Investment, jobs and gross value added

The figure depicts the contribution over time of circular economy sector to investments, value added and jobs in the EU. Investments and value added are referred as percentage of the Gross Domestic Product (GDP) of the EU economy, and jobs to the total number of jobs in the EU. The circular economy sectors cover mostly the collection of waste, recovery of materials, recycling, sale of waste/scrap and second-hand goods, and repair and reuse services — the sector classification does not fully comprehend all circular economy activities.

Data shows the so far limited contributing of the circular economy sectors to value added and jobs, and the limited investment level targeting the sectors. The progress for all indicators is slow but steady, with a 9% increase for investment, more than 2% for jobs and 5% for value added, between 2015 and 2019. 

The European Green Deal launched a concerted strategy for a climate-neutral, resource-efficient and competitive economy. A few months later, the 2020 Circular Economy Action Plan stated that scaling up the circular economy will be decisive for achieving this Green Deal vision. Moreover, it will also serve to leaving no one behind. Circular economy sectors such as recycling, repair and reuse, are job-intensive, and are therefore expected to contribute to increased local employment.

The Circular Economy Monitoring Framework, set up to measure the progress of the Circular Economy in the EU, includes a set of indicators to follow track of the competitiveness and innovation of circular economy sectors. This includes data on investments, jobs and value added, and on innovation. The assessment here focusses on the contribution of the circular economy to the first three aspects, based on official data from the Circular Economy Monitoring Framework.