Analyzing the potential of job creation by taking the first step towards Circular Economy: case study of Brazil | Knowledge Hub | Circle Economy Foundation
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Analyzing the potential of job creation by taking the first step towards Circular Economy: case study of Brazil
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This paper presents the job creation potential for Brazil of implementing circular waste management strategies. Making use of job production factors, the author affirms the country could create 109,205 direct jobs if the goal of 30% recycling rate is reached. Moreover, in addition to the gross value in the number of jobs created, this article also detailed the number of these jobs by type of activity (collection, processing, and manufacturing) and by type of material. Finally, the author mentions there could be a further creation of indirect jobs equal to 40,891 jobs.

Problem

Economic projections and social indicators show a future of crisis for the country due to the COVID-19 shock on economic sectors and human well-being. Developed nations have implemented strategies linked to sustainability - mainly related to the circular economy - to overcome this crisis. This article applies the same rationale to explore a 'what if' scenario applying similar strategies in Brazil, mainly related to the waste management sector.

Solution

The promotion of strategies linked to the circular economy could help in the economic recovery efforts while at the same time impacting human well-being through job creation. The waste management sector is a good starting point as it could employ people along different waste streams and types of activities.


Moreover, the country has in place a National Solid Waste Management Policy, which is considered a milestone that represents a regulatory advance in Brazil. With that in mind, the potential for improving the waste recycling rates while at the same time providing secure jobs for waste pickers could be considered a goal worth exploring. This is even more important in terms of decent work conditions as the waste pickers sector in Brazil is considered highly informal.

Outcome

Making use of job production factors, the article shows that circular economy strategies, such as recycling, reuse, and remanufacturing are more beneficial in terms of job creation potential in comparison to incineration and landfill activities. In total, 109, 205 direct jobs could be generated if Brazil reaches the target of 30% recycling rate. Collection activities get 30,194 additional direct jobs, processing activities get 24,020 direct jobs, and finally, manufacturing generates 55,070 direct jobs.


Indirect jobs, created in other sectors that provide equipment and services for recycling plants or manufacturers that use recycled material as an input, could be equal to 40,891 jobs.

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