A joint report by the global impact organization Circle Economy, the International Labor Organization (ILO) and the World Bank’s Solutions for Youth Employment (S4YE) asks whether the circular economy can create good jobs. It is estimated that a total of 7 to 8 million new jobs could be created through increased reuse and processing of products and materials.
So while the answer to this question is yes, the report Decent Work in the Circular Economy: An Overview of the Existing Evidence Base highlights gaps in knowledge that could hinder the creation of new job opportunities. In addition, a strong focus on the Global North and a great need for improvement in terms of the quality of the work was identified.
What is a circular economy?
While there is no agreed definition (yet) of what exactly a circular economy is, the Ellen McArthur Foundation defines it as “a systems solutions framework that transcends the current economy and its linear process of extracting materials from the earth, making products out of it and throwing it away as waste”.
This requires a transition to renewable energy sources so that a circular model can be based on three principles: the elimination of waste and pollution, a cycle of products and materials, and the regeneration of nature. Pursuing this circular model instead of the current linear model would require a new way of thinking and therefore a new way of working and jobs.
What are “green” jobs?
The ILO defines “green jobs” as those that “contribute to preserving or restoring the environment, whether in traditional sectors such as manufacturing and construction or in new, emerging green sectors such as renewable energy and energy efficiency”.
Green jobs are characterized by helping improve energy and resource efficiency, limiting greenhouse gas emissions, minimizing waste and pollution, protecting and restoring ecosystems, and supporting adaptation to the impacts of climate change.
Alignment with global north
While the circular economy is gaining popularity among both companies and policymakers as a means of achieving climate goals, the study shows that current research on circular economy jobs has a strong bias towards the Global North. “It does not address the impact of circular economy policies on people in countries of the Global South, on atypical workers, women, migrants, youth and other vulnerable populations,” the conclusion reads.
According to the report, 84 percent of current research focuses on countries in the Global North. Sub-Saharan Africa, Eastern Europe, the Middle East and North Africa are the least represented regions, although most circular economy activities are located in the Global South.
Poor working conditions in the Global South
Although 73 percent of workers in low-income countries are employed in the informal economy, most research relates to formal, regulated work. In addition, existing research focuses disproportionately on job creation and less on job quality, including working conditions and wages. There are currently only a handful of studies examining whether and how a circular economy could alleviate poverty and benefit vulnerable communities in low-income countries.
“It is not so much the concept of the circular economy that needs to be introduced in these economies, but the focus is on tackling the low paying informal sector jobs with hazardous working conditions and exposure to toxic materials associated with circular activities such as waste management, recycling , repair and reuse are connected,” explains S4YE program manager Namita Datta.
Addressing the social dimensions of the circular economy
Ultimately, the new report calls for more thorough and comprehensive research on decent work and the circular economy that focuses on the Global South, informal workers and global value chains. In particular, the impact of the circular economy on key actors and marginalized groups needs to be better researched and their involvement in the development and implementation of circular actions ensured.
There should also be more localized, city-level quantitative studies on the potential shortcomings and opportunities of circular economy policies, as well as a review and adjustment of current circular economy modeling methodologies. Globally relevant indicators for employment and decent work in the circular economy also need to be identified and adjusted.
The authors also point to the need for joint advocacy and data partnerships to fill knowledge gaps and make connections to other important issues such as climate justice and women’s empowerment.
“There is no doubt that a circular economy can help us achieve our climate goals. However, the links between the circular economy and social and economic progress continue to be overlooked. The shift towards a more circular economy offers significant opportunities for the world of work, such as the creation of new jobs and sustainable companies,” concludes Alette van Leur, Director of the ILO’s Sectoral Programs Division.