The Institute for Public Policy Research (IPPR) think tank is calling on the government to invest in a jobs-led recovery for the economy after the pandemic.
They are urging the government to focus on helping the UK meet its targets for improving air quality; lowering carbon dioxide emissions and restoring nature – thus creating 1.6 million new jobs.
A new report - ‘Transforming the Economy after COVID-19: A clean, fair and resilient recovery’ - has recommended a drive to insulate homes and fit low-carbon heating systems such as heat pumps and district heating. This could create 560,000 new jobs.
Experts say that with some furloughed staff unable to resume their old roles - and demand for products and services low - the government must make ‘future-proof sectors’ their priority.
IPPR economists examined a range of low-carbon jobs and industries that could help the economy recover from the impact of the Covid-19 crisis and stated that without government intervention, unemployment could rise by more than 2.1 million.
Suggestions included investing in health and social care, possibly creating another 700,000 jobs; sustainable public transport 230,000 jobs and in tree planting and nature restoration 46,000 jobs.
Carsten Jung - Senior Economist at the IPPR and co-author of the report - said that now is the time to invest in and drive a sustainable recovery, not only for the environment but also for the economy.
He added:
“The Covid crisis is an unprecedented disruption of the labour market. Even as the economy reopens, many furloughed workers might not be able to return to their old jobs. Concerted investment by the government, businesses and households can generate employment in new future-proof sectors.”
According to a poll of 2,000 adults by Savanta ComRes for the IPPR, 74 per cent of respondents agreed that actions to address climate change could help create jobs and opportunities and 67 per cent agreed it would create roles in their local communities.
Gerwyn Davies - Senior Labour Market Adviser at the CIPD - said the main factor limiting employers’ ability to hire at present was a lack of demand for products and services and it made sense to stimulate demand in other areas of the economy through publicly funded work creation schemes.
He stated:
“Any plan should therefore consider an employment offer to people who have been unemployed for more than six months that combines training in green technologies with some practical work activity. This could both be part of a bigger package of measures that the government is expected to roll out over the coming months, and play a greater role in the government’s industrial strategy.”
Luke Murphy - IPPR Associate Director - said:
“Our report finds that clean recovery investments are good for jobs and good for the environment — and what’s more, the public agree. We urgently need to make substantial investment to insulate the nation’s homes, upgrade our public transport network and plant trees and restore nature. We can’t afford to wait for this: now is the time. These measures would not only create 1.6 million much-needed jobs, they’re popular with the public. If the prime minister really wants to emulate Roosevelt’s ‘New Deal’ then the government must significantly increase investment beyond what has been promised so far.”
