• Circular sectors generated £37.33 in GVA per hour in 2021 - nearly £5 more per hour than the Scottish average (£32.22).

• The circular economy contributed £4 billion to Scotland’s GDP in 2021.

• 56,000 full-time equivalent (FTE) jobs in circular economy sectors - 2.6% of total Scottish employment.

• Employees in circular sectors earned an average of £39,500 per year - approximately 5% higher than the economy-wide average.

Scotland’s circular economy is not only an environmental necessity – it is a high labour productivity, commercially driven and foundational part of our national economy.

New analysis published today by Zero Waste Scotland shows that inherently circular sectors1 generated £37.33 in Gross Value Added (GVA2) per hour worked in 2021, compared with £32.22 across the Scottish economy as a whole – nearly £5 more per hour.

According to the Circular Economy Jobs Tracker, that labour productivity in circular sectors was 16% higher than the economy-wide average, and translated into a total contribution of around £4 billion to Scotland’s GDP in 2021 – equivalent to approximately one and a half times the GDP of Scotland’s spirit and wines industry, and roughly double that generated from vehicle sales.

The tracker reveals 56,000 full-time equivalent jobs were held in inherently circular sectors in 2021, accounting for 2.6% of Scotland’s total workforce. These levels have remained broadly consistent since 2009.

Circular employment is concentrated in Reuse and Repair industries, with automotive repair making up roughly a quarter of circular jobs. Workers in circular sectors earned an average of £39,500 per FTE, slightly above the economy-wide average, while employees were mostly male despite the gender pay gap being slightly lower than the economy-wide average.

The analysis finds evidence that circular sectors are playing a foundational role in Scotland’s economic growth due to above average labour productivity, commercially oriented outputs, and the sale of circular outputs to sectors that are highly integrated with the rest of the economy.

There are also indications of skills shortages, with relatively high wages and elevated overtime levels suggesting that demand for circular economy expertise may be outpacing supply.

Ciaran McGuigan, Chief Executive of Zero Waste Scotland, said:

“For too long, the circular economy has been seen as an environmental ambition, but this research shows it is already an economic asset.

“Circular jobs are integral to Scotland’s economy, and circular skills are in high demand.

“Our economy is undergoing a fundamental shift. Our traditional linear approach is reaching its limits with resources tightening and costs rising, and circularity is becoming a matter of economic security. By redesigning our systems to keep materials in circulation, we can strengthen local industries and build resilience at a national scale.

“Circularity drives innovation, unlocks investment, supports business expansion, creates jobs, and lays the foundation for a future-ready economy. This isn’t a distant ambition, it’s already underway.”

ENDS

Editor’s Notes:

1. Inherently circular sectors are jobs defined in the report as: Reuse, Repair, Recycling, and Resource Harvesting.

The list of circular sectors that the Circular Jobs Tracker utilises was constructed by identifying the Standard Industry Classification (SIC) codes whose description defines them as either producing a circular good or service or as participating in a circular activity.

With the exception of waste treatment and collection, these sectors can all be considered to be ‘inherently circular’; meaning that, by definition, they are involved in a circular activity or contributing to the circular economy in some way. With regards to waste treatment and collection activities, only the waste treatment and collection associated with the production of secondary materials were counted within this study.

We recognise that other sectors will be allocating working hours to circular practices, but the products and activities of these sectors are not always circular and therefore are not captured in this model – however, they may be captured in future iterations.

2. Gross domestic product (GDP) estimates are the main measure of UK economic growth based on the value of goods and services produced during a given period.

https://www.ons.gov.uk/economy/grossdomesticproductgdp

Gross Value Added (GVA) is a measure of the economic value created through the production of goods and services. It is calculated as the difference between total output and intermediate consumption. While GVA can be measured for the economy as a whole, it is often used to assess the contribution of specific sectors, industries, or regions to overall economic performance.

https://www.ons.gov.uk/economy/grossvalueaddedgva

3. Link to research: https://www.zerowastescotland.org.uk/resources/circular-jobs-tracker-report

About Zero Waste Scotland

We’re Scotland’s circular economy public body, working with government, business, and communities to rewire the economy from our current “take, make, waste” model to one where we make the most of the materials we have. A zero waste, circular economy is the right choice - for people, planet and prosperity.

More information on all Zero Waste Scotland’s programmes can be found at https://www.zerowastescotland.org.uk. You can also keep up to date with the latest from Zero Waste Scotland via our social media channels - Twitter | Facebook | LinkedIn | Instagram

For media enquires please contact

Niamh Taylor, Communications Consultant

E: Niamh.taylor@zerowastescotland.org.uk

T: 01786 237253 / 07378 605188

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