The Role of the Circular Economy in the Labour Market and Employment Rate in the European Union

Abstract

The aim of this study is to examine the role of the circular economy in employment and to prove this with statistically significant results. The paper includes an analysis of the 27 European Union Member States along specifically selected indicators. The methodology of the study is based on general statistical approaches, and the results obtained with correlation and regression methods are compared with cluster and compatibility analysis. The background to the topic is the fact that the circular economy not only promotes sustainability, but also generates dynamic labour market changes that offer new opportunities for both workers and enterprises. By focusing on recycling waste and extending the life of products, this economic model encourages the emergence of new industries. Consequently, the shift towards innovative practices is also stimulating the growth of the service industry. However, while the circular economy model has never been more popular, the average EU-27 circular material use rate has increased from 11.0 % in 2012 to just 11.4 % in 2021. The research area of the paper was influenced by the availability of statistical data. The results can be used as situation analysis to green the employment market and labour economics.