A circular economy is not just about materials but also about people. Understanding how jobs are distributed across sectors is essential to assess the socio-economic potential of a circular transition, as employment shapes both the pace and direction of change and reflects the adoption of circular practices. This analysis highlights where circular activities are already present, uncovers untapped opportunities for direct circular job creation, and identifies priority areas for intervention in Brazil’s workforce.
Brazil’s labour market is large and varied, reflecting the country's geographical and economic diversity. Social and economic disparities remain stark: wealth is concentrated among the highest-income groups [132], the informal economy is large and pervasive, and there are notable disparities between regions.
Informality remains a defining feature of Brazil’s labour market, especially in sectors linked to circular activities such as waste collection [133]. Informal work historically acts as a buffer in times of economic downturn, but even here the losses were high: between 2019 and 2020, 70% of lost jobs were in the informal economy [134]. In 2019, informal occupations such as domestic work, street vending, and waste picking accounted for 14 million jobs [135].
In Brazil, the shift to a circular economy holds great potential for job creation, but also poses risks. While circular transitions can generate new roles, they may not align with the skills or locations of displaced workers [136]. Agricultural workers and others in routine manual jobs are particularly vulnerable due to lower geographic and occupational mobility [137]. Green jobs remain concentrated in urbanised southern regions, exacerbating spatial inequality [138]. Furthermore, education and skills development are essential for a just transition. As of 2019, over 6% of Brazilians aged 15 or older were still illiterate, and 40% of adults lacked primary education [139][140]. While Brazil has launched promising initiatives, such as the National Climate Curriculum, [141] there is a need for expanded technical and vocational education, especially for workers in low-skilled occupations in environmentally sensitive sectors. [142]
A just transition should prioritise safe, decent, and well-paid jobs for those most affected by environmental and economic shifts. [143] Circular jobs refer to employment in the circular economy sectors, where:
Green jobs, on the other hand, include jobs in renewable energy, pollution control and environmental protection/conservation. Brazil has laid a foundation for supporting both green and circular employment through national strategies on solid waste, bioeconomy, and green growth. [144][145][146] These policies promote inclusion and sustainable development, but most lack clear implementation plans or measurable targets. To harness the full potential of a circular transition, future policy should set ambitious, trackable goals for skills development, job creation, and the integration of informal and vulnerable workers (see Recommendations section). [147]
The Circularity Gap Report is an initiative of Circle Economy, an impact organisation dedicated to accelerating the transition to the circular economy.
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