Between 121 and 142 million people are employed in the circular economy around the world, a new report by Circle Economy, the International Labour Organization (ILO) and the World Bank Group, in partnership with the UN Partnership for Action on Green Economy (UN-PAGE), has found.
According to the report, Employment in the Circular Economy: Leveraging circularity to create decent work, this represents between 5% and 5.8% of total global employment outside of agriculture, with the majority of circular economy workers employed in repair, recycling, second-hand trade and waste management.
In the Americas, some 6.4% of the workforce is employed in the circular economy, the report found, while in the Asia Pacific region, this stands at 5.8%.
Informal economy
At the same time, however, more than half of those employed in the circular economy, around 74 million people, work in what can be deemed the ‘informal economy’, where jobs are not regulated and lack state protection.
This is particularly prevalent in the Global South, where many workers face ‘precarious’ working conditions, unstable incomes, and low wages.
“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,” commented Casper Edmonds, head of the extractives, energy and manufacturing unit at the ILO.
“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.”
Sector by sector
On a sector-by-sector basis, repair and maintenance (46%) accounts for the largest share of circular economy jobs, followed by manufacturing and waste management (8%). Other sectors, such as construction and mining show low levels of circular activity, despite their importance in the sustainable transition.
The report calls on policymakers to integrate workers’ rights and social protections into circular economy strategies, noting that in many cases, environmental legislation prioritises climate targets without considering the social aspect – the people driving the transition.
Inclusive opportunities
“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,” added Namita Datta, head of gender and economic inclusion thought leadership at the International Finance Corporation.
“The key question is how to make these opportunities inclusive – ensuring that women, who make up 26% 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.” Read more here.
