How can the UK be a more sustainable economy without more inclusion?

The UK’s green transition is often described as a win-win, good for the planet and good for new jobs, but who exactly is seeing the benefits?

Policy makers frequently present the shift to a greener economy as a chance to build a more inclusive labour market. For example, the Green Jobs Taskforce’s report describes it as a “unique opportunity to expand the talent pool and bring in people with a wider range of experiences”. But this outcome is far from guaranteed, nor is it being achieved, as many sectors continue to draw from a narrow talent pool.

As it stands, women make up just two per cent of workers in skilled trades, like construction and vehicle related work, and they are underrepresented at senior levels in the energy industry.  Considering the profile of businesses in the sector, they’ll make up just a quarter or less of the growing green economy workforce by 2030. Given existing skills shortages, this disparity is hard to ignore. Representation of Black, Asian and other marginalised ethnic groups is also disproportionally low in the vital technical sectors driving the green transition, compared with the wider workforce.

It doesn’t stop there. While jobs in green industries are disproportionately held by white men, workers in the sector who are women or from ethnically marginalised backgrounds often face pay gaps and limited progression opportunities. Research shows the green job gender pay gap is significantly higher than in non-green roles.

A combination of factors aggravates the problem
Why this situation persists isn’t straightforward, a combination of barriers are at play. One is awareness and perception of green jobs. Many of the fastest growing green roles, such as in clean power and construction, are still seen as traditionally male dominated areas, which can discourage young women from pursuing them. The UK also has some of the widest regional productivity gaps among advanced economies, leading to uneven access to jobs and training opportunities. Chasing opportunities can require relocation and, if they are poorly understood, people are much less likely to take the risk.

These challenges don’t just begin at the point of employment but are embedded much earlier in the education and training routes people take. Students from ethnically marginalised backgrounds are well represented in higher education, but not on environmental courses, and technical subjects show the same pattern. Apprenticeships in jobs covering green sectors lag on diversity, and women are underrepresented across STEM subjects, making up around 30 per cent of graduates and just 27.6 per cent of the STEM workforce. In engineering, it’s even lower, at ten per cent.

Early exposure, confidence and representation shape career choices and people pursue fields that feel more accessible and stable.

The fast growing adoption of AI in the workplace adds another dimension. As industries become more data driven, skills required are shifting. Digital and AI capabilities are becoming as important as traditional technical expertise. It has the potential to improve access to jobs through better skills matching and personalised training, but studies show AI systems trained on biased data risk reinforcing the same inequalities.

More diverse organisations outperform others
More diverse organisations outperform others financially, so inclusivity and equality of participation aren’t just nice to haves. They are essential in improving the UK’s productivity. Energy company Ørsted’s industry-led apprenticeship programmes have a proactive recruitment strategy, explicitly focused on diversity. This includes gender-neutral job advertising, outreach at careers fairs and targeted engagement with initiatives such as Women into Manufacturing and Engineering. It has broadened the pipeline of applicants into technical roles and forms part of a wider effort to increase gender balance, aiming for a 40 per cent female workforce by 2030.

Action to address the issues can’t just start at the point of recruitment. Improving access must start earlier. Providing young people with information about green careers while they are still in school can help to challenge outdated perceptions, show the breadth of roles possible, and that they can offer both meaningful and financially viable work.

With over a quarter of a million young people not in employment, education or training, green sectors have a clear opportunity to tackle this waste of talent. Unless there is a broader and more diverse pipeline of future workers, the country risks undermining both its economic potential and its climate ambitions.

Green Alliance’s latest analysis Work in progress: getting young people ready for the jobs of the 2030s was released last week.