Circular economy could provide NI jobs boost
Edward Perchard | 30 September 2015

More than 13,000 jobs could be created in Northern Ireland by 2030 if the country moved to a ‘bolder, transformative’ circular economy, according to a report released today (30 September).

Job Creation in the Circular Economy – Increasing Resource Efficiency in Northern Ireland’ also says that the switch could lead to a ‘lasting reduction in unemployment of 21,000’.

It was produced by the ReNEW (Resource innovation Network for European Waste) network in conjunction with the Waste & Resources Action Programme (WRAP) to encourage understanding of the potential of the circular economy.

ReNEW is a project based at Queen’s University Belfast that brings together researchers, public authorities and businesses from North West Europe to seek new ways to extract resources from households and industrial waste.

In the report, ReNEW found that jobs could be created at various skill levels in a number of sectors including food and drink, biorefining and the bioeconomy. In particular, it says, the role of renewable energy and smart energy grids in enabling development of manufacturing will be a key factor in realising growth potential.

Report findings

According to figures set out in the report, in early 2015 there were 816,000 people in employment in Northern Ireland, and 54,000 in unemployment (6.4 per cent of the labour force).

Since 2004, it says, around 13,000 jobs in ‘mid-range occupations’, including secretarial and administrative jobs, skilled trades, and plant and machine operatives, have disappeared.

An estimated 8,000 people in Northern Ireland are currently employed in circular economy activities, a number that has increase by 12 per cent since 2009. Around half of these jobs, the report says, are in the waste and recycling sector, which has grown ‘substantially’ in line with the increase in household recycling rates in the country (12.5 per cent in 2003 to over 40 per cent in 2015).

As the transition to the circular economy accelerates, the report suggests that the nature of circular economy activities and their employment shares will evolve, with activities surrounding renting and leasing, repair and retail of secondhand goods increasing in number.

These activities would also provide geographically-dispersed employment opportunities, requiring local and regional activity, particularly in the reuse and open-loop recycling sectors.

Circular economy provides environmental and economic ‘win-win’

Commenting on the report, Environment Minister Mark H Durkan said: “Building a circular economy is a win-win for the economy and the environment. It makes sense to keep our natural resources in use for as long as possible through recovery, reuse, repair, remanufacturing and recycling.

“This benefits the environment and can also drive economic growth by unlocking millions of pounds worth of value from materials used in key sectors in Northern Ireland which can drive economic growth. By departing from our traditional economic model of ‘make, use and dispose’, we will be less vulnerable to dwindling natural resources, and increased price instability and energy costs.

“We must work together, across government, and in partnership with business and the community, to ensure that the North is geared up to exploit the exciting opportunities afforded by a circular economy.”

WRAP studies of circular economy employment

WRAP has previously investigated the employment potential of a circular economy in other areas of the UK and European Union.

In January this year, the body released a report, ‘Employment and the circular economy – Job creation in a more resource efficient Britain’, produced by Green Alliance, which found that the current development of a British circular economy would produce 205,000 extra jobs and reduce unemployment by around 54,000 by 2030.

A more ‘transformational’ development of a circular economy, however, could create over half a million jobs, reduce unemployment by over 100,000 and potentially offset around 18 per cent of the expected future losses in skilled employment.

This report was followed up in September with ‘Economic Growth Potential of More Circular Economies’, which estimated that three million extra jobs could be created in the EU by 2030 by an expanded circular economy, with a reduction in unemployment of 520,000.

Read the ‘Job Creation in the Circular Economy – Increasing Resource Efficiency in Northern Ireland’ report.

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