Circular-economic models and strategies are growing in popularity among
businesses and policymakers as a means to increase efficiency, reduce
waste
and reach climate
goals.
By increasing the reuse and regeneration of products and
materials,
a projected 7-8 million new jobs can be created. But a new report by Circle
Economy, the International Labour Organization (ILO) and the
Solutions for Youth Employment (S4YE) Program at the World Bank
identifies knowledge gaps that may hinder the equitable creation of new
employment opportunities.
Decent Work in the Circular Economy: An Overview of the Existing Evidence Base
reveals that current research on circular-economic job opportunities displays a
strong Global North bias. It fails to address the impact of circular
interventions on people in the Global South — including atypical workers, women,
migrants, youth and other vulnerable populations. Additionally, the study
outlines what we currently know about jobs in a circular economy and pinpoints
research gaps — calling for more consistent and internationally relevant
evidence to create a stronger foundation for decision-making.
According to the report, 84 percent of current research focuses on the Global
North. Sub-Saharan Africa, Eastern Europe, the Middle East and
North Africa were the least represented regions — despite the fact that most
circular-economic activities are now located in the Global South. Moreover,
while 73 percent of workers in low-income countries are employed in the informal
economy, most research concerns formal, regulated work.
Existing research also focuses disproportionately on job creation and disregards
job quality — including working conditions and wages. The report finds that
only a handful of studies have examined whether and how a circular economy can
alleviate poverty and benefit vulnerable communities in low-income countries.
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“The link between environmental sustainability goals and human development and
jobs has often been overlooked, especially in the context of developing
countries where most workers are clustered in the informal sector — which is
characterized by low-quality, low-paying jobs,” says Namita
Datta, Program Manager at
S4YE. “The shift to more circular approaches calls for policies that ensure that
the jobs created are not only good for the environment, but also good for
workers.
“The focus would be on addressing the low-quality, low-paying jobs in the
informal
sector
with hazardous working
conditions
and exposure to toxic
materials
that are associated with circular activities like waste management, recycling,
repair and reuse,” Datta explained. “But this integration will require
intentional and adequate policies, as well as further evidence to understand the
impact of a circular economy on people's livelihoods. A truly just transition to
a circular economy will require reskilling and upskilling opportunities for
workers to access better job opportunities.”
Decent work in a circular economy: 5 themes
Five key themes underpin current research into decent work in a circular
economy; these represent some of the crucial opportunities and challenges and
should be considered for circular transition to lead to a more just and
inclusive society:
-
Labor market and sectoral transformation — Employment and job creation
are often described as the most important social and economic contributions
of a circular economy. Based on a comprehensive 2018 ILO
study,
global employment growth was estimated to be driven by Latin America and
the Caribbean (over 10 million jobs) and Europe (around 0.5 million
jobs) due to new jobs in recycling and reprocessing. The region expected to
have most employment gains is the EU, benefiting from the ‘first-mover
advantage’ compared to the rest of the world.
-
Informality in a circular economy — The informal economy is estimated to
employ 60 percent of the world’s population; yet most studies and policy
approaches assume that the economy is part of a regulated, formal economy.
This is especially significant in the Global South — where the reuse,
repair, waste-collection and recycling sectors provide ample employment to
low-income
workers.
Yet, the informal economy is not sufficiently included in the Global North’s
circular economy agenda and existing research does not adequately consider
the wide-ranging circular activities operating informally in the Global
South.
-
Work reallocation and skills development — The successful reallocation
of workers from linear to circular sectors is dependent on access to
training and related policy measures. Gaining the ‘deep skills’ required for
circular interventions relies on employers’ and educational institutions’
knowledge of circular business models. Lack of knowledge can result in a
deep skills gap — especially in low-income countries, where access to STEM
skills for remanufacturing and related sectors may be lacking.
-
Working conditions and social protections — Some academics and
practitioners have proposed a circular economy as a solution to eradicate
poverty (SDG 1). Still, research on poverty alleviation is lacking; most
occupational health and safety concerns relating to circular activities are
associated with the global waste trade and secondhand goods flowing from
Global North to South, where workers are often exposed to toxic waste.
-
Gender discrimination and social equity — Projections show that the
transition to a circular economy will increase female employment globally.
Beyond gender equity, concerns relating to the social blind spots of
circular-economic interventions among underrepresented circular actors (ex:
migrant workers, youth) were only studied in-depth three times, revealing a
significant knowledge gap.
Alette van Leur, Director of the ILO's Sectoral Policies Department, said,
“There is no doubt that a circular economy can help us reach our climate goals.
However, the links between circularity and the achievement of social and
economic progress remain 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 enterprises. However, fully unlocking the potential of
this new economy requires a just transition that addresses the current
inequalities and suboptimal working conditions currently present in the circular
economy. If not managed properly, these issues could continue to impede progress
towards a more equitable and sustainable future.”
Ultimately, the new report calls for more in-depth and inclusive research on
decent work and the circular economy — which puts the Global South, informal
workers and global value chains in the spotlight. The authors also reveal the
need for joint advocacy and data partnerships to close knowledge gaps and build
links to other important themes — such as climate
justice
and women’s
empowerment.
“Having better data and evidence to understand how the circular economy can
create better-quality jobs in different industries around the world is crucial
for a just transition,” says Hatty
Cooper, Director of Governments
and Institutions at Circle Economy. “Also, the circular economy is still seen
as an environmental agenda; and its social and economic benefits are yet to be
fully embraced, despite the importance of this topic. We need to work in
partnership to create and put evidence of its socioeconomic impacts in the hands
of practitioners and decision-makers.”
Decent Work in the Circular Economy is the first output under Circle Economy,
the ILO and S4YE’s joint Jobs in the Circular
Economy initiative —
which aims to address gaps in the evidence base for circular jobs through
collaboration with an international community of research institutions, industry
representatives, social partners, governments and public agencies. The
initiative was launched on May 9 at the Geneva Environment
Network;
findings from the report will also be presented later this month at this year’s
World Circular Economy Forum.
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Sustainable Brands Staff
Published May 10, 2023 2pm EDT / 11am PDT / 7pm BST / 8pm CEST