New Study Finds Inflation Reduction Act Will Create 9 Million Jobs Over 10 Years

WASHINGTON, D.C., Aug. 05, 2022 (GLOBE NEWSWIRE) — The Political Economy Research Institute (PERI) at the University of Massachusetts Amherst has released a new study, commissioned by the BlueGreen Alliance, revealing the job creation potential of the more than 100 climate, energy, and environmental programs included in the Inflation Reduction Act. The BlueGreen Alliance has organized the new data into a microsite, highlighting the job creation potential in six policy areas and exploring the impact of selected investments.

“PERI’s new analysis confirms that this historic bill not only will support a livable climate, clean air, and a more equitable economy, but also will create more than 9 million jobs across the country over the next decade,” said BlueGreen Alliance Executive Director Jason Walsh. “Few pieces of legislation this century have come close to such sweeping job creation potential. This bill’s investments offer an opportunity to support and create good union jobs and for workers and communities to reap the economic gains of the clean economy.”

The job creation estimates include jobs that will be created by both the public investments in the Inflation Reduction Act and the private investments that the bill will stimulate. The analysis examines direct jobs created as a direct result of the investments. It also includes indirect jobs—created elsewhere in the supply chain as a result of increased business demand for materials and services—and induced jobs, which are created as a result of increased spending by workers who benefit from the direct and indirect jobs. 

The PERI analysis finds that the Inflation Reduction Act’s climate and energy investments will create more than 9 million jobs over the next decade. That includes:

• Nearly 5 million jobs over a decade from clean energy investments;
• More than 900,000 jobs over a decade from programs to build clean manufacturing supply chains;
• More than 400,000 jobs over a decade from investments in electric vehicles and clean transportation;
• More than 900,000 jobs over a decade from programs to make our homes and offices more energy efficient;
• 150,000 jobs over a decade from investments in environmental justice and climate resilience; and
• More than 600,000 jobs over a decade from investments in our natural infrastructure. 

The factsheet notes that with robust application of the labor standards and targeted investments included in the Inflation Reduction Act, many of these jobs will offer workers good wages and benefits and will be targeted to the areas that need them most. Additional targeted investments and equitable hiring practices could be used to prioritize job access for low-income workers, workers of color, and workers in environmental justice, deindustrialized, and energy transition communities. 

“We have long called for congressional action that will address the joint crises of climate change, income inequality, and racial injustice,” said Walsh. “Now it’s time to get it over the finish line.” 

 

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