage 75th 90th
Source: Brookings analysis of Occupational Employment Statistics data
FIGURE 3
Share of all occupations by mean hourly wage, clean energy economy occupations and all national
occupations, 2016
Over $80/hr
$75-80/hr Clean energy occupations All occupations
$70-75/hr
$65-70/hr
Average income range
$60-65/hr
$55-60/hr
$50-55/hr
$45-50/hr
$40-45/hr
$35-40/hr
$30-35/hr
$25-30/hr
$20-25/hr
$15-20/hr
Under $15/hr
35% 25% 15% 5% 5% 15% 25% 35%
Share of occupations
Source: Brookings analysis of Occupational Employment Statistics data
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 17A major driver of higher pay within the clean easily the most common occupation within the
energy economy, meanwhile, is the relative clean energy production sector, as they are
absence of low-paying jobs (Figure 3). Looking essential to both power plant operations and
strictly at average wages, less than 4 percent grid functionality. As such, workers in this skilled
of all clean energy economy occupations pay trade earn more than $14 and $18 per hour at the
under $15 per hour, while nearly one-third of all 10th and 25th percentiles within the sector, and
occupations nationally pay an average wage of their pay at the median and 75th percentile also
less than $15 per hour. Instead, the clean energy exceeds national averages. Plumbers, pipefitters,
economy offers a considerably wider band of and steamfitters—the skilled trades that employ
middle-income jobs that pay between $20 and the most workers under the energy efficiency
$35 per hour. Again, this kind of higher-earning sector—earn almost the exact same wages as
floor helps set up workers for stronger immediate electricians. Meanwhile, refuse and recyclable
and lifetime earnings when they participate in the material collectors are among the most common
clean energy economy. workers under the environmental management
sector. These jobs present little barriers to entry
Some of the clean energy economy’s largest but still pay higher amounts at the 10th and 25th
occupations demonstrate this “high floor, percentile compared to all jobs nationally.
competitive ceiling” effect. Electricians represent
FINDING 3 this distinction. Yet even more striking are the
advanced education statistics: fewer than 17
Even when they have higher pay, many percent of clean energy production and energy
occupations within the clean energy economy efficiency workers hold a bachelor’s degree
tend to have lower educational requirements. or more, suggesting a 4-year degree is rarely
required to secure the higher pay available in
The disappearance of good-paying jobs for those sectors. By contrast, far more clean energy
workers without college or advanced degrees—and production and energy efficiency workers either
especially the loss of middle skill jobs—is a major hold associate degrees or have completed only
concern related to growing income inequality some college, suggesting applied skills training is
across the country.32 However, as the prior often more important in those positions.
finding demonstrated, the clean energy economy
offers competitive wages even to those workers Even with lower levels of educational attainment,
earning the lowest relative pay within their though, clean energy economy workers still
given occupation. Workers in the clean energy earn competitive wages. For example, Figure 5
economy tend to have less formal education than shows the median annual wages for clean energy
all workers nationally, filling jobs that boast an economy occupations versus those across the
alluring mix of higher-pay and lower barriers to entire economy. While both groups demonstrate
entry. a relatively strong relationship between pay and
education, clean energy economy workers with
Levels of educational attainment for these a high school diploma or less stand out; they
workers are especially low within the clean energy consistently earn higher median pay, especially
production and energy efficiency sectors (Figure when compared to workers with similar education
4). Workers with no more than a high school backgrounds employed across the entire
diploma fill over half of all energy efficiency economy. This is clear visual evidence of the
occupations, while 45 percent of workers in higher income floor for clean energy economy
clean energy production occupations share workers.
18 BROOKINGS METROPOLITAN POLICY PROGRAMFIGURE 4
Educational attainment by workers in clean energy economy sectors, 2016
60%
50%
40%
30%
20%
10%
0%
High school or less Some college / Associate degree Bachelor’s degree or more
Clean energy production Energy efficiency Environmental management National
Source: Brookings analysis of Occupational Employment Statistics and Employment Projections data
FIGURE 5
Median annual wages by share of workers with a high school diploma or less, clean energy economy
occupations and all national occupations, 2016
$250,000 All occupations Linear R² = 0.3609
Clean energy economy occupations Linear R² = 0.4435
$200,000
Median annual wage
$150,000
$100,000
$50,000
$0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Share of workers with a high school diploma or less
Note: The R2 value here helps determine the level of variation in pay explained by educational attainment. A higher
R2 shows the wages that clean energy economy workers earn are explained more by their levels of educational
attainment.
Source: Brookings analysis of Occupational Employment Statistics and Employment Projections data
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 19With that said, the aggregate statistics mask Nearly half of all workers in the clean energy
considerable variation within each of the production and energy efficiency sectors, for
three clean energy economy sectors. Figure instance, have at least one month of on-the-job
6, for instance, highlights some of the major training. This also includes a sizable percentage of
occupations where workers can differ in their workers who have at least one year of on-the-job
educational backgrounds. Although workers in training or engage in apprenticeship programs,
engineering occupations tend to have advanced including electricians, plumbers, and others
degrees—regardless of their sector—workers involved in the construction trades. Effectively,
employed as office clerks, sales representatives, these training statistics confirm that these two
and in other common support occupations tend clean energy economy sectors tend to emphasize
to have a high school diploma or applied post- applied learning opportunities to achieve
secondary training. This variation speaks to the occupational preparedness.
wide range of tasks and educational backgrounds
found across the clean energy economy, with Similar to all occupations nationally, those in
many potential career pathways available to the environmental management sector tend
prospective workers. to require less on-the-job training; more than
three-quarters of workers in this sector have no
Going to school, of course, is only one way to more than one month of on-the-job training. The
prepare for a job. Another is by learning on the need for formal education in these positions,
job, and many clean energy economy positions especially post-secondary education, shows that
depend on workers who develop experience many workers must still engage in more formal
and competencies through on-the-job training.33 classroom instruction and training.
FIGURE 6
Educational attainment, by share of employment in selected occupations, 2016
High school or less Some college / associate degree Bachelor’s degree or more
Clean energy
Wind turbine service technicians
Power plant operators
Electrical engineers
Energy efficiency
Helpers-electricians
Surveying and mapping technicians
Environmental engineers
Environmental management
Refuse and recyclable material collectors
Water and wastewater treatment plant and system operators
Physicists
0% 20% 40% 60% 80% 100%
Source: Brookings analysis of Occupational Employment Statistics and Employment Projections data
20 BROOKINGS METROPOLITAN POLICY PROGRAMFIGURE 7
On the job training, by share of employment in qualifying occupations, 2016
None Less than 1 month 1-to-12 months Over 1 year Apprenticeship / internship
All occupation average
Environmental management
Energy efficiency
Clean energy production
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: Brookings analysis of Occupational Employment Statistics and Employment Projections data
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 21FINDING 4 This is also true in reverse: workers in clean
energy production and energy efficiency tend
Occupations within the clean energy to have lower knowledge scores in many of the
production and energy efficiency sectors tend same content areas. The content areas with the
to require greater scientific knowledge and lowest relative scores tend to relate to liberal arts,
technical skills than the average American job. including psychology, medicine and dentistry, and
fine arts. These lower knowledge requirements
While many workers in the clean energy economy are just one more demonstration of how more
tend to have less formal education and more advanced education, especially the broader
on-the-job training, that is only one signal of the programming used in a university setting, is not
requirements for related occupations. Another essential for many occupations within the clean
important indicator are the specific knowledge energy economy.
and skills that workers must bring to their
respective jobs to successfully carry out their By contrast, environmental management
tasks. occupations tend to demand similar types of
knowledge as all occupations do nationally,
This analysis uses O*NET to gauge the “level” with a few notable differences. Knowledge of
of knowledge and skills that workers in each of law and government and Clerical are especially
the three clean energy economy sectors need high, reflecting the regulatory responsibilities
to perform their expected job duties. Knowledge and paperwork duties flowing through that
levels are determined across 33 different content portion of the clean energy economy. Likewise,
areas—from physics and biology to mathematics environmental management jobs tend to
and design.34 Skill levels are determined across 35 have lower requirements. Figure 8 charts
different categories—from reading comprehension the knowledge deviations for all three clean
to writing. These levels are rated from 0 energy economy sectors versus all national
(minimum) to 7 (maximum) based on worker occupations, ranking each category from the
questionnaires, meaning small quantitative smallest to largest differences. The environmental
jumps in knowledge and skill levels can represent management line clearly sticks closer to the zero-
significantly more understanding of a given topic. axis representing all jobs.
Clean energy economy workers often need Switching to skills, occupations in the clean
more knowledge in content areas with a clear energy production and energy efficiency sectors
scientific component. And given the lower levels require more technical skills than the average
of education attainment for workers in most clean job. O*NET codes 8 of the 35 skill categories
energy economy occupations, workers usually as “technical,” including installation, repairing,
develop general scientific and STEM-specific troubleshooting, and quality control analysis.
knowledge through applied training. These technical skills confirm that clean energy
production and energy efficiency occupations
Scientific knowledge demands are especially tend to make extensive use of machines
high for occupations within the clean energy and technological systems. Similarly, these
production and energy efficiency sectors. Jobs occupations also tend to have higher scores
in these sectors are likely to require higher in management of both material and financial
knowledge in three distinct areas—building and resources, indicating the need for thoughtfully
construction, mechanical, and design—where managing both equipment and financial business.
scores are at least 1 point higher than the national Once again, the environmental management
average. Knowledge of STEM-specific content sector looked more like national occupational
like physics, mathematics, engineering, and averages. Figure 9 shows how most skills in
technology is also highly recommended in these environmental management occupations stay
two clean energy economy sectors. Even with close to the national occupation average.
some differences, Table 3 confirms that these two
sectors have a lot in common.
22 BROOKINGS METROPOLITAN POLICY PROGRAMTABLE 3
Occupations’ knowledge score, by national average and clean energy economy sector, 2016
Average score Average
Average acrossoccupations
across occupationsby
bysector
sector
Average score
O*NET
O*NETknowledge
knowledgearea
area across all
across all Cleanenergy
Clean energy Energy Environmental
Energy efficiency Environmental
occupations
occupations production
production efficiency management
management
Mechanical 2.4 4.0 3.7 2.2
Building and construction 1.4 2.7 2.8 1.6
Engineering and technology 2.1 3.5 3.3 2.3
Design 1.9 3.1 3.2 2.0
Physics 1.6 2.7 2.4 1.8
Production and processing 2.2 2.9 3.0 2.0
Mathematics 3.3 3.7 3.7 3.6
Public safety and security 2.5 2.9 2.7 2.9
Chemistry 1.9 2.3 2.3 1.9
Transportation 1.8 2.1 2.0 2.1
Telecommunications 1.4 1.7 1.3 1.6
Computers and electronics 3.2 3.2 2.9 3.6
Administration and
3.0 3.0 3.0 3.4
management
Geography 1.6 1.5 1.4 2.2
Economics and accounting 1.6 1.5 1.5 1.9
Food production 0.6 0.4 0.4 0.6
Education and training 3.5 3.3 3.2 3.7
Law and government 2.2 2.0 1.9 2.9
Personnel and human resources 2.2 2.0 2.0 2.6
Foreign language 1.0 0.7 0.8 1.1
Biology 1.3 1.0 0.9 1.5
Clerical 2.9 2.5 2.4 3.4
History and archeology 0.9 0.5 0.6 1.1
Sales and marketing 2.0 1.6 1.8 1.9
English language 3.7 3.3 3.3 4.0
Fine arts 0.6 0.2 0.4 0.4
Medicine and dentistry 1.2 0.8 0.7 1.1
Communications and media 2.1 1.7 1.6 2.4
Customer and personal service 3.8 3.3 3.2 4.1
Therapy and counseling 1.4 0.8 0.7 1.5
Philosophy and theology 1.3 0.7 0.7 1.4
Psychology 2.4 1.8 1.7 2.7
Sociology and anthropology 1.6 0.9 0.9 1.9
NOTE: Knowledge Areas listed in order of the largest differences between clean energy production and all occupations
Source: Brookings analysis of Occupational Employment Statistics and O*NET data
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 23FIGURE 8
Differences in knowledge score across 33 knowledge areas, clean energy economy sectors, 2016
2.5
Clean energy production
2
Knowledge level difference
1.5
Energy
1 efficiency
0.5
Environmental
All occupation average management
0
-0.5
-1
Note: For each clean energy economy sector, knowledge areas ordered independently based on largest negative to
largest positive scores; the chart effectively measures deviation from the all occupation average in each of the 33
knowledge content areas. Due to space limitations, the 33 knowledge categories are not individually shown on the
chart’s X axis
Source: Brookings analysis of Occupational Employment Statistics and O*NET data
FIGURE 9
Differences in skills score across 35 skill categories, clean energy economy sectors, 2016
2
Clean energy production
1.5
Skill level difference
1 Energy
efficiency
0.5
Environmental
management
All occupation average
0
-0.5
-1
Note: For each clean energy economy sector, skills ordered independently based on largest negative to largest
positive scores; the chart effectively measures deviation from the all occupation average in each of the 35 skill
categories. Due to space limitations, the 35 skill categories are not individually shown on the chart’s X axis
Source: Brookings analysis of Occupational Employment Statistics and O*NET data
24 BROOKINGS METROPOLITAN POLICY PROGRAMFINDING 5 their careers later, staying entrenched in jobs
longer, or waiting longer to retire depending
The clean energy economy workforce is older, on the occupation and individual worker. When
dominated by male workers, and lacks racial looking across all three clean energy economy
diversity when compared to all occupations sectors in total, these results suggest it’s worth
nationally. investigating whether younger workers face
hidden barriers to entry that outweigh the
While it’s impressive that the clean energy reduced education requirements discussed in
economy includes so many jobs with high Finding 3.
pay and low educational barriers to entry,
judging the entire sector’s inclusivity also Far more pronounced than the age tilt is the
requires consideration of who fills those jobs. predominance of men in the sector. For example,
Unfortunately, across a series of demographic while women composed 46.8 percent of all
indicators, workers in the clean energy economy employed workers in 2016, fewer than 20 percent
continually fall short of national benchmarks of workers in the clean energy production and
of labor market inclusion. The current lack of energy efficiency sectors were women.
diversity indicates opportunities to broaden the
labor pool in the long run but is a limitation in the Nationally, there are established conversations
short-term. about the barriers women face in acquiring a job
in the skilled trades—and the skilled trades are a
To start, the clean energy economy workforce sizable portion of the clean energy economy, as
is relatively old (Figure 10). The median age evidenced by the knowledge and skills discussion
of workers in each of the three clean energy in this finding.35 But that makes it even more
economy sectors is at least as high as the national essential to assess why specific skilled trades in
median (42.2 years). In the case of environmental the clean energy economy see such low female
management workers, the gap increases by two employment, ranging from electricians (3 percent
years. This sector’s combination of stable public- female) to heavy and tractor-trailer truck drivers
sector employment and more advanced education (6 percent) to cement masons and concrete
requirements may contribute to workers entering finishers (2 percent). At the same time, many
nonskilled trades confront the same barriers,
FIGURE 10
Median age by clean energy economy sector, 2016
45.0
44.5
44.0 44.3
Median age (years)
43.5
43.0
42.5 42.7
42.2
42.0 42.2
41.5
41.0
Clean energy production Energy efficiency Environmental management
National median age
Source: Brookings analysis of Occupational Employment Statistics and Current Population Survey
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 25including general and operations managers (30 Certainly, some of these diversity trends
percent female) and cost estimators (12 percent). reflect industry-wide employment practices.
Many STEM-specific positions like engineers also Public-sector occupations that dominate the
employ below-average shares of females. environmental management sector are known for
using equal opportunity hiring and recruitment
Finally, racial diversity is lacking in many positions practices, which tend to benefit minority and
critical to the clean energy economy. The share female workers. Likewise, the relatively high
of black workers across the three clean energy share of construction work under both the clean
economy sectors typify this imbalance. On the energy production and energy efficiency sectors
one hand, black workers represent a much naturally leads to greater likelihood of Hispanic
smaller share of total clean energy production employment.
and energy efficiency employment than that of
national employment. Conversely, environment For the most part, the diversity shortfalls across
management occupations employ an above- the clean energy economy result in real economic
average share of black workers. The situation is consequences for the country’s households. When
reversed for Hispanic workers: above-average occupations with sizable employment counts, high
shares in the clean energy production and energy pay, and low barriers to entry are not being filled
efficiency sectors, but below-average employment by all demographic groups, something is amiss
in the environmental management sector. Across with either widely-used recruitment practices,
all three clean energy economy sectors, Asian specific occupation practices, or both.
employment is relatively low.
FIGURE 11
Share of female workers by clean energy economy sector, 2016
50% 46.8%
40%
39.0%
30%
20%
18.0%
10% 13.2%
0%
Clean energy production Energy efficiency Environmental management
National share of women workers
Source: Brookings analysis of Occupational Employment Statistics and Current Population Survey
26 BROOKINGS METROPOLITAN POLICY PROGRAMFIGURE 12
Racial diversity in the clean energy economy versus all occupations nationally, 2016
25%
Clean energy production
Energy efficiency
20% Environmental management
National
15%
10%
5%
0%
African American Asian Hispanic
Source: Brookings analysis of Occupational Employment Statistics and Current Population Survey
HOW INCLUSIVE ARE R&D OCCUPATIONS IN THE CLEAN ENERGY ECONOMY?
Transitioning to an economy powered by cleaner and reduced energy use demands a purposeful,
aggressive pursuit of technological innovation. Without new products, services, and regulatory
approaches to energy generation and consumption, the economy’s energy profile would be static.
Delivering on this need to innovate requires purposeful, well-funded, and patient research across
the university community, public agencies, and research-driven companies. It’s why Department
of Energy laboratories like Oak Ridge National Lab and Sandia National Labs are invaluable public
assets, and why encouragement of startup programs and innovation hubs around clean energy
technology have bridged the gap between laboratory-based research and market-ready products
and services.36
Altogether, research and development (R&D) is central to pursuit of a cleaner economy. And that
means that evaluating occupations within R&D-focused industries and specific establishments—
including on the same pay, education, and demographic components found in this paper—is an
important priority for efforts to assess the overall inclusivity of the clean energy economy.
Unfortunately, our NAICS-based approach makes it impossible to narrow R&D occupations to
only those related to energy activities. The categorization schema is simply too aggregated to
disentangle which researchers, businesspeople, and other support services are working on energy
issues and which are working on other topics. However, there is still value in reporting on pay and
education trend for research-specific industries in general. Relying on past research, therefore, we
identify several key industries here for research and technical services:
ADVANCING INCLUSION THROUGH CLEAN ENERGY JOBS 27541330 Engineering Services
541360 Geophysical Surveying and Mapping Services
541380 Testing Laboratories
541690 Other Scientific and Technical Consulting Services
541711 Research and Development in Biotechnology
Research and Development in the Physical, Engineering, and Life Sciences (except
541712
Biotechnology)
Occupations in these industries are highly paid, highly skilled, and heavily technical in nature.
Workers in these occupations have a mean hourly wage of $42.40, significantly higher than those in
any of the three other clean energy economy sectors. Workers in these occupations also have very
high levels of education: more than 60 percent of workers in these occupations have a bachelor’s
degree or more. It should come as no surprise that many of these occupations are STEM-heavy
in their knowledge and skills requirements as well. Engineering and technology, physics, design,
chemistry, and mathematics are the top five knowledge areas for these occupations, while the top
five skills are science, mathematics, operations analysis, programming, and technology design.
These data points confirm that R&D jobs—not just those limited to the clean energy economy—offer
the kind of career earnings that merit the significant upfront investment in education and skills
development. These are also relatively elite jobs, with very few top-level research positions available.
That combination makes R&D work inherently more exclusive than other aspects of the clean energy
economy. If that is the case, then addressing inclusion gaps will require starting earlier in workers’
careers. That means focusing on primary-school curriculum, university recruitment and retention,
and which demographic groups benefit from such STEM-focused programming improvements.
FIGURE 13
Levels of educational attainment in research and technical services, 2016
70%
60% 63%
50%
40%
30%
20% 25.3%
10% 11.8%
0%
High school or less Some college / Associate degree Bachelor’s degree or more
Source: Brookings analysis of BLS Employment Projections data
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