How Skills-Based Hiring Can Solve the Green and AI Jobs Gap
As the UK pushes forward with its green and digital goals, businesses are facing a critical talent shortage in two of the fastest-growing sectors: the green economy and artificial intelligence (AI). The problem? Traditional hiring methods are falling short.
The green economy is expanding three times faster than the rest of the job market. Yet, 27% of employers in this space say they struggle to find qualified talent. Additionally, 27% of job seekers report difficulty finding roles, revealing a clear mismatch. A similar pattern is emerging in AI, where job postings are growing at more than triple the national average.
One key reason for this disconnect is outdated hiring practices. Many employers still prioritize experience and specific credentials, like ‘green skills’ or prior AI job titles, over transferable abilities. This narrow focus shrinks the talent pool at a time when it should be growing.
Skills, Not Just Experience
Green jobs, defined broadly, require more than technical knowledge. The UK Parliament describes green skills as the “knowledge, abilities, values, and attitudes” to reduce human impact on the environment. But these can be found in sectors far beyond sustainability. A project manager from healthcare, a data analyst from finance, or a communicator from tech may all have the necessary skills to succeed in a green role.
By focusing on capabilities such as problem-solving, critical thinking, and adaptability, companies can tap into a much broader workforce. This skills-first hiring approach identifies what people can do, not just where they’ve done it before.
A Generation Ready to Retrain
Young professionals are also keen to step into green roles. A recent survey by Indeed found that 32% of those aged 25 to 34 are open to retraining for a green job, and 42% are even willing to take a pay cut to do so. With the government investing in training schemes under plans for a “clean power army,” the momentum is there, if employers are willing to change their mindset.
Read More: Green Jobs are Redefining the Workforce
AI and Emerging Tech Need Skills-First Too
The need for a skills-based approach isn’t restricted to sustainability. Emerging tech sectors like AI, machine learning, and 5G also face massive demand for talent. Yet these fields are so new that very few candidates have a traditional career path in them.
AI roles, for instance, need a mix of technical expertise (like data analysis and programming) and soft skills (like communication, creativity, and critical thinking). Many professionals in unrelated fields already possess these capabilities; they just haven’t applied them to AI yet. Hiring based on potential, not just past experience, will be essential for building a future-ready workforce.
How Companies Can Act
To shift toward skills-first hiring, companies can start with simple but impactful steps:
Revise job descriptions to highlight required skills instead of strict educational or experience criteria.
Use AI-driven tools to craft better job ads, screen for transferable skills, and widen the search beyond narrow keywords.
Support on-the-job learning and provide reskilling opportunities to help new hires grow into their roles.
This approach addresses immediate talent shortages and supports long-term business resilience and innovation. As regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) increase pressure on firms to prove their environmental and social governance, having the right people in place becomes more critical than ever.
By embracing skills-first hiring, UK companies can unlock new talent, support net-zero ambitions, and lead in both climate and tech innovation.
Also Read: The Booming Green Economy: The Growth of Climate-Related Jobs
If you're curious to learn more, follow our ESG Tech News.
Source: Edie
