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Ways the Inflation Reduction Act Affects the Job Economy

The Inflation Reduction Act recently signed into law by President Biden is expected to create 9 million jobs over the next decade, primarily in the clean energy sector. That is, by all accounts, a positive development for the job economy. But it also presents some logistical challenges that will ripple across industries and keep businesses occupied creating solutions for the foreseeable future.

The Blue Green Alliance prepared a breakdown of the different jobs expected to be created by the Inflation Reduction Act, outlining the sectors where they’ll be added – including clean energy, clean manufacturing, clean transportation, efficient buildings, environmental justice and natural infrastructure. The upshot: The largest piece of legislation to date aimed at mitigating the effects of climate change holds the promise of more fulfilling jobs, greater skill development and higher pay for those employed in these sectors. But let’s first consider what it means to the companies tasked with hiring for all those jobs.

Impact on Employers

The first thing hiring organizations should know is that jobs created by the Inflation Reduction Act will be rolled out over the next decade. In other words, employers won’t wake up tomorrow to find themselves competing for talent in a job economy blown wide open by 9 million new positions.

However, concerns that the labor pool is thinning are valid: Baby Boomers are already retiring, and many more will reach retirement age soon – a significant knowledge and expertise drain as a generation with enormous numbers exits the workforce. According to CNBC, about 4 million baby boomers are retiring each year. Subsequent generations don’t have the same sheer numbers to meet the demands of newly vacant positions, let alone fill those that this legislation eventually will create. Employees who move into these new jobs will also leave vacancies elsewhere. And because international work visas have been reduced in recent years, fewer employees from abroad are available to help buoy the job economy and ease the transition.

A shallow labor pool puts a strain on the hiring apparatus of many companies, but employers aren’t completely out of options. One of their most flexible and efficient alternatives: independent contractors.

Good for Employees

For Generation Z, the verdict is in: acceptable terms of employment no longer begin and end at a competitive salary and good benefits. Many Zoomers crave the flexibility and variety they find in contract work. Gen Z, currently the youngest generation engaged in the professional labor market, also have made a priority of landing fulfilling jobs in industries that engage their passions. A top choice: climate change.

In the coming years, the Inflation Reduction Act will help create millions of positions in the climate change field – and not only for engineers and installers, but for accountants, auditors, and many other industry-adjacent workers. Growth and advancement opportunities will abound. And because highly-skilled contractors tend to place more value on work-life balance than past generations, the chance to contract for businesses in this space – maybe for a few hours a day, or for only six months at a time – figure to be wholeheartedly welcomed by a wave of workers due to spend the next 30-40 years in the workforce. That’s a boon not only for employees, but also for employers.

As organizations related to climate change siphon off workers from other industries in the years ahead, many businesses will need to stay nimble to fill the void left behind. PeopleCaddie’s talent cloud has the power to make quick, rewarding connections – whether you’re a contractor seeking work or an employer seeking workers.

Looking for contract work? Check out the jobs available in PeopleCaddie’s talent cloud.

sgruenWays the Inflation Reduction Act Affects the Job Economy

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