With over 140 million workers engaged in the circular economy globally, the need for economies to initiate policies for sustainable enterprises and stronger social protections in the sector has been emphasised.
According to a new joint report by Circle Economy, the International Labour Organisation (ILO) and the World Bank Group, in partnership with the United Nations (UN) Partnership for Action on Green Economy (UN-PAGE), between 121 and 142 million people worldwide are employed in sectors that contribute to the circular economy, such as repair, recycling, second-hand trade and waste management.
This, the report said, represents roughly between five and 5.8 per cent of total global employment (excluding agriculture). The study – the first global analysis of employment in the circular economy – shows that most circular economy activities are concentrated in the Global South.
More than half of all circular economy workers – over 74 million people – are employed in the informal economy, where jobs are not regulated and lack state protection.
This is particularly prevalent in the Global South, leaving many of the workers driving sustainable development and caring for our planet among the most disadvantaged.
They often face precarious working conditions, unstable incomes and low wages. Titled ‘Employment in the Circular Economy: Leveraging Circularity to Create Decent Work’, the study is the culmination of three years of collaboration between the three agencies aimed at equipping policymakers and decision-makers with data and practical tools to accelerate a just and job-rich transition to the circular economy.
Head of the Extractives, Energy and Manufacturing Unit at the ILO, Casper Edmonds said, “With this report, we are casting a new light on the businesses and workers that every day in every country and every sector of our economies provide essential services for our societies and planet.
“Some are at the forefront of innovation. But for many, circularity is not a choice, but a way of getting by. If we combine investments in circularity with measures to advance decent work, we accelerate a just and job-rich transition to the circular economy.”
The study explained that a selection of sectors dominate circular economy employment. According to it, repair and maintenance account for nearly half (46 per cent), followed by manufacturing (24.5 per cent) and waste management (8 per cent).
By contrast, it said industries that are crucial to advancing the circular transition – such as construction and mining – have a very low share of circular employment. The report stresses the need for targeted policies to “green” jobs in these sectors and accelerate their transition toward a circular economy.
The findings call on policymakers to integrate workers’ rights and social protections into circular economy strategies. Too often, environmental legislation prioritises climate goals while neglecting the social dimension and the people driving the transition.
Head of Gender and Economic Inclusion Thought Leadership at the International Finance Corporation, Namita Datta, stressed that jobs in the circular economy are highly labour-intensive and present a real opportunity to create local employment, particularly in developing countries where such practices are already part of daily life.
“The key question is how to make these opportunities inclusive – ensuring that women, who make up 26 per cent of circular economy workers, benefit fully.
With intentional investments and policies, we can create not just green jobs, but better-quality green jobs linked to productive value chains for women and informal workers,” she said.
To ensure a just transition to the circular economy, the report recommended promoting circularity through public procurement and investment in high-potential sectors like manufacturing and construction.
It recommended supporting sustainable enterprises through access to finance, business development services, and capacity-building programmes; developing inclusive educational programmes with a focus on youth, informal workers, and women.
It called for enforcing occupational safety and health standards, extending social protection to informal workers and upholding fundamental labour rights.
The report equally called for strengthening data ecosystems at local, national, and international levels to monitor and assess circular economy activities and related employment trends.
In her submission, Circular Jobs Initiative Lead at Circle Economy, Esther Brown said: “This report is the first global analysis of employment in the circular economy. However, this study is just the first step. It demonstrates that there are significant data gaps we must overcome – particularly to better recognise and value the contribution of workers in the informal economy and agricultural sector. We look forward to continuing our work with partners to bridge these gaps and develop modelling that can better inform the design of circular economy and socio-economic policies.”
