The $30 billion jobs opportunity

In an election year, you cannot swing a dead cat without hitting a political ad, photo op, or campaigning politician. In a country still reeling in many ways from the economic collapse of six years ago, the largest talking point still centers around job growth. Regardless of one's opinion on how many jobs we really need as we develop more and more efficient ways to maintain our quality of life, the current state of affairs in Illinois comes down to 433,000 people who want and need to work who cannot find a job. With approximately 150,000 to 200,000 job openings in Illinois going unfulfilled, we would need to create about 250,000 new jobs in order to obtain full employment. With manufacturing making a slow recovery, and nowhere near fast enough to create that kind of growth, where can we turn for good paying, productive jobs?

Clean energy and energy efficiency.

Currently, Illinois' residential and small business consumers spend over $30 billion a year for energy. Almost all of that capital leaves the state, with only a small portion getting recycled back into the Illinois economy. If we can find a way to tap into that capital already being spent, and turn that into job growth, we can both improve our employment situation and create a cleaner, healthier future. In addition, that $30 billion, at current rates of escalation, can be $35-40 billion within only a year or two, so economically, it behooves us to move quickly.

The key to the job growth comes from the need for almost all energy efficiency and clean energy work to use local labor. The fixing up of homes and small commercial buildings, installation of solar panels, and construction of wind turbines uses, almost exclusively, local labor. Dirty energy industries, including nuclear, employ somewhere between 5 and 8 people for every $1 million spent. Clean energy and energy efficiency employ about 16 to 17 in good, median income-scale jobs. That means that our $30 billion each year could fund as many as 495,000 jobs in Illinois. Even if we only took half of our current energy expenditures and switched them to clean energy or energy efficiency, we would more than eliminate our current unemployment. In addition, we would build a stronger, more resilient economy less susceptible to shocks from energy price increases.

It will take much work in our financial sector to develop the mechanisms to make this change happen, but it can happen within months, not years. We have the capacity to train workers through our robust community college network. We have the knowhow through years of programs managed by local consultants and non-profits. All it takes is for the financial system to let small building owners tap into the same tools to which institutions and large customers already have access. Tools like on-bill financing, property-assessed clean energy, and community energy cooperatives provide the mechanism that can turn $30 billion a year in energy expenditures into a $500 billion construction program.

It will also take political will...to bring big energy companies and utilities to the table when any program like this is in the interest of the consumer but not large energy companies. It will be interesting to see if either candidate for Governor has the insight or will to make something like this happen.