Labour Market Adaptation in the Green Transition

The transition to a green economy represents a major structural change with significant implications for labour markets, employment patterns, and skill requirements. This chapter analyses labour market adaptation to the green transition in selected European countries, focusing on the role of environmental policy stringency, green skills, and employment policies. Using OECD Environmental Policy Stringency (EPS) data for the period 2013–2020, the study examines the relationship between environmental regulation and employment outcomes through non-parametric statistical methods and cross-country comparison. The findings highlight the importance of policy coherence, lifelong learning, and green human resource management in supporting a just transition. The chapter contributes to the literature by demonstrating that environmental policy stringency can support sustainable job creation when combined with innovation incentives, skill development, and inclusive labour market measures.