NEW DATA: Jobs in Green Economy Growing More Than Three Times Faster Than Jobs in Total Economy
Green Jobs Growing at a Rate Comparable to Software Jobs
SACRAMENTO, Calif., Jan. 19, 2011 /PRNewswire/ -- New data released today in Next 10's second "Many Shades of Green" report shows that green jobs continue to grow at a healthy clip, even in the wake of the economic crisis. From January 2008 to 2009, the most recent observable year, jobs in the green sector grew more than three times faster (three percent) than total employment in California (one percent). The Core Green Economy now accounts for 174,000 jobs in California. The rate of growth of green jobs has been similar to that of software jobs since 2005.
"The green job data is significant because these jobs are growing in every region across the state, outpacing other sectors, and generating business across the supply chain," said F. Noel Perry, founder of Next 10. "While green job numbers are modest relative to the overall economy, there are very few business sectors in a state as large as California that employ people across every region. The emergence of this vibrant Core Green Economy can be attributed to California's history of innovation, as well as our forward-looking energy and energy efficiency policies."
Released at an event at Siemens Industry's rail vehicle manufacturing facility in Sacramento, "Many Shades of Green: Regional Distribution and Trends in California's Green Economy, 2011" (http://www.next10.org/next10/publications/green_jobs/2011.html) provides a comprehensive, bottom-up accounting of California's green economy, systematically tracking the most recent available data on employment, business establishments, location, and growth across every green sector and region of California. Collaborative Economics, an economic research and consulting organization, prepared the report for Next 10, a nonpartisan research group. Siemens recently won a $466 million contract to build 70 electric locomotives in California, requiring 200 new jobs over the next 3 to 4 years at a factory that operates mostly on two megawatts of solar power. These positions are in addition to the company's newest 150 employees hired in the past two years to address America's burgeoning light rail transit market.
Report Highlights of California's Core Green Economy:
- From January 2008-09, green jobs expanded by three percent statewide, compared to a one percent increase in overall jobs.
- Between 1995 and 2009, jobs in California's Core Green Economy expanded from 111,000 to 174,000, growing 56 percent.
- From 1995 to 2009, the Energy Generation sector created the most jobs in California's Core Green Economy, adding nearly 20,000 jobs across the state and almost 3,000 jobs over the most recent observable year (January 2008-2009).
- The Bay Area and the Sacramento Area posted the strongest employment gains in the Core Green Economy, expanding by 109 percent and 103 percent respectively since 1995, followed by Orange County (67%) and the San Joaquin Valley (55%).
- The Bay Area and the San Diego Region led in green job growth over the most recent observable year, expanding by eight percent and seven percent respectively (January 2008-2009).
- While manufacturing employment represents only 11 percent of statewide employment, it represents 26 percent of all green employment. This sector increased ten percent over the most recent observable period (January 2008-2009).
- Across all green segments, employment in the installation, sales, research and development, and finance and investment sectors more than doubled in California since 1995.
"Based on our research, California is well positioned to effectively leverage emerging opportunities and lead the expansion of clean energy markets worldwide," commented Doug Henton, CEO of Collaborative Economics. "Considering that, by revenue, energy represents the largest industry in the world, California's leadership in this sector is a major factor in our future economic health."
Bay Area (p. 14)
- The Bay Area has recorded the strongest green employment gains in the state, expanding by 109 percent since 1995.
- From January 2008 to 2009, green employment in the Bay Area increased eight percent (five percent faster than the state overall) adding almost 3,500 jobs.
- The Bay Area represents 28 percent of the employment and 26 percent of the businesses in California's growing green economy.
- The Bay Area accounts for 45 percent of California's employment in the Energy Storage sector. Since 1995, employment has surged 790 percent, adding nearly 2,230 jobs. Just from 2008 to 2009, expansions yielded 580 new jobs.
Los Angeles Area (p. 16)
- The Los Angeles Area represents a significant portion of California's Core Green Economy boasting 23 percent of green employment in the state and 22 percent of green businesses.
- Green employment in the Los Angeles Area has grown 20 percent since 1995, adding 6,600 jobs to the region. This rate of growth far outpaces overall growth in the region, which was recorded at nine percent over the same time period.
- The Los Angeles Area is a hot spot for green clean transportation jobs, increasing 33 percent since 1995 and nine percent between January 2008 and 2009.
Orange County (p. 18)
- From January 1995 to 2009, green employment in Orange County increased 67 percent, adding 7,700 jobs during that time period. Orange County's green job rate is growing faster than overall jobs.
- Orange County is a leader in the Clean Transportation sector as well as the Alternative Fuels sector. With employment shares more than double the state average in the clean transportation sector, the region reflects a mounting strength in this field.
- The Energy Generation sector is powering much of Orange County's green economy and represents 18 percent of green employment, boasting nearly 3,440 jobs.
San Diego Region (p. 20)
- San Diego was considered a green jobs growth leader in the most recent observable period (January 2008-2009). Green employment in the region expanded by 6.5 percent, more than double the statewide green jobs growth rate.
- Water & Wastewater green establishments grew from under 50 to nearly 80, reflective of a 58 percent growth in this sector since 1995.
- Clean transportation sector employment growth accelerated by a factor of six to almost 580 employees between January 1995 and 2009.
Sacramento Area (p. 22)
- The Sacramento Area is a green economy growth leader. The region gained approximately 7,100 new jobs from January 1995 to 2009, reflecting a 103 percent increase over that time period.
- The Energy Generation sector brought roughly 1,900 new jobs to the region, and increased nine percent in the most recent observable period (January 2008-2009).
- The Green Building sector's employment grew by a factor of four from January 1995 to 2009 and added approximately 700 jobs.
Inland Empire (p. 25)
- Although slowing over the most recent year, green employment grew 53 percent while total employment increased 47 percent between January 1995 and 2009. During this time, approximately 4,400 jobs and over 500 business establishments were added to the region's green economy.
- The Energy Generation sector has powered much of the employment growth in the Inland Empire's Core Green Economy. Employment grew 129 percent from 1995 to 2009, adding roughly 1,500 jobs.
- In the Clean Transportation sector, the Inland Empire has become a leader in Alternative Fuels with employment shares nearly triple the statewide average.
San Joaquin Valley (p. 26)
- Although slowing in the most recent year, San Joaquin Valley's green economy expanded by 55 percent from January 1995 to 2009, producing nearly 3,360 jobs and 390 new business establishments in the region's Core Green Economy.
- The Energy Generation sector is responsible for nearly 24 percent of green employment in the San Joaquin Valley. Employment in this segment grew 113 percent (1,200 jobs) from 1995 to 2009, and establishments grew 175 percent (120 establishments).
- The largest segment of the Core Green Economy in this region is Recycling & Waste, which accounts for 24 percent of green employment. Employment in this segment increased four percent from January 2008 to 2009 and was driven almost exclusively by job growth in Recycling.
- Clean transportation sector employment more than tripled from 1995 to 2009 growing to nearly 500 jobs. With an employment concentration 50 percent above the state average, this segment represents an important regional strength.
Central Coast (p. 28)
- Green employment in the Central Coast grew three percent in the most recent reported year.
- From January 1995 to 2009, green employment expanded by seven percent and green businesses grew by 52 percent, adding approximately 170 establishments.
- Employment in the region's Energy Generation sector increased 165 percent from the start of 1995 to 2009. Energy Storage tripled in employment over this period and was mainly driven by growth related to fuel cells.
Sacramento Valley (p. 30)
- From January 1995 to 2009, green employment in the Sacramento Valley expanded 40 percent, adding approximately 1,000 jobs and outpacing growth in the total economy. Green business establishments doubled in number over the long period and increased six percent from January 2008 to 2009.
- The Sacramento Valley leads the state in the Agriculture Support sector and is a leader in the production of biofuels. Representing 46 percent of green employment in this region, Agriculture Support added roughly 330 jobs from 1995 to 2009. Employment in this segment is 23 times more concentrated than the statewide average.
North Coast (p. 32)
- Since 1995, green employment has increased 46 percent adding roughly 620 jobs, an important addition to North Coast employment, which grew only 15 percent over the same time period. Green businesses in the region have shown similar growth expanding 56 percent to nearly 290 establishments in January 2009.
- The North Coast's largest green segment, Energy Generation, accounts for 25 percent of total green employment. Since 1995, Energy Generation jobs increased 32 percent, and 25 businesses opened.
Sierra Region (p. 34)
- In terms of business growth, the number of green establishments in the region increased 50 percent between January 1995 and 2009.
- The number of business establishments in the Water & Wastewater sector increased 31 percent over the 15-year period.
- With employment shares 60 percent above the statewide average, the Energy Generation sector is highly concentrated in the Sierra Region. The Solar and Wind sectors have driven this growth.
"Although we certainly cannot control the global energy markets, we can protect our economy by becoming less dependent on limited natural resources, thus insulating ourselves from volatile markets. California's growing green economy increases our economic diversity and our resilience," said Perry.
Next 10 (www.next10.org) is an independent, nonpartisan organization focused on innovation and the intersection between the economy, the environment, and quality of life issues for all Californians. Next 10 funds research by leading experts on complex state issues.
Collaborative Economics is a San Mateo, California-based research and consulting organization. For over a decade, Collaborative Economics has prepared the annual Index of Silicon Valley for Joint Venture: Silicon Valley Network. More recently it produced The Clean Energy Economy: Repowering Jobs, Businesses and Investments Across America for the Pew Center on the States.
Contact: Roxanna Smith, 323.466.2491
SOURCE Next 10
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