Scotland's circular economy sectors generated £37.33 in gross value added per hour worked in 2021, nearly £5 more than the £32.22 Scottish average, according to Zero Waste Scotland's first Circular Economy Jobs Tracker.

The research, published today, found 56,000 full-time equivalent jobs in inherently circular sectors, accounting for 2.6 per cent of Scotland's total workforce. Labour productivity across these sectors was 16 per cent higher than the economy-wide average, and workers earned an average of £39,500 per year, approximately five per cent above the national figure.

The tracker puts the circular economy's total contribution to Scotland's GDP at around £4 billion in 2021. Zero Waste Scotland (ZWS) said that figure is equivalent to approximately one and a half times the GDP of Scotland's spirits and wines industry, and roughly double the value generated from vehicle sales.

Reuse and repair lead the way

The data shows that employment is concentrated in reuse and repair industries, with automotive repair accounting for roughly a quarter of all CE jobs in Scotland, with the remainder spread across recycling and resource harvesting activities.

Employment total stands at 56,000 FTE roles, which is broadly consistent since 2009, though the tracker found indications of skills shortages in the sector. Relatively high wages and elevated overtime levels suggest demand for circular economy expertise may be outstripping supply.

The tracker found that workforce is predominantly male, although the gender pay gap in circular sectors is slightly narrower than the economy-wide average.

"For too long, the circular economy has been seen as an environmental ambition, but this research shows it is already an economic asset," said Ciaran McGuigan, Chief Executive of Zero Waste Scotland.

"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."

The tracker defines inherently circular sectors using Standard Industry Classification codes whose descriptions identify them as producing a circular good or service, or participating in a circular activity. These cover reuse, repair, recycling and resource harvesting. Notably, waste treatment and collection activities have only beem included where they relate to the production of secondary materials.

The findings build on Zero Waste Scotland's State of the Circular Economy report, which estimated the broader circular economy's contribution at £7.11 billion in GVA in 2021, supporting 81,447 jobs and representing 4.7 per cent of total GVA. That wider figure, produced using the European Circular Economy Monitoring Framework, covers a broader set of 127 circular activities beyond the inherently circular sectors examined in the jobs tracker.

The Circular Economy Jobs Tracker was a commitment under the Circular Economy (Scotland) Act 2024, which requires Scottish Ministers to publish or refresh a circular economy strategy at least every five years. The Scottish Government's draft circular economy strategy, currently under consultation, notes that managing 10,000 tonnes of waste creates up to 296 jobs in repair and reuse, compared with 36 in recycling or single figures in disposal.

The full Circular Economy Jobs Tracker report is available on the Zero Waste Scotland website.