Jobs and the Environment: A Deeply Interconnected Relationship

Jobs and the environment are deeply interconnected. The environment shapes livelihoods, productivity, and economic transformation, while labor markets determine how societies adapt to environmental conditions. Jobs are also central to prosperity and poverty reduction, providing income, hope, and dignity.

However, over the next 10 to 15 years, about 1.2 billion young people in developing countries will reach working age, while only around 400 million jobs are expected to be created. This widening jobs gap is further compounded by environmental pressures that are already weighing heavily on livelihoods and economic potential. In many developing countries, degraded air, water, and land reduce productivity and limit opportunities for workers and businesses alike.

Investing in Nature: A Driver of Growth and Employment

Investing in nature can be one of the fastest ways to protect livelihoods, boost productivity, and create jobs. Natural resources and ecosystems underpin many productive sectors, including agriculture, fisheries, tourism, and renewable energy.

Reorienting development around a livable planet is not only possible—it is the smarter economic choice. Transitioning to cleaner and more restorative economic activities can generate new opportunities and strong returns. In fact, investments in less polluting sectors often create more jobs per dollar than investments in highly polluting industries. Healthy soils, fisheries, forests, and ecosystems sustain livelihoods across agriculture, fishing, and tourism.

Key Figures and Insights

• The agrifood system employs about one-third of the global workforce, with 3.2 billion people relying on it for their livelihoods. In low-income countries, agriculture accounts for nearly two-thirds of all jobs.
• Nature-based sectors support millions of workers. Fisheries and aquaculture directly employ 62 million people and support over 500 million livelihoods worldwide, while forest-related activities provide 33 million jobs each year.
• Investments in nature protection generate strong economic returns. Every dollar invested in protected areas and nature-based tourism can yield at least six dollars. In Zambia, two national parks support more than 35,000 jobs, while tourism sustains 30% of the working-age population near South Luangwa National Park.
• Water-dependent sectors such as agriculture, energy, and industry support about 1.7 billion jobs globally. When water systems fail, livelihoods suffer—as seen during the 2018 Cape Town drought, which led to the loss of 20,000 agricultural jobs.

Environmental Degradation: A Threat to Jobs

While environmental systems support employment, their degradation can severely undermine it. Pollution and climate shocks negatively impact workers’ health and productivity. Air and water pollution reduce earnings and performance in both outdoor and indoor jobs, and even affect cognition and decision-making. These effects begin early in life—exposure during pregnancy and childhood can weaken human capital, reduce educational attainment, and lower lifetime earnings.

Climate shocks such as floods, droughts, and extreme heat disrupt economic activity, shutting down businesses and reducing productivity. By 2050, climate impacts could lead to the loss of the equivalent of 260 million jobs across low- and middle-income countries.

At the same time, adapting to climate change presents new employment opportunities. In 49 countries, climate adaptation investments could generate the equivalent of 25 million jobs by 2050, rising to 149 million jobs across all low- and middle-income countries.

A Jobs-First Approach: Invest, Train, Protect

The evidence is clear: growth that harms the environment also undermines productivity, employment prospects, and long-term prosperity. A practical, jobs-focused environmental policy should rest on three key pillars:

• Invest Wisely: Direct investments toward less polluting and nature-based sectors, which generate more jobs and deliver sustainable returns.
• Build Skills: Equip workers with the foundational, technical, and digital skills needed for the green economy, with scalable and targeted training programs.
• Protect Workers: Support those affected by economic transitions through active labor market policies, retraining programs, and social protection systems.

Conclusion

Jobs and the environment are inseparable. The transition to a cleaner, more resilient economy can create employment at scale—but only if countries invest in the right sectors, build the right skills, and protect vulnerable communities. If done right, natural wealth can sustain livelihoods for millions around the world.

Source: World Bank