The Inflation Reduction Act (IRA), signed into law last year, will provide the United States with $370 billion in direct investments in clean energy, and possibly spur far more through tax credits. The IRA is expected to stimulate a green transition in the US. And it will turbocharge the US green labor market, with more than 1.5 million new clean energy jobs projected by 2030—a that figure could grow to as high as 2.9 million.
According to estimates, nearly 60 percent of these jobs won’t require a college degree; only around 11 percent will require an associate degree. These jobs will further test a tight mid-skill labor market. For instance, the construction sector already faces a shortage of nearly half a million workers, and it will likely get worse. Experts warn of a ‘silver tsunami’ over the coming decade: from 2021 to 2031, 1.7 million workers are expected to leave the infrastructure sector each year, all while demand is ramping up.
Given the scale of labor demand, timeframes set by policy commitments, and the limits of the US training and up-skilling ecosystem, it is likely that skilled labor migration will need to play a role in filling the gap. In October, CGD hosted a roundtable of senior industry representatives, academics, and policymakers, to explore these issues under Chatham House Rule. This blog summarizes the key points from this discussion.