iD,
This work is licensed under a Creative Commons Attribution 4.0 International License
Abstract
Generally, the circular economy (CE) refers to the reuse of old products through refurbishment. The CE reduces the burden of waste by redesigning old products into new ones. On the other hand, employment indicates a situation in which people are connected with work that helps them to earn, while unemployment shows the opposite side of employment. This is a secondary study. The PRISMA method was used to acquire the data for this study. It was tested whether the CE has an impact on increasing the employment rate. Findings indicate that many scholars stated that the CE has the potential to improve the employment rate and reduce the unemployment rate, whereas others found that the CE has little impact on employment generation. In conclusion, to achieve better results from the CE, policymakers should include waste from sectors, such as household waste. Also, all countries of the world should be included, not only the developed countries.
Keywords: Circular Economy, Employment, Unemployment, and Developed Countries.
Author Biographies
References
Aguilar-Hernandez, G. A., Dias Rodrigues, J. F., & Tukker, A. (2021). Macroeconomic, social and environmental impacts of a circular economy up to 2050: A meta-analysis of prospective studies. Journal of Cleaner Production, 278, 123421. https://doi.org/10.1016/j.jclepro.2020.123421
Ahmed, Z., Acet, H., & Mahmud, S. (2025). Circular economy model and sustainable development nexus in Bangladesh. International Journal of Sustainable Society, 17(1), 1. https://doi.org/10.1504/IJSSOC.2025.10053223
Ahmed, Z., Mahmud, S., & Acet, Dr. H. (2022). Circular economy model for developing countries: Evidence from Bangladesh. Heliyon, 8(5), e09530. https://doi.org/10.1016/j.heliyon.2022.e09530
Arman, S. Md., & Mark-Herbert, C. (2021). Re-Commerce to Ensure Circular Economy from Consumer Perspective. Sustainability, 13(18), 10242. https://doi.org/10.3390/su131810242
Azizuddin, M., Shamsuzzoha, A., & Piya, S. (2021). Influence of Circular Economy Phenomenon to Fulfil Global Sustainable Development Goal: Perspective from Bangladesh. Sustainability, 13(20), 11455. https://doi.org/10.3390/su132011455
Bai, C., Ahmadi, H. B., Moktadir, Md. A., Kusi-Sarpong, S., & Liou, J. J. H. (2021). Analyzing the Interactions Among the Challenges to Circular Economy Practices. IEEE Access, 9, 63199–63212. https://doi.org/10.1109/ACCESS.2021.3074931
Burger, M., Stavropoulos, S., Ramkumar, S., Dufourmont, J., & van Oort, F. (2019). The heterogeneous skill-base of circular economy employment. Research Policy, 48(1), 248–261. https://doi.org/10.1016/j.respol.2018.08.015
Campagnaro, C., & D'Urzo, M. (2021). Social Cooperation as a Driver for a Social and Solidarity Focused Approach to the Circular Economy. Sustainability, 13(18), 10145. https://doi.org/10.3390/su131810145
Cecere, G., & Mazzanti, M. (2017). Green jobs and eco-innovations in European SMEs. Resource and Energy Economics, 49, 86–98. https://doi.org/10.1016/j.reseneeco.2017.03.003
Connolly, K., Allan, G. J., & McIntyre, S. G. (2016). The evolution of green jobs in Scotland: A hybrid approach. Energy Policy, 88, 355–360. https://doi.org/10.1016/j.enpol.2015.10.044
Dewi, N. N. C. L., & Pratama, M. R. W. (2021). Potential Impact of China's Circular Economy on Jobs Creation in the Tertiary Industrial Sector. Journal of World Trade Studies, 6(1), 15–27. https://doi.org/10.22146/jwts.v6i1.1145
Donati, F., Aguilar-Hernandez, G. A., Sigüenza-Sánchez, C. P., De Koning, A., Rodrigues, J. F. D., & Tukker, A. (2020). Modeling the circular economy in environmentally extended input-output tables: Methods, software and case study. Resources, Conservation and Recycling, 152, 104508. https://doi.org/10.1016/j.resconrec.2019.104508
Dulia, E. F., Ali, S. M., Garshasbi, M., & Kabir, G. (2021). Admitting risks towards circular economy practices and strategies: An empirical test from supply chain perspective. Journal of Cleaner Production, 317, 128420. https://doi.org/10.1016/j.jclepro.2021.128420
Geerken, T., Schmidt, J., Boonen, K., Christis, M., & Merciai, S. (2019). Assessment of the potential of a circular economy in open economies – Case of Belgium. Journal of Cleaner Production, 227, 683–699. https://doi.org/10.1016/j.jclepro.2019.04.120
Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017). The Circular Economy – A new sustainability paradigm? Journal of Cleaner Production, 143, 757–768. https://doi.org/10.1016/j.jclepro.2016.12.048
Govindan, K., & Hasanagic, M. (2018). A systematic review on drivers, barriers, and practices towards circular economy: A supply chain perspective. International Journal of Production Research, 56(1–2), 278–311. https://doi.org/10.1080/00207543.2017.1402141
Halog, A., & Anieke, S. (2021). A Review of Circular Economy Studies in Developed Countries and Its Potential Adoption in Developing Countries. Circular Economy and Sustainability, 1(1), 209–230. https://doi.org/10.1007/s43615-021-00017-0
Horbach, J. (2010). The Impact of Innovation Activities on Employment in the Environmental Sector – Empirical Results for Germany at the Firm Level. Jahrbücher für Nationalökonomie und Statistik, 230(4), 403–419. https://doi.org/10.1515/jbnst-2010-0403
Horbach, J., & Rammer, C. (2020). Circular economy innovations, growth and employment at the firm level: Empirical evidence from Germany. Journal of Industrial Ecology, 24(3), 615–625. https://doi.org/10.1111/jiec.12977
Horbach, J., & Rennings, K. (2013). Environmental innovation and employment dynamics in different technology fields – an analysis based on the German Community Innovation Survey 2009. Journal of Cleaner Production, 57, 158–165. https://doi.org/10.1016/j.jclepro.2013.05.034
Hossain, M. S., & Khatun, M. (2021). A Qualitative-Based Study on Barriers to Change from Linear Business Model to Circular Economy Model in Built Environment—Evidence from Bangladesh. Circular Economy and Sustainability, 1(3), 799–813. https://doi.org/10.1007/s43615-021-00050-z
ILO. (2013). Decent work indicators: Guidelines for producers and users of statistical and legal framework indicators: ILO manual. International Labour Organization, Geneva. Available at: ILO Official Portal
Kirchherr, J., & van Santen, R. (2019). Research on the circular economy: A critique of the field. Resources, Conservation and Recycling, 151, 104480. https://doi.org/10.1016/j.resconrec.2019.104480
Kumar, V., Sezersan, I., Garza-Reyes, J. A., Gonzalez, E. D. R. S., & AL-Shboul, M. A. (2019). Circular economy in the manufacturing sector: Benefits, opportunities and barriers. Management Decision, 57(4), 1067–1086. https://doi.org/10.1108/MD-09-2018-1070
Laubinger, F., Lanzi, E., & Chateau, J. (2020). Labour market consequences of a transition to a circular economy: A review paper. International Review of Environmental and Resource Economics, 14(4), 381–416. https://doi.org/10.1561/101.00000120
Licht, G., & Peters, B. (2014). Do Green Innovations stimulate Employment? – Firm-level Evidence From Germany. WWWforEurope working paper no.55, Mannheim, Germany. Available at: EconStor Repository
Llorente-González, L. J., & Vence, X. (2020). How labour-intensive is the circular economy? A policy-orientated structural analysis of the repair, reuse and recycling activities in the European Union. Resources, Conservation and Recycling, 162, 105033. https://doi.org/10.1016/j.resconrec.2020.105033
Mitchell, P. (2015). Employment and the circular economy: Job creation through resource efficiency in London. London Sustainable Development Commission. Available at: ResearchGate Publication
Moreno-Mondéjar, L., Triguero, Á., & Cuerva, M. C. (2021). Exploring the association between circular economy strategies and green jobs in European companies. Journal of Environmental Management, 297, 113437. https://doi.org/10.1016/j.jenvman.2021.113437
Nechifor, V., Calzadilla, A., Bleischwitz, R., Winning, M., Tian, X., & Usubiaga, A. (2020). Steel in a circular economy: Global implications of a green shift in China. World Development, 127, 104775. https://doi.org/10.1016/j.worlddev.2019.104775
Niang, A., Bourdin, S., & Torre, A. (2023). The geography of circular economy: Job creation, territorial embeddedness and local public policies. Journal of Environmental Planning and Management, 1–16. https://doi.org/10.1080/09640568.2023.2210749
Papagiannaki, K. S., & Dey, P. K. (2022). Implementing circular economy in the textile and clothing industry. In Supply Chain Sustainability in Small and Medium Sized Enterprises (1st ed., p. 38). Routledge.
Pfeiffer, F., & Rennings, K. (2001). Employment impacts of cleaner production – evidence from a German study using case studies and surveys. Business Strategy and the Environment, 10(3), 161–175. https://doi.org/10.1002/bse.285
Pianta, M. (2006). Innovation and Employment. In J. Fagerberg & D. C. Mowery (Eds.), The Oxford Handbook of Innovation (pp. 568–598). Oxford University Press. https://doi.org/10.1093/oxfordhb/9780199286805.003.0021
Rahman, S. M. M., & Kim, J. (2020). Circular economy, proximity, and shipbreaking: A material flow and environmental impact analysis. Journal of Cleaner Production, 259, 120681. https://doi.org/10.1016/j.jclepro.2020.120681
Raillard, J.-P. (2021). Repair, reuse and job creation. Field Actions Science Report, Special Issue 23, 82–87.
Repp, L., Hekkert, M., & Kirchherr, J. (2021). Circular economy-induced global employment shifts in apparel value chains: Job reduction in apparel production activities, job growth in reuse and recycling activities. Resources, Conservation and Recycling, 171, 105621. https://doi.org/10.1016/j.resconrec.2021.105621
Rudan, E. (2023). Circular Economy of Cultural Heritage—Possibility to Create a New Tourism Product through Adaptive Reuse. Journal of Risk and Financial Management, 16(3), 196. https://doi.org/10.3390/jrfm16030196
Sariatli, F. (2017). Linear Economy Versus Circular Economy: A Comparative and Analyzer Study for Optimization of Economy for Sustainability. Visegrad Journal on Bioeconomy and Sustainable Development, 6(1), 31–34. https://doi.org/10.1515/vjbsd-2017-0005
Sulich, A., & Sołoducho-Pelc, L. (2022). The circular economy and the Green Jobs creation. Environmental Science and Pollution Research, 29(10), 14231–14247. https://doi.org/10.1007/s11356-021-16562-y
The Guardian. (2011, January 25). Global employment: What is the world employment rate? The Guardian Datablog. Available at: The Guardian Archive
UNEP. (2008). Green Jobs: Towards Sustainable Work in a Low-Carbon World. UNEP - UN Environment Programme, Geneva. Available at: UNEP Report Portal
Wei, L., & Liu, Y. (2012). Present Status of e-waste Disposal and Recycling in China. Procedia Environmental Sciences, 16, 506–514. https://doi.org/10.1016/j.proenv.2012.10.070
Wiebe, K. S., Harsdorff, M., Montt, G., Simas, M. S., & Wood, R. (2019). Global Circular Economy Scenario in a Multiregional Input–Output Framework. Environmental Science & Technology, 53(11), 6362–6373. https://doi.org/10.1021/acs.est.9b01208
Wright, C. Y., Godfrey, L., Armiento, G., Haywood, L. K., Inglesi-Lotz, R., Lyne, K., & Schwerdtle, P. N. (2019). Circular economy and environmental health in low- and middle-income countries. Globalization and Health, 15(1), 65. https://doi.org/10.1186/s12992-019-0501-y
