UK could unlock more than £93 billion and 550,000 new jobs if we take bolder steps towards a circular economy

A new report from global environmental action NGO WRAP shows the scale of opportunities for businesses and jobs across the UK through greater adoption of the ‘Circular Economy’ and calculates the untapped financial benefits in activities ranging from recycling, repair, reuse, second-hand retail, to rental and leasing business models.

Published the day after Chancellor John Healey’s budget focussed on youth employment, apprenticeships and job creation through infrastructure and investment, WRAP’s report POWERING GOOD GROWTH – The Circular Economy Opportunity for Jobs, Manufacturing and Every Region of the UK illustrates how the UK could generate an additional £93 billion Gross Value Added (GVA) and support 550,000 new jobs, by taking bolder steps towards a circular economy.

The findings suggest that circular economy activities such as repair, remanufacturing, reuse, recycling and biorefining can help spread economic opportunity across the UK by creating jobs in every nation and region, strengthening local supply chains and attracting investment into communities undergoing industrial transition.

In 2024, the circular economy sectors supported almost 559,000 jobs across the UK, generating more than £53 billion in GVA. WRAP’s latest examination – updating its 2019 assessment – shows the circular economy continues to provide a substantial employment base, support domestic resource flows, and strengthen economic resilience.

WRAP believes its greatest opportunities lie ahead, and that UK nations could unlock significant economic growth, support productivity and reduce supply chain vulnerabilities by being more circular.

The global NGO’s modelling suggests that by 2035, even a modest progress towards a more circular economy could unlock almost £4 billion of additional economic value and support around 36,000 jobs across the UK. More ambitious adoption of circular business models could generate over £35 billion additional GVA, while a transformational shift could yield more than £93 billion and support a further 550,000 jobs in the circular economy, bringing the total to over one million.

These benefits would be distributed across every region of every nation, contributing to growth and prosperity in every postcode.

Catherine David, WRAP CEO said “There are an additional 550,000 new jobs that the UK could create if we take steps to grow the circular economy – this could be worth £93bn GVA to the UK’s economy by 2035. By creating the right long-term policy and investment environment, we can support key sectors to grow, with new jobs in repair, reuse and remanufacturing. Not only will these actions create economic growth, they will strengthen the UK’s resilience, making our businesses and institutions less reliant on imported resources, as well as making positive contributions to people’s living standards.

“If we embed circularity into the UK’s growth agenda, the benefits will be felt for generations. Our report is essential reading for policymakers and industry leaders.”

WRAP believes there are substantial opportunities ahead, and that the circular economy remains a largely untapped source of productivity and regional economic development. The scale of opportunity increases significantly as we move into higher value activities like remanufacturing, repair and reuse, and leasing or rental business models – as well as developing biorefining industries.

WRAP’s updated analysis shows total circular economy employment increased from 557,639 jobs in 2019 to 558,886 jobs in 2024, indicating that employment has effectively remained static, leading WRAP to warn that future growth cannot be taken for granted. While earlier research identified strong, sustained employment growth across the circular economy the latest figures suggest a period of consolidation rather than expansion.

Wales recorded the strongest growth between 2019 and 2024, with jobs increasing from 24,075 to 26,600 – approximately 10.5% growth.
Scotland experienced strong growth, with employment increasing from 49,090 jobs to 53,600 jobs, an increase of around 9.2%.
Northern Ireland recorded modest growth, increasing from 11,159 jobs to 11,511 jobs, and increase of 3.2%.
England saw employment fall from 473,315 jobs to 467,175 jobs in 2024, a decline of approximately 1.3%.
The situation in Wales and Scotland suggests that long-term policy commitment and institutional support may contribute to creating conditions that favour growth.

To accelerate future expansion, WRAP is making the following recommendations to governments and businesses:

Build on lessons from Scotland, Wales and Northern Ireland to aid delivery of a Circular Economy Growth Plan for England. The UK Government’s commitment to a Circular Economy Growth Plan is key to ensuring benefits are delivered across England.
Embed circular economy objectives within industrial and economic policy. The circular economy should be recognised first as an economic opportunity that leads to environmental outcomes.
Strengthen support for repair, refurbishment and reuse. Repair and reuse sit at the heart of circular economy ambitions as they keep products in use for longer and retain more embedded value within the economy.
Improve measurement and reporting of circular economy activity. Particularly activities difficult to measure using existing economic classifications, including remanufacturing and emerging circular business models.
WRAP has set out series of pathways by which the UK could accelerate circular economy activities and realise wider benefits by 2035. The scenarios show a basic Incremental Progress and become progressively more ambitious to show Accelerated Adoption of circular business models across the economy, up to an ultimate step-change Circular Economy Transformation, which could also add +37 percentage points to the UK’s recycling rate and increase remanufacturing by 50%.

While improvements in material recovery remain important, biorefining and higher-value activities such as remanufacturing, repair, reuse and (rental / leasing activities (servitisation*) increase resource productivity, and support more diverse employment opportunities. Many circular economy activities are also geographically dispersed, as they rely on local collection networks, repair services, reuse operations or reprocessing infrastructure meaning employment is located across a range of communities, rather than concentrated in a small number of economic centres.

The report also highlights that in regions with higher unemployment such as the North-East, the circular economy could contribute significantly to the job market with opportunities across a range of different skill levels, and jobs ranging from highly skilled engineering and technical roles through to logistics, operational and customer-facing positions.