Aftermath of COVID-19 Crisis, New Study Uncovers 10m Additional Jobs in Transport Sector

Prospects of recovery from the COVID-19 pandemic returning to business, as usual, are currently not appearing very positive. 

Concerned strategic thinkers are already pushing for the advancement of a sustainable development agenda. 

According to them, a structural transformation of the transport sector will be needed if environmentally sustainable, green economies are to become a reality.

It is being argued that the structural transformation could lead to the creation of millions of new jobs. So say the authors of a new studyJobs in green and healthy transport: Making the green shift.

The report examines the employment implications of four “green transport” scenarios in 56 countries in North America, Europe, the Caucasus and Central Asia, which are members of the UN Economic Commission for Europe (UNECE).

It compares a ‘business-as-usual’ approach with scenario-based projections that run up to 2030. These options envisage an accelerated expansion of public transport and the electrification of private passenger and freight transport.

The study finds that 10 million additional jobs could be created worldwide – 2.9 million in the UNECE region – if 50 per cent of all vehicles manufactured were electric. In addition, almost 5 million new jobs could be created worldwide – 2.5 million in the UNECE region – if UNECE countries doubled investment in public transport.

Other factors that could support job creation outside transport include increased spending on goods and services resulting from a reduction in spending on oil, and measures related to the production and use of energy. 

The electrification of private passenger and freight transport would also create jobs, particularly if the electricity came from renewable sources.

The report says that greener transport systems produced by changes like these would also result in reduced greenhouse gas emissions, air and noise pollution, and traffic congestion – which could lead to fewer road accidents.

UNECE Executive Secretary, Olga Algayerova, says “the inland transport sector is key in the economies of our region, both regarding its share of GDP and employment. This study highlights some of the key opportunities to transform the sector and make it greener, healthier and more sustainable.

“This report is also a call for governments and the sector itself to make the right choices and invest massively in public transport and green technologies to seize these opportunities.” 

Team Leader at the International Labour Organisation (ILO), Catherine Saget, says “pursuing the goal of an environmentally sustainable and inclusive society requires a structural transformation of the economy, including both changes in the products and services on offer and production processes. 

‘’This structural transformation, which would include the transport sector, has the potential to create decent work and protect workers and their families if it is accompanied by suitable policies.” 

To make the most of the employment opportunities associated with greening the transport sector, the report recommends the implementation of a comprehensive range of policies. 

These will include skills development, social protection, labour market policies, and the promotion of social dialogue and fundamental rights at work.

Key figures about the transport sector

Transport is a key sector in the global economy (UNEP, 2017). Specifically, land transport accounts for more than 60 million direct jobs around the world, representing over two per cent of global employment. 

By enabling the mobility and connectivity of people and goods, transport sustains the activity of many other sectors across the economy, creating jobs, adding economic value and promoting social inclusion. As such, the transport sector is a key player in advancing the 2030 Agenda for Sustainable Development.

In the United States, transport accounted for nine per cent of GDP in 2015 and employed about 13 million people, or 9 per cent of the labour force, in 2016 (US Department of Transportation, 2018). 

In the European Union, almost 12 million people, or more than 5 per cent of the total workforce, worked in the transport and storage services sectors in 2016 (European Commission, 2018). It represents 6.8% of GDP.

On average, European households, according to experts, spent 13 per cent of their total expenditure on transport-related items in that year.

Urban public transport represents around 20 per cent of the output of the transport sector, and some 13 million people worldwide are employed by public transport services (UITP, 2013a).

The transport sector also has various adverse impacts on the environment and human health. Thus, it is a major contributor to the emission of greenhouse gases (GHGs) responsible for climate change and also contributes to air pollution, acid rain, eutrophication, crop and forest damage, natural resource depletion, habitat fragmentation and waste generation. 

The transport sector also poses significant risks to human health through road injury, air and noise pollution, and traffic congestion. Direct GHG emissions from the transport sector account for at least 25% of total emissions (EEA, 2019). 

Across UNECE countries, transport’s share of national GHG emissions ranges from under 10 per cent in Kazakhstan to more than 50 per cent in Sweden and Luxembourg (World Bank, 2018).


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