The transition to a circular economy could lead to the creation of millions of new jobs, according to the International Labour Organisation. The ILO added that at the same time, this shift calls for informed policies that promote both job quality and environmental sustainability.

It has been estimated that a total of seven to eight million new jobs could be created in the circular economy, where all forms of waste, such as clothes, scrap metal and obsolete electronics are reused, recycled and refurbished. Such and economic model could help protect the environment, contribute to the better use of natural resources and support the development of local economies.

A report by the ILO also found a lack of research in developing countries, where the vast majority of waste management and recycling jobs are located.

The report was produced by the ILO, the Solutions for Youth Employment (S4YE) Programme at the World Bank, and Circle Economy, a non-governmental organisation that promotes sustainable development and the circular economy.

The report says that current research on jobs in the circular economy fails to fully address the impact circular economy interventions have on people in countries in the Global South, atypical workers, women, migrants, youth and vulnerable populations.

It found that 84% of research combining decent work and the circular economy focuses on countries in 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 economy activities are now located in the Global South. Moreover, while 73% of workers in low-income countries are employed in the informal economy, most research concerns formal, regulated work.

The Global South refers to the regions of Latin America, Asia, Africa, and Oceania.

Alette van Leur, Director of the Sectoral Policies Department of the ILO, 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.”

The ILO added that existing research on decent work in the circular economy also focuses disproportionately on job creation and largely 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.

The report calls for more in-depth research on decent work and the circular economy, focusing on the Global South, informal workers, the quality of jobs and supply chains.

Namita Datta, Programme Manager for the World Bank’s Solutions for Youth Employment Programme (S4YE), said, “It is not as much the concept of circularity that needs an introduction in these economies, but instead, the focus should 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.”