Circular Jobs Tracker Report
The Circular Economy has the potential to unlock growth in Scotland – and this report further evidences the positive impact circularity has on employment and income.
Circularity's economic impact
Scotland’s circular economy is not only an environmental necessity – it is a high productivity, commercially driven and foundational part of our national economy.
The Circular Jobs Tracker shows that jobs in inherently circular sectors generated increased Gross Value Added (GVA) as well as increased employment opportunity, productivity and increased salary for workers – having an average labour productivity that's 16% higher than the economy wide average.
This increased productivity translates into economic value, with a total contribution of around £4 billion to Scotland’s GDP in 2021 – approximately one and a half times the GDP of Scotland’s spirit and wines industry.
"For too long, the circular economy has been seen as an environmental ambition, but this research shows it is already an economic asset."
Ciaran McGuigan, CEO, Zero Waste Scotland
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Key findings
The tracker finds that inherently circular sectors created 56,000 full time equivalent (FTE) jobs in 2021 - about 2.6% of total employment in Scotland, and these roles having a higher-than-average compensation, with an average of £39.5k FTE salary.
These insights use a new methodology that further supports the findings from our State of the Circular Economy Report - building confidence in the circular economy’s positive impact on Scotland’s economy and job market.
Key findings include:
- The Circular Economy employed 56,000 FTE workers in Scotland in 2021. This figure has been consistent since 2009.
- The Circular Economy contributed £4 Billion to Scottish GDP in 2021.
- CE Jobs have an above average labour productivity and compensation per FTE employee when compared to the economy-wide average in 2021 (16% higher in 2021).
- CE jobs are paying higher wages per FTE worker than the economy-wide average.
- Employees in the inherently circular sectors were mostly male, but the gender pay gap was lower than the economy-wide average.
- Evidence that the circular sectors are contributing to economic growth due to above average labour productivity, commercially oriented outputs of the circular sectors, and the sale of circular outputs to sectors that are highly integrated with the rest of the economy.
- There is also evidence of a relative shortage of circular economy skills due to these relatively high wages being offered and the large amount of overtime hours being worked.
Frequently asked questions (FAQs)
Why has the Circular Jobs Tracker been created?
The Circular Jobs Tracker provides a clear and data-driven analysis of the jobs market and within inherently circular sectors in Scotland. It provides a valuable and detailed insight to not only where circular activity is already happening and the economic value it creates, but also to the circular opportunities available – strengthening Scotland’s case for a transition towards an entirely circular economy.
How does the Circular Jobs tracker differ from previous reports?
The Circular Jobs Tracker uses a robust methodology that differs from previous studies, drawing on granular 5-digit SIC data, and measuring jobs in full-time equivalents (FTE) rather than in headcounts. While previous reports such as the State of the Circular Economy report provided valuable insight into the economic growth opportunity of a circular economy, this approach goes further to give quantitative analysis of not only circular jobs, but also productivity, earnings and sectors.
What does this evidence mean for Scottish businesses?
This report’s findings highlight sectors where circular activity is already driving significant growth and opportunity and quantifies it. This allows businesses to build a better understanding of what value the circular economy can bring and identify areas to invest and develop in their own organisation as Scotland moves towards circularity.