An examination of employment change based upon an exploratory classification of Northern Ireland's environmental industry is undertaken. Results show that, in 1993, some 12 900 persons or around 2.1% of the total civilian employment in the region were working in a ‘green production sector’. By using a range of data sources it is suggested that significant opportunities for employment expansion currently exist. Indeed, a total of between 4000 and 6000 new environmental jobs could be created in Northern Ireland by the year 2003. Most of the growth is anticipated in the traditional areas of recycling and re‐use, pollution treatment and control and energy conservation. In a small and peripheral European economy these figures have important implications for the development of the local labour market. To this end, a series of recommendations is put forward that could help Northern Ireland maximize the employment potentials offered by these types of environmental activity. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment.