Circular Economy Proxy Measures: Indicators on job effects for a closed-loop economy

The report investigates how transitioning to a closed-loop economy affects employment, concluding that circular economy proxy measures are generally more labour-intensive than fossil-fuel-related jobs and can decouple economic activity from greenhouse gas emissions.

• Material efficiency can create between 9 million and 25 million jobs worldwide through the profitability of innovative technologies, changes in labour productivity, and the import of foreign value added.
• In Europe, achieving a 70 per cent recycling target could result in 322,000 direct jobs, 160,900 indirect jobs, and 80,400 induced jobs, totaling 563,000 net new jobs.
• Industrial ecology acts as an enabler for the circular economy by creating industrial networks that reduce waste, though there is a noted gap in studies that quantify its specific job creation potential.
• Energy efficiency is highly labour-intensive, particularly in manufacturing, engineering, and construction; ambitious programs in Europe could increase employment by 0.7 million to 4.2 million jobs by 2030.
• Renewable energy technologies generally have higher labour intensity than fossil fuels, with an average potential of 0.65 jobs/GWh, which increases to 0.80 jobs/GWh when combined with energy efficiency, compared to 0.15 jobs/GWh for fossil fuels.
• Green procurement serves as an enabler of the circular economy by using government purchasing power to shift business models toward sustainability, supporting local job creation and decent working conditions.
• The transition to material efficiency may cause job losses in raw material extraction in non-OECD countries and BRICS nations, suggesting that 40 per cent of proceeds from developed countries should be reinvested into just transition policies in at-risk regions.
• In the United Kingdom, a 'Transformation' scenario for material efficiency could create 517,000 gross jobs and 102,000 net jobs, with the highest growth in elementary sectors like waste and recycling.

APA

Echeverría, D., Roth, J., Mostafa, M., & Gass, P. (2020). Circular Economy Proxy Measures: Indicators on job effects for a closed-loop economy. International Institute for Sustainable Development. https://www.iisd.org/system/files/2020-12/circular-economy-proxy-measures.pdf

Chicago

Echeverría, Daniella, Joachim Roth, Mostafa Mostafa, and Philip Gass. Circular Economy Proxy Measures: Indicators on job effects for a closed-loop economy. International Institute for Sustainable Development, 2020. https://www.iisd.org/system/files/2020-12/circular-economy-proxy-measures.pdf.

Wikipedia

{{cite report |last1=Echeverría |first1=Daniella |last2=Roth |first2=Joachim |last3=Mostafa |first3=Mostafa |last4=Gass |first4=Philip |title=Circular Economy Proxy Measures: Indicators on job effects for a closed-loop economy |publisher=International Institute for Sustainable Development |date=November 2020 |url=https://www.iisd.org/system/files/2020-12/circular-economy-proxy-measures.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{echeverra2020circular, author = {Echeverría, Daniella and Roth, Joachim and Mostafa, Mostafa and Gass, Philip}, title = {{Circular Economy Proxy Measures: Indicators on job effects for a closed-loop economy}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = nov, url = {https://www.iisd.org/system/files/2020-12/circular-economy-proxy-measures.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }