CIRCULAR ECONOMY SECTOR: EMPLOYMENT, VALUE ADDED, INVESTMENT

    Descrizione 1
    Update date
    Authors

    Renato Marra Campanale

    Abstract
    Immagine
    Abstract

    In Italy, from 2005 to 2021, the added value of the circular economy sector grew by one percentage point (+1.1) compared to the Gross Domestic Product. The growth in investments (+0.40 percentage points relative to GDP) and employment (+0.2 percentage points relative to total Italian employment) was weak during the period considered.

    Description

    The indicator includes data on employment, added value, and investments in the circular economy sector. The methodology developed by Eurostat to derive these statistical data on economic activities related to the circular economy is based on: 

    - a conceptual framework that includes the definition of the circular economy and the criteria for defining related economic activities. The latter point relies on the “10R framework for circular economy” classification (refuse; rethink; reduce; re-use; repair; refurbish; remanufacture; repurpose; recycle; recover).

    - the identification of relevant economic activities within the integrated system of classifications of economic activities, goods, and services (NACE, CPA, and PRODCOM) and the related procedure for estimating the variables employment, added value, and investments.

    Purpose

    Measuring the contribution of economic activities to the circular economy, in terms of employment and monetary value (added value and investments).

    Policy relevance and utility for users
    It is of national scope or it is applicable to environmental issues at the regional level but of national relevance.
    It can describe the trend without necessarily evaluating it.
    It is simple and easy to interpret.
    It is sensitive to changes occurring in the environment and/or in human activities
    It provides a representative picture of environmental conditions, environmental pressures, and societal responses
    It provides a basis for international comparisons.
    Analytical soundness
    Be based on international standards and international consensus about its validity;
    Be theoretically well founded in technical and scientific terms
    Lend itself to being linked to economic models, forecasting and information systems.
    Presents reliability and validity of measurement and data collection methods
    Temporal comparability
    Spatial comparability
    Measurability (data)
    Adequately documented and of known quality
    Updated at regular intervals in accordance with reliable procedures
    Readily available or made available at a reasonable cost/benefit ratio
    An “adequate” spatial coverage
    An “appropriate” temporal coverage
    Main regulatory references and objectives

    Communication COM(2020) 98 final of 11 March 2020 “A new Circular Economy Action Plan – For a cleaner and more competitive Europe”

    Ministerial Decree No. 259, dated 24 June 2022, which approves the National Strategy for the Circular Economy as a programmatic document aimed at identifying the actions, objectives, and measures to be pursued in defining institutional policies to ensure an effective transition towards a circular economy.

    DPSIR
    Response
    Indicator type
    Descriptive (A)
    Policy effectiveness (D)
    References

    Eurostat metadata "Private investment, jobs and gross value added related to circular economy sectors": https://ec.europa.eu/eurostat/cache/metadata/en/cei_cie011_esmsip2.htm

    Limitations

    -

    Frequenza di rilevazione dei dati
    Annuale
    Fonte dei dati
    EUROSTAT (Ufficio Statistico delle Comunità Europee)
    Data availabilty

    Dataset Eurostat:

    https://ec.europa.eu/eurostat/databrowser/view/cei_cie011/default/table?lang=en&category=cei.cei_cie

    https://ec.europa.eu/eurostat/databrowser/view/cei_cie012/default/table?lang=en&category=cei.cei_cie

    Spatial coverage

    National

    Time coverage

    2005-2021

    Processing methodology

    The indicator is calculated with a methodological framework according to the following three steps.

    1. Conceptual framework. The delimitation of economic activities related to the circular economy was determined through a classification of the circular economy based on the purpose of the activity (sector classification by purpose).

    2. The activities relevant to the circular economy were identified and compared with the integrated system of economic classifications (NACE, CPA, PRODCOM). Different estimation methodologies are used to identify the share of “circularity” in each economic activity.

    3. Data delineation and compilation.

    More information is available in the “Annexes” section of the Eurostat metadata: https://ec.europa.eu/eurostat/cache/metadata/en/cei_cie011_esmsip2.htm  

    Update frequency
    Year
    Qualità dell'informazione

    The indicator is calculated in accordance with the characteristics of transparency, accuracy, consistency, comparability, and completeness required by the reference methodology.

    State
    Medium
    Trend
    Steady
    State assessment/description

    The state assessment can be considered to have an average standing, as in 2021 all three variables analyzed for Italy do not significantly differ from the European average. Specifically: the share of employment in the circular economy sector in Italy is 2.4% (compared to 2.1% in Europe); the share of value added by the circular economy sector to GDP in Italy is 2.5% (2.1% in Europe); and the share of investments in the circular economy sector to GDP in Italy is 0.7% (0.8% in Europe) (Tables 1 and 2).

    Trend assessment/description

    Analyzing the trend from 2005 to 2021, the performance has remained fairly stable, showing a slightly stronger growth in the value added by the circular economy sector, which increased by 1.1 percentage points (Table 1 and Figure 1).

    Comments

    Innovation and investments — in eco-design, secondary raw materials, material recycling processes, and industrial symbiosis — are key elements in the transition to a circular economy.
    The circular economy can significantly contribute to job creation and economic growth, while also reducing inequalities and enhancing the resilience of the economic system. Economic activities closely linked to the circular economy (recycling, repair, reuse) are particularly job-intensive. The growth of these activities indicates whether circular economy policies are capable of delivering the expected outcomes.

    In Italy, from 2005 to 2021, only the value added from these activities increased by more than one percentage point (+1.1) compared to the reference variables (Gross Domestic Product for value added and investments; total employment for employment in the circular economy sector). The growth of investments (+0.40) and employment (+0.2) was rather weak over the period considered (Table 1 and Figure 1).

    Data
    Thumbnail
    Headline

    Figure 1: Trend in the intensity of employment, value added, and investments in the circular economy sector

    Data source

    Eurostat

    Headline

    Table 1: Employment, value added, and investments in the circular economy sector in Italy

    Data source

    Eurostat

    Headline

    Table 2: Circular economy sector employment, value added, and investment shares relative to total figures in Europe

    Data source

    Eurostat

    English