The report underscores that transitioning towards a sustainable and just circular economy is an urgent global imperative. The current “take-make-waste” linear model has pushed planetary boundaries to their limits and worsened social inequalities. While global circularity rates have fallen from 9.1% in 2018 to 6.9% in 2025, evidence suggests that the transition presents a significant opportunity for employment generation. This first comprehensive global baseline reveals that between 121 to 142 million people are currently employed in the circular economy, representing 5 to 5.8% of total global employment, excluding agriculture.

The circular economy and decent work

The circular economy has the potential to address human well-being, economic productivity, and social equity. However, the transition will not be just or job-rich by default. Currently, much circular activity remains concentrated in informal and primary economies where jobs are often precarious, earnings are low, and productivity is limited by insufficient access to tools and capital. Research indicates that less than 2% of academic papers on the circular economy cover topics related to decent work, with 84% of research focused on industrialised countries. A just transition requires a shift from informal, low-skilled, and low-paid activities toward productive, formal, and decent work, supported by the ILO Guidelines for a just transition.

Global baseline of employment in the circular economy

The analysis identifies that most circular employment (121 million people or 5% of global employment) is in fully circular sectors, including repair, recycling, second-hand trade, waste management, and urban transit. An additional 20.5 million (0.8%) are found in partially circular sectors like mining, manufacturing, and construction. A small number of sectors dominate the landscape, with repair and maintenance activities accounting for nearly half (46%) of total circular employment, providing work for at least 65.2 million people. Waste-related activities employ 11 million workers, while the manufacturing sector employs 34.8 million people in circular roles.

Geographically, circular economy employment exists in all regions but is unevenly distributed. Asia and the Pacific account for more than half of global circular employment with 77.6 million people, followed by the Americas (27.5 million) and Europe and Central Asia (20.8 million). Informality is a defining feature, with over 74 million workers (52%) in the circular economy being informal. This rate is highest in low-income countries (84.4%) and lower-middle-income countries (84%). Women account for 26% of circular economy workers, totalling 36.4 million, and are heavily concentrated in manufacturing, second-hand retail, and repair services, with limited representation in construction and urban transit.

The way forward

The report puts forward recommendations aligned with nine policy principles. Macroeconomic and growth policies should use these global estimates as a catalyst for integrating socio-economic dimensions into circular economy policy-making. Industrial and sectoral policies must promote circularity beyond fully circular industries, incentivising sectors like manufacturing and construction. Enterprise policies should identify opportunities for sustainable enterprise development, particularly for micro-, small-, and medium-sized enterprises (MSMEs) and cooperatives.

Governments and the private sector must invest in skills development and lifelong learning, ensuring initiatives are inclusive of women, youth, and workers in the informal economy. Occupational safety and health (OSH) must be tailored to specific circular risks, such as exposure to hazardous materials during recycling. Extending social protection and active labour market policies is essential to support workers through transitions. Finally, the report calls for the respect of fundamental principles and rights at work, including freedom of association, and the strengthening of social dialogue and tripartism to ensure decent work is central to circular economy roadmaps.