Global Study Shows Circular Economy Employs up to 142 Million Workers Worldwide

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A groundbreaking new report by Circle Economy, the International Labour Organization (ILO) and the World Bank Group, produced in partnership with the UN Partnership for Action on Green Economy (UN-PAGE), reveals that between 121 and 142 million people around the world work in sectors that contribute to the circular economy. These sectors include repair, recycling, second-hand trade, reuse services, waste management and other activities that extend product lifecycles and reduce environmental impact.

This represents 5 to 5.8 per cent of global employment outside of agriculture—marking the most comprehensive global assessment to date of how many workers depend on circular systems for their livelihoods.

Circular Economy Jobs Concentrated in the Global South

The study shows that most circular economy jobs are located in the Global South, where repair, reuse, recycling and waste recovery activities form a crucial part of local economies. The Americas (6.4%) and Asia–Pacific (5.8%) report the highest shares of circular employment.

However, the research also uncovers structural inequities: over 74 million circular economy workers operate in the informal economy, where jobs lack regulatory protections, stable wages, and safe working conditions. Many informal workers—such as waste pickers, repair technicians, and second-hand traders—play an essential role in environmental sustainability yet remain among the most economically vulnerable.

A Three-Year Collaboration to Map Global Circular Employment

The report, titled Employment in the Circular Economy: Leveraging circularity to create decent work, is the result of a three-year collaborative effort aimed at giving policymakers the evidence and tools needed to support a just, fair and job-rich transition.

Casper Edmonds, Head of the Extractives, Energy & Manufacturing Unit at the ILO, emphasized the importance of recognizing all workers contributing to circularity: “Some are at the forefront of innovation. But for many, circularity is not a choice, but a means of survival. If we combine investments in circularity with measures that support decent work, we can accelerate a just transition that benefits workers and the planet.”

Key Sectors Driving Circular Employment

A few sectors dominate global circular employment:

At the same time, sectors essential for environmental transformation—such as construction and mining—show very low levels of circular employment, signaling the need for greater investment and policy direction.

Ensuring Inclusion, Gender Equality and Social Protection

The report stresses that circular economy strategies must embed workers’ rights, safety standards and social protection, particularly for the informal workforce. Without these measures, the transition risks deepening inequality even as it supports environmental sustainability.

Namita Datta of the International Finance Corporation noted the potential for inclusive growth: “Circular economy jobs are labour-intensive and create local opportunities, especially in developing economies. But we must ensure that women—who currently make up just 26% of circular workers—benefit fully from the shift toward greener and higher-quality jobs.”

Policy Recommendations for a Just Transition

To create sustainable and decent circular economy employment, the report recommends:

  • Promoting circularity through public procurement and investment in high-potential sectors.

  • Supporting small and sustainable enterprises with financing, training and market access.

  • Developing inclusive education and skills programmes for youth, women and informal workers.

  • Expanding occupational safety and health protections and extending social protection systems.

  • Strengthening data ecosystems to measure circular employment and track transitions over time.

Need for Better Data and Global Coordination

Esther Goodwin Brown of Circle Economy underlined that this report marks only the beginning: “There are still major data gaps—especially regarding informal workers and those in agriculture. We must continue improving measurement systems to design effective circular economy and socio-economic policies.”

The report benefits from guidance by an international advisory board and aligns with the mission of UN-PAGE, which unites the expertise of ILO, UNEP, UNDP, UNIDO and UNITAR to support countries advancing green and circular economic transitions.