Business Advisory
‘Investing in nature can be one of the fastest ways to protect livelihoods, raise productivity, and create jobs. Natural resources and ecosystems underpin many productive sectors, from agriculture and fisheries to tourism and renewable energy.’
Jobs and the environment are deeply interconnected. The environment shapes livelihoods, productivity, and economic transformation. 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. Compounding the jobs gap further, are 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.
Seeing the Wood and the Trees: Environment and Jobs at Scale
Investing in nature can be one of the fastest ways to protect livelihoods, raise productivity, and create jobs. Natural resources and ecosystems underpin many productive sectors, from agriculture and fisheries to tourism and renewable energy.
Reorienting development around a livable planet is therefore 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 invested than investments in more polluting industries. Healthy soils, fisheries, forests, and ecosystems sustain livelihoods across agriculture, fishing, and tourism.
Here is a snapshot of the job-generating potential across environmental ecosystem:
- The agrifood system alone employs about one third of the global workforce, with 3.2 billion people relying on food systems for their livelihoods. In low income countries, agriculture still accounts for nearly two thirds of all jobs.
- Nature based sectors support millions of workers. Fisheries and aquaculture directly employ 62 million jobs and support the livelihoods of over 500 million worldwide. Forest related activities provide jobs for 33 million people each year. Investments in nature protection can also generate strong economic returns.
- Every dollar invested in protected areas and nature based tourism can return at least six dollars. In Zambia, two national parks alone support more than 35,000 jobs, while tourism sustains 30 percent 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 worldwide. When water systems fail, livelihoods suffer. During the 2018 drought in Cape Town, for example, water shortages caused the loss of livelihoods for 20,000 agricultural workers. Strengthening water security and expanding access to clean water can therefore protect livelihoods while supporting economic growth.
Environmental Degradation is a Job Killer
While environmental systems support jobs, their degradation can also undermine them when pollution and climate shocks damage workers’ health and productivity. Pollution quietly erodes economic performance. Dirty air and water reduce worker productivity and earnings in both outdoor and indoor jobs. Pollution also affects cognition, decision making, and overall output. The damage begins early and accumulates over time. Exposure during pregnancy and early childhood can weaken human capital, lower educational attainment, and reduce lifetime earnings.
Climate shocks disrupt work more directly. Floods, droughts, and extreme heat shut down businesses and keep workers from showing up. Productivity falls when weather becomes more extreme. Climate impacts could lead to the loss of the equivalent of 260 million jobs by 2050 across low- and middle-income countries.
At the same time, adapting to climate change can create new employment opportunities. In 49 countries studied, climate adaptation investments could generate the equivalent of 25 million jobs by 2050. Across all low- and middle-income countries, this could reach 149 million jobs.
The message is clear. Growth that damages the environment also damages productivity, employment prospects and long term prosperity.
A Jobs-First Approach for Environmental Policy: Invest, Train, and Protect
A clear and practical set of policy actions can help decision-makers boost employment while also managing environmental resources. Three foundational principles apply:
First Invest Wisely: Investing in less polluting and nature-based sectors is a smart choice, generating more jobs per dollar than investments in higher polluting sectors. Forestry, fisheries, and agriculture all show strong employment multipliers across countries. Sustainable land use can also deliver lasting economic returns, not just a short-term stimulus.
Second Build Skills for a Changing Economy: Most green jobs rely on strong foundational, technical, and basic digital skills. Some roles will require targeted training rather than entirely new degrees. Roofers can become solar installers within weeks, and mechanics can learn energy efficient repair techniques with short courses. The challenge is scale. Training systems are not expanding fast enough to meet demand.
Third Protect Displaced Workers: As employment patterns shift, policymakers will need to put in place active labor market policies such as job matching and retraining, alongside income support like unemployment benefits and temporary cash transfers. Social protection systems can also help vulnerable households cope with changes.
Jobs and the environment are inseparable. The shift to a cleaner and more resilient economy can create jobs at scale, but only if countries invest in the right sectors, build the right skills, and protect vulnerable communities. If we get it right, our natural wealth could sustain livelihoods for millions.
Source: World Bank Blogs
