Green Jobs Supply and Demand Mismatch: Exploring the Causes for Portugal

This research offers a novel approach to analyzing the green labor market by integrating labor demand, labor supply, and employment level data, a methodology previously unexplored, to the best of our knowledge. The study examines the changes and trends over time in the Portuguese labor market, focusing on five relevant green occupation. Given the lack of consensus in the literature on the concept of green jobs, various definitions and identification methodologies are presented. The identification methodologies for green jobs can be classified into two groups: one focused on activity sectors and the other on occupations, with the latter being used in this article. The primary sources of empirical research covering the last decade are registered labor supply and demand at the Portuguese public service of employment, the Institute of Employment and Vocational Training (IEFP), and the Personnel Tables, linked employer-employee micro data, collected by the Ministry of Labor (GEP-MTSSS). The empirical results show that green jobs in Portugal exhibit imbalances between supply and demand, with some occupations experiencing an excess of supply while others facing a shortage. The characteristics of employment in each of the occupations vary in terms of education level, gender, age, and wages. Green jobs represent a minor, but growing, component of the Portuguese labor market.