Policy brief: Understanding jobs demand and displacement outcomes of decarbonising UK industry clusters

The decarbonisation of UK industrial clusters via the development of CCUS networks and supply chains can support jobs and gross value-added (GVA) across multiple sectors of the economy. However, worker and skills shortages have been identified as a common challenge across the UK clusters, as well as more generally in the Net Zero space and for the UK economy. These shortages do not just affect the deliverability of CCUS projects: employment demand rising while shortages persist can affect wider economy outcomes. These labour constraints drive jobs being displaced across sectors and regions with average wage rates increasing as different sectors compete to attract and retain workers from the limited pool of labour available.