Circular Economy and Job Creation: A Comparative Approach in an Emerging European Context

Abstract

The circular economy encompasses a systematic approach to sustainable development that enables countries, companies, and consumers to reduce environmental damage and to close the life cycle of products. Our paper investigates the main challenges facing Eastern European countries, particularly Romania, in the development of the circular economy while identifying potential solutions and the most appropriate public policy measures in this field. This research aims to highlight the unique perspectives of Romanian scholars on the circular economy experiences of former communist countries in Central and Eastern Europe, focusing on the opportunities and challenges these nations face as newer EU members. The research’s main finding is that while the implementation of circular economy principles in Romania is difficult due to legal, cultural, and financial barriers, leveraging EU financial support can lead to the creation of labour market opportunities and sustainable economic growth. Also, our second finding shows that an increase in research activity and a better focus on practical implementation strategies are needed to fully achieve the potential of the circular economy in Romania.

1. Introduction

The circular economy proposes a new model of production and consumption which ensures sustainable growth over time. Under this model, resources can be optimised, the consumption of raw materials reduced, and waste recovered through recycling or by giving it a second life as a new product.

According to some analyses [1], the concept of a circular economy brings a sustainable approach to economic growth. The existing convergence between the principles of the circular economy and those of sustainable development has been underlined by a series of recent studies [2,3,4] which show that both must consider environmental protection and some aspects of social equity. Some studies [5,6,7] show that at the EU level there has been, in recent years, a constant effort for boosting the circular economy and sustainable development through a series of regulations, strategies, and action plans.

In many recent approaches regarding the primary pillars of the circular economy, the importance of the “3 Rs” (reuse, recycling, repair) is emphasised [8,9,10]. The “3 Rs” form the cornerstone for the principles of the circular economy while creating the premises for the sustainable use of resources and the reduction of waste, hence contributing to an economic development that protects the environment for the next generations.

The transition from the linear economy to the circular one is linked to the fact that the exhaustive use of resources causes multiple concerns for both governments and the business environment, hence prompting the need to identify the most effective response to the challenges of growing demand in consumer economies and to the challenges of climate change. Currently, the main issue is to replace the current consumption model based on a production–consumption–waste model with a circular economy model based on a production–consumption–reuse model.

Nowadays, it is increasingly evident that the circular economy remains pivotal for achieving the goals of sustainable development in the European Union. There are several EU initiatives and a generous legal framework dedicated to various objectives of sustainable development—such as Fitfor55 and REPowerEU, which are playing a critical role in boosting the circular economy across the Member States, while targeting the advancement of climate neutrality for the entire European economy. Moreover, the development of a circular economy remains crucial under the present complicated economic environment dominated by the widespread negative effects of the Russian–Ukrainian war and by the remaining imbalances existing in the EU’s economy after the pandemic crisis. Firstly, the circular economy directly contributes to all the key goals of sustainable development by minimising waste, reducing greenhouse gas emissions, and promoting “green” production and consumption patterns. By extending the lifecycle of products and materials, the circular economy reduces the carbon footprint of industries and supports the EU’s target of becoming climate-neutral by 2050. Secondly, the development of the circular economy may mitigate the economic disruptions of the greening policies by promoting resource efficiency and reducing dependency on raw materials through recycling, reusing, and remanufacturing. This localises supply chains and enhances economic resilience, reducing vulnerability to external shocks. For the EU countries that can be considered relatively “late” members of the European family, like Romania (given its accession from 2007), the circular economy may prove to be an effective catalyst in helping to reduce the development gap, in terms of sustainable development, when compared with more developed European countries. Hence, nearly two decades after her accession, Romania should focus more on the circular economy goals in all her national strategies, but more importantly in the National Recovery and Resilience Plan (NRRP). Romania’s plan already includes measures on the digitalization of public administration and public services and improvements in the healthcare and education sectors, in an approach that considers regional disparities. However, important reforms and investments are necessary to achieve a better and sustainable future for this country, since its communist legacy has created imbalances. Consequently, new measures for a strong support for the business environment and research and innovation are required. Business support, through for instance state aids, structural funds, and other forms of subsidies, could enable more innovative green start-ups. These can bring key technologies and know-how onto the Romanian market, which will boost sustainable development in the economic sectors, hence achieving economic growth without affecting future generations. It should be noted that although REPowerEU plays an important role in Romania’s NRRP, through many measures for green transition, there is still room for significant progress in the field along with more ambitious targets. For instance, a larger financial support could be needed to accelerate the deployment of renewable energy sources, the pace of energy efficiency renovations, and the requalification of the workforce towards green skills.

Even though the circular economy is not a new research topic, there are few studies that address the implications of circularity adoption in CEE countries. Many studies have investigated the progress in achieving the transition from the linear model, and have underlined the barriers in implementing circularity in each economic field. However, more research on the impact of the circular economy on the development of CEE countries and how this transition impacts the labour market is required. Green jobs require employees to develop new skills and play a crucial role in the company’s ongoing evolution. This change takes place very quickly has many implications. On the one hand, if the employees are not well trained and in line with the actual market’s needs, they will not accomplish their tasks, and this will decrease work productivity. On the other hand, if the education systems do not adapt to the new requirements of the private sector, the gap between what the companies need and what the labour force can offer will amplify.

Considering the lack of studies regarding the adoption of the circular economy in CEE countries and the necessity of understanding more about how the transition from the linear economy to the circular one impacts the labour market, the present study investigates the contribution of the circular economy to sustainable economic growth and job creation in one of the CEE member states, namely Romania. Understanding the barriers to adopting circularity in a country that has faced significant socio-economic challenges and political instability in recent years is essential for estimating the success rate of implementing the European Union’s ambitious plan to achieve climate neutrality by 2050 across multiple sectors. This understanding enables experts and authorities to allocate resources more effectively and raise awareness where necessary. The success of circularity implementation largely depends on citizens’ willingness to change their behaviour. Therefore, we explored the impact of circularity on sustainable economic growth in a country that adopted a consumerist economic model after 1990, following a communist period marked by widespread shortages. These shortages led the population to develop consumption habits that generate excessive waste which contradict the principles of sustainability. In this regard, we have chosen to focus on Romania, one of the most recent Member States of the EU, because it can be relevant to other similar countries in the EU that are facing many obstacles in the adoption of circularity. Former communist countries are reluctant to change and adopt new concepts. Citizens are often reluctant to embrace new business models and tend to adopt green initiatives at a slower pace. They also view sustainable practices with scepticism, as these often come at a higher cost, making them unwilling to pay more for environmentally friendly goods or services. Another particularity can be seen in the labour market, as the older generations have been used to getting a job and keeping it until they retire. The premise that the circular economy requires a significant shift in the labour market—affecting skills, working models, and job availability—creates a high level of stress among citizens. This is largely because only 35 years have passed since the end of communism, a period still associated with job security. Therefore, the adoption of a circular economy is a process of many changes that may have an impact on more countries than Romania. In this perspective, a detailed overview of the impact of the circular economy on the labour market is useful for many stakeholders, including academia, decision makers, private companies, and even representatives of NGOs.

The study aims to bring the perspective of Romanian experts on the experience of former communist countries that later joined the European Union, and to present the challenges and opportunities brought by the specifics of former communist economies in the perspective of circular economy development. The research methodology has a mixed design based both on an exhaustive analysis of the literature, doubled by bibliometric interpretation of the obtained data, and on the use of interviews with Romanian experts on the main challenges regarding the implementation of the circular economy. Against this background, the following sections of the article will present a synthesis of circular economy issues in the literature, the results of the bibliometric analysis, and the conclusions highlighted after interviewing experts in the field.

2. Review of the Scientific Literature

2.1. The Interrelation Between Circular Economy and Sustainable Economic Growth

Currently, economic transformations and their social implications are analysed through two opposing theoretical perspectives: the de-growth proponents—comprising socialist economic schools and new & post-Keynesian (NPK) scholars [11,12]—and the proponents of economic development, particularly those aligned with Austrian Economics (AE) [13,14,15]. The de-growth school adopts a critical stance toward transformative processes such as digitalization and the green transition, advocating for a normative economic framework that prioritizes stability over change. Conversely, the development-oriented perspective embraces these transitions, viewing them as catalysts for economic growth and societal progress, adhering to a positive economic approach that seeks to elucidate complex social phenomena.

This study advances a synthesized approach that integrates insights from both AE and NPK traditions. While AE favours deregulation and minimal state intervention [16], NPK scholars examine the implications of state involvement, particularly through subsidies for circularity and green development [17]. This review incorporates both mainline AE perspectives on circularity and job creation and core NPK contributions [18], offering a comparative analysis of their respective views on the principal drivers of the circular economy and labour market transformations. Specifically, it examines how the transition from material-intensive to circular markets and the broader green transition—encompassing green energy, waste management, green employment, and sustainable development—acts as a key factor in economic restructuring.

By adopting a mixed approach, this study provides a nuanced perspective on the ongoing theoretical debate regarding circularity, highlighting the shifting economic landscape and its social ramifications. The prevailing mainstream view, predominantly represented by NPK, tends to oppose unregulated change in favour of centralized economic control [19]. NPK scholars have identified several deterrents to circular economy adoption, including job insecurity [20] and the great decoupling effect [21]. Some argue that resistance to change stems from the high costs associated with learning and adaptation, as well as concerns over potential losses within the current economic model [22]. Nevertheless, empirical evidence suggests that, at least within EU Member States, the Green Deal has set in motion an irreversible transformation, necessitating proactive policy measures to integrate green principles into an evolving global economic environment [23].

From an AE standpoint, economic thought remains rooted in material production, assuming homogeneous and self-renewing production factors [24], full employment, and the benefits of green and digital transitions [25]. Recent scholarship suggests that the circular economy could facilitate a transition toward wellbeing economics (WBE) [26]. Other perspectives argue that the emergence of talent capitalism (TC) will reshape business culture, employment structures, and labour relations within the green economy [27]. This evolving form of capitalism underscores the potential of green technologies and the green transition not as threats to employment but as drivers of job creation and economic renewal [28].

Ghazanfari [29] showed that the progress of the circular economy is inextricably linked to the development of non-polluting energies, especially renewable ones, and, in recent years, the EU has firmly committed itself to the development of such “green” energies that can provide energy security to European citizens without affecting the environment.

Within EU legislation, there are currently several general regulations (such as the Circular Economy Action Plan, the Circular Economy Monitoring Framework, the Circular Economy Legislative Package, and the EU Bioeconomy Strategy) that set the main directions of action for the transformation of the EU’s economy into a circular economy. All of those initiatives are supporting the rational use of existing resources and the sustainable management of waste, while encouraging a conscientious approach towards environmental protection during all economic activities.

In the EU, the circular economy has gained momentum in recent years due to several drivers such as environmental awareness, economic opportunities, technological advancements, and collaborative initiatives. Environmental protection is considered to be at the core of initiatives regarding circular economy implementation by recent research [30,31,32]. Among the opportunities for circular economy advancement, some articles [33] have mentioned that an increasing awareness of environmental issues among consumers and businesses has fuelled demand for sustainable products and practices. Some analyses have pointed out that the circular economy presents significant economic opportunities, including job creation [34], innovation [35], and cost savings [36]. Furthermore, other studies [37] have highlighted that businesses are recognizing the potential for revenue generation through recycling, remanufacturing, and the development of eco-friendly products and services.

Zhu et al. [38] pointed out that circular economy principles can be highly relevant for the economic development of Central and Eastern European (CEE) countries, particularly considering their former communist past. The authors showed that CEE countries (as developing and transition countries) registered a progressive increase in their per capita stocks, but their socioeconomic circularity remained at a low level. The same analysis highlights how proper waste management systems and policy enforcement are needed to maximise recycling and increase circularity, particularly, in Bulgaria and Romania. While the practical implementation of a circular economy in CEE countries poses some significant challenges [39], there are also ample opportunities brought by the main development goals of this type of economy. Such opportunities for CEE countries are related to the sensu stricto definition of the circular economy that has a narrow focus related to slowing and closing resource loops [40].

While “slowing” refers to the design of long-life goods and product-life extension (i.e., service loops to extend a product’s life, through repair and remanufacturing), “closing” can end the loop between post-use and production. For CEE countries, improving their circular economy performance could bring more focus on the technological cycle of resources; hence, resulting in benefits in innovation and competitiveness [41]. The mentioned study shows that the greatest impact on circularity is determined by indicators related to competitiveness and innovation, which together with sustainability and resilience indicators account for two thirds of the overall circular economy goals.

For Romania, as a member of the CEE countries, the circular economy brings great opportunities to converge with other European countries [42] in terms of green energy, green jobs, green transport, environmental protection, and the sustainable use of resources. While Romania has registered important progress in all circular economy indicators, notably in the post-accession time frame, recent studies have shown that there are still some barriers to the development of the circular economy [43]. The key obstacles for circular economy development in Romania are related to illegal waste management [44], a lack of knowledge [45], and a low level of investment in circular technologies [46]. Mocanu et al. [47] showed that further development of circular economy business models in Romania requires the need for education and awareness among consumers to implement the practices of the circular economy. For Romania, the circular economy offers a pathway towards sustainable economic development [48], addressing both the challenges inherited from its communist past and the opportunities presented by global trends towards resource efficiency and environmental sustainability.

2.2. The Interrelation Between Circular Economy and Job Creation

Laubinger et al. [49] underlined that the transition to a circular economy could bring labour market changes, such as new job creation (stimulated by public policies), job replacement (from resource-intensive activities to circular activities), job destruction (lost without replacement), and job redefinition (towards more resource efficiency and circularity). The creation of green jobs in all sectors (agriculture, manufacturing, research and development, public administration, and services) aims at preserving or restoring environmental quality through employment [50,51].

The circular economy has a high potential for job creation, estimated at more than 1 million jobs in the former EU27 by 2030 [52]. The main challenge is to ensure that greening policies positively impact employment and that improved education, training systems, and employment policies effectively support the green transition by aligning skills with jobs throughout the process.

Padilla-Rivera et al. [53] showed that employment was the social aspect most often cited in their circular economy literature review (60 articles). The authors highlighted the importance of promoting circularity-based economies and have shown that governments must be involved by proposing new policies and incentivizing their development to create more jobs.

Green job creation is associated with a new approach to business management, aiming to prevent environmental degradation and reduce unemployment [54,55,56]. Green jobs are essential for protecting the environment and the labour market, combining sustainability principles [56,57,58].

Moreno-Mondejar et al. [59] highlighted that a circular economy implies optimising resource efficiency but also means job opportunities for sustainable growth. The experts concluded that there are two ways to assess the direct impact on employment; one focuses on changes in employment focusing on the green industries, and the other involves counting the jobs created by companies that adopt green technologies and the effects on employment, considering the specific circular and innovative strategies at the firm-level [27,59].

Circular economy activities lead companies to an important change in their human resources management, because some practices are typically complex and require a high command of various skills that can be obtained through intensive training or by hiring employees with superior technical competencies [27,60].

Drakulevski & Boshkov [61] argued that increasing resource efficiency through the development of circular economy sectors can determine a balance between structural demand and supply in European labour markets, which increases employment. A circular economy creates added economic value, with more labour using fewer material resources. Sumter et al. [62] surveyed to understand the use of and expertise in circular economy competencies for design, which serve as a foundation for the development of circular economy-based methodology and high education curricula. They concluded by presenting a set of nine key competencies for design in a circular economy: (1) Circular Systems Thinking, (2) Design for Recovery, (3) Design for Multiple Use Cycles, (4) Circular Business Propositions, (5) Circular User Engagement, (6) Circular Materials and Manufacturing, (7) Circular Impact Assessment, (8) Circular Economy Collaboration, and (9) Circular Economy Storytelling.

Vona et al. [63] considered that building and consolidating a comparative advantage (in sectors where demand will grow very rapidly) is another reason to consider skills development for green and low-carbon technologies as a key strategic investment of the European Green Deal. European regions may have different needs regarding skills required by the labour market to build or strengthen comparative advantages.

In their 2020 study, Pasnicu & Ciuca [64] highlighted the implications of green procurement on the Romanian labour market, in the context of the transition to the ecological economy. They described structural imbalances in the labour market in the participation of young, old, and rural people, simultaneous with a deficient matching of the educational offer with the demands of the labour market. Tănasie et al. [65] stated that in Romania, government policies to support the green economy have been inconsistent and inefficient; therefore, the motivation of investors and people as future employees in green jobs must be considered, regarding the transition conditions. Modoi & Mihai [66] opined that Romania is still a landfill-based country, where linear economy practices prevail in the waste management sector and environmental government policies need to be further addressed to stimulate the best circular business initiative. This includes the opportunity to create new jobs in environmental treatment activities that the simple operations from the first stages of e-waste recycling can produce locally and regionally. Nica et al. [46] concluded that to ensure a fair and equitable transition to a circular economy in Romania, it is essential to facilitate equal access to resources, training opportunities, and technology with the aid of social and economic support programs to assist vulnerable and disadvantaged groups, in a way as not create inequalities, but rather to encourage sustainable development for all.

This overview on the impact of the circular economy on the labour market has shown a lack of empirical studies related to green job creation, redefinition, and replacement towards more resource efficiency and circularity in Romania. Therefore, to add value to our research on the interrelation between the circular economy and job creation in Romania, we will extend it with a systematic literature review in the Web of Science database, using VosViewer software (version 1.6.20).

3. Research Methodology

In order to answer the present study’s aim, the research employs a mixed methodological design based both on an in-depth literature review overview (conducted with the bibliometric tool) and on thematic analysis of expert interviews (

Table 1. The methodology design.

Research Phase	Description	Objectives
Research Phase I	Aliterature review of studies related to the implementation of circular economy in CEE countries	(i) Identifyingthe gap in the literature (ii) Identifying the most relevant topics covered by the literature to use them as a baseline for designing the interview guide
Research Phase II	Systematic review of studies that investigated the implementation of circular economy in CEE countries	(iii) Finding the research trends and using the results to finalise the interview guide
Research Phase III	Conducting semi-structured interviews	(iv) Building an overview ofthe impact of circular economy on the labour market in a CEE country (Romania)

Source: authors’ elaboration.

). Since the subject is not often approached in the literature, the focus of research was to complete the knowledge regarding the impact of the circular economy on CEE countries with the opinion of relevant experts in the field from Romania. We believe that such a dual approach can better emphasise the goal of our research, which is to highlight how the circular economy can also be a driver for job creation in CEE countries, with a focus on Romania. We have selected expert interviews for our analysis since this method involves identifying, analysing, and reporting patterns (themes) within data. This approach is flexible and can be used to provide a detailed, nuanced account of the data.

Data collection

The research was divided into three main stages. The first research phase involved the literature review of the most relevant sources in the field, with a focus on the impact of the green economy on job creation in Romania and in the CEE region. The data were completed using the results from the second research phase, which consisted of a bibliometric analysis of the studies in the field, conducted in CEE countries, with the scope to find gaps in the field and to structure the interview guide. The third research phase involved interviewing the experts that the research team selected depending on their experience in circular/sustainable economy.

In this regard, the analysed interviews cover an in-depth spectrum of expertise in the field of circular economy. The interviewees were selected from representative organisations at the national level in Romania. The interviewees’ experience comes from various backgrounds, from both the public and private sectors as well as the non-governmental sector. The respondents were selected to be active in different areas (public/private/NGO sectors) to cover more views on the topic.

The interview comprised two identification questions pertaining to the respondents’ experience and the field in which they engaged professionally, as well as eight open-ended questions. Of these, six addressed matters related to the circular economy and its adoption in Romania, with an indirect reference to the labour market, while the remaining two questions were directly focused on green jobs.

We interviewed experts from various organisations, such as private companies from environmental businesses, governmental actors, research organisations, and non-governmental activists, that have studied or worked in the sustainable economy field for at least 10 years. There were 20 interviews conducted from April to May 2024. The inclusion criteria for the respondents were the average duration of expertise, in years, and the field of expertise. The experts included in the study were selected based on their experience in conducting research in this field and their involvement in at least three studies or the management of at least two long-term projects in the sustainable economy. The interviews were prepared in advance, and each participant was informed about the purpose of the interview and the importance of providing detailed answers where necessary. We paid a special focus on covering a wide range of particularities concerning sustainability-related expertise from social and economic areas, related to the newest circular economy opportunities on the job market. The selected experts gave insightful information in their interviews about the present tendencies of the circular economy and marketplace in Romanian society.

In determining the number of interviews, we relied on research in the field, which indicates that a number between 12 and 25 interviews is sufficient to reach thematic saturation for a homogeneous sample [67,68]. In this regard, our study aligns with this recommended range, as it is based on 20 interviews. As the study investigated the contribution of the circular economy to sustainable economic growth and job creation in Romania, the interview was conducted in the national language (Romanian) and averaged 40 min in duration (10 min for explaining the context and purpose of the study, and 30 min for answering the questions). The interviews were conducted online, and participation was not incentivised. Therefore, the analysis reveals a comprehensive professional perspective on the topic of sustainable economic development through job creation.

The results were interpreted using qualitative thematic analysis, a method that is used to identify patterns and themes within the data [69,70]. We employ structured interviews as a data collection method, using questions from a predetermined thematic framework within the area of circular economy. Our method aims to show the interviewers’ different perspectives concerning the same theoretical framework, allowing them to investigate multiple facets of the research questions. Thus, qualitative thematic analysis is a valuable tool in navigating the complexities of sustainability and green economy challenges to gain insights and drive impactful change towards a more sustainable future.

The data collection analysis was made in two steps. The first step was sending self-administered interviews via e-mail. The second step consisted of receiving the interviews and transcribing individual answers to each research question applied into an Excel database. The data analysis process also included three steps. Firstly, we selected keywords and quotations for categorising data to identify recurring themes or patterns that could help to understand the collected data while navigating its underlying meaning and implications. Secondly, the coding process was followed by theming within the map of interview data. Thirdly, we explored how the data related to the research objectives and interpreted the findings to draw relevant conclusions related to the main objectives of our paper.

4. Results

The results of the research are presented in two main parts. The first part consists of the results of the systematic literature review, whose main objective is to support the interview guide and provide a framework for discussions with experts in the field of sustainable economy. The second part presents the results of interviews conducted with some of the most prominent representatives of the sustainable economy in Romania.

4.1. Results of the Bibliometric Analysis

To complete the information from the literature review regarding the recent studies in circular economy and the link to the job market issues in CEE countries, we conducted a systematic literature review in the Web of Science database, choosing the Boolean function of the platform. This part of the research allowed us to extend our primary conclusions regarding the focus in research and to structure the interview guide in line with the main trends and gaps in research regarding this field.

We structured our search into three main stages: the identification stage, the screening stage, and the results interpretation stage (Figure 1). In this regard, we analysed the research trend in the articles published in journals included in all editions of the Web of Science database, to see if there was a specific focus on researching the changes in the labour market determined by the shift from the linear economic model to the circular model. We delimited our search to the articles that investigated this research topic in the CEE region, selecting only the papers that included in the topic (title, abstract, and keywords) one term that indicated the location of the research, including CEE, Central and Eastern countries, Central Europe, Eastern Europe, Central and Eastern Europe and the related countries: Bulgaria, Croatia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovenia, Slovakia, and the Czech Republic, and also contained the term ”circular economy”. We selected only the papers published up to 2024 in English.

In total, 493 research articles met our selection criteria. Analysing the scientific production, we noticed a low interest in research that studied aspects related to the circular economy in CEE countries up to 2019. After this year, the number of published articles significantly increased, indicating the booming interest in this subject in line with the European Commission Directives and regulations (Figure 2). Also, the percentage of funded papers (58% of the articles) indicated that this research topic has been more influenced by the legislative framework than by the previous research.

To see the research interest regarding the circular economy in CEE, we created the map of the co-occurrence (Figure 3) using VosViewer software, a dedicated tool for systematic literature review. The investigation shows five clusters of the main items after their occurrence in the published papers. The blue cluster includes items related to waste management, and the red cluster comprises terms related to the business issues related to the adoption of the circular economy model. The yellow cluster groups items related to the agriculture industry, the purple cluster includes items related to consumer behaviour, and the green cluster includes keywords related to waste recovery. Analysing each cluster, we noticed that there is no item directly related to the labour market, or the issues generated by the requirements of green jobs. The five clusters incorporate items that have connections to the labour market, such as business models, technology, and competitiveness, but none of the keywords indicate issues related to the labour market, such as green jobs, labour, salary, etc. However, the five clusters illustrate the wide range of issues that the transition from the linear economy to the circular economy will represent for the labour market in CEE countries, since many items are related to innovation, waste management, recycling, bioeconomy, green economy, and waste water; all related to green jobs.

Even though the circular economy and its implication on the labour market represent a critical topic for EU countries, the related research agenda is underdeveloped in the CEE region. Little research has been conducted on what the real implications are for an employee when switching from a linear economic model to a circular model. The systematic literature review revealed the lack of research in the CEE region related to the connection between the circular economy and the labour market. In order to complete the knowledge in the field, we built an interview guide to cover the gaps identified through the bibliometric analysis. In this regard, out of ten questions, six were designed to refer indirectly to the impact of the circular economy on the labour market, and two were designed to refer directly to the challenges of the green jobs for Romania.

4.2. Results of the Interview Data Analysis

The completed interviews were followed by a qualitative content analysis, which consisted of categorisation of the obtained data by coding. We synthesised a series of main drivers (themes), completed by significant challenges for job creation (patterns) in the circular economy in Romania. Since the number of interviews was not very large, the interpretation of the results was conducted by manually coding the responses. In this regard, we used Microsoft Excel to count similar responses and highlight differences. The data obtained were summarized in a map of the interview data.

Given that the selected interviewees represented a balanced mix of experts from research, public, and private sectors, and that each interview was conducted in depth, we believe that the sample size is sufficient to capture diverse perspectives and identify recurring themes and challenges in a meaningful way. We selected a series of key subjects related to significant challenges for job creation in the circular economy in Romania. These subjects provided a structured framework for mapping the interviews, allowing us to systematically compare expert insights, highlight key areas of convergence and divergence, and ensure a comprehensive understanding of the factors shaping circular economy employment.

The results indicate that the circular economy is a fundamental pillar for building sustainable and equitable economic growth, as resulted from the interview data. This is directly related to some other interconnected aspects, such as sustainability, transition, stakeholders, national strategy, the NRRP (National Resilience and Recovery Plan), and Romanian national targets. Complementary to the circular economy is the theme of green jobs, with two disposable dimensions: training and qualifications and the new green managers.

The multifaceted role of the circular economy represents a cornerstone for achieving growth within the EU. It contributes to a society more resilient to climate change and economic challenges (R9), being resource saving, economically efficient, and environmentally protective (R17) while increasing the rational use of the resources by stimulating innovation and competitiveness, creating jobs, and reducing human-caused environmental impact (R12).

An essential element that was revealed in the results is linked to promoting sustainability in all areas, from environmental protection to fostering multiple perspectives of innovation through responsible behaviour. For example, one respondent stated that “the circular economy has an important role to play in promoting sustainable economic growth in EU Member States, contributing to the goals of sustainability [and] reducing environmental impacts. At the same time, the circular economy means technological, economic, and social innovation, generating new concepts to help develop the field” (R9). Complementary to innovation, recycling is an essential component that makes possible the transition from a linear economy to a circular economy, in that it has “its counterbalancing role for conservative development based on non-renewable energy use” (R16) and aims to reduce waste generation, where “the circular economy is an economic model that focuses on minimising resource consumption, reducing waste, and maximising the use of existing resources (R7)”. In reinforcing new tools for preserving biodiversity, ecosystems, and the creation of new production niches, environmental policies represent an asset for the creation of green jobs: “the circular economy contributes to using resources efficiently, stimulating innovation and competitiveness, creating jobs, and reducing environmental impacts” (R12). Furthermore, for R13, the CE brings significant opportunities for sustainable economic growth and improved quality of life, while for R11, in adopting and promoting the principles of the CE “we can build a more prosperous, sustainable society that delivers long-term benefits for the environment, the economy, and society as a whole”.

Romania’s current consumption transition is another theme that was emphasised in the interview data. The existing consumption model in Romania and in other CEE countries may produce significant barriers to the development of a circular economy. Consumption in Romania is linear—i.e., the product is used only once and then thrown away; there is no possibility of recycling in all cases, and there is a dependence on imports for both raw materials and final products (R9). Maintaining patterns from the culture of waste and a lack of awareness about sustainable consumption practices were identified as key obstacles: the model is based on resource wastage, a massive import of primary and secondary resources, and an intensive use of fossil fuels, as well as a massive storage of waste and garbage (R17). Moreover, the reuse and product lifespan extension practices could replace these waste habits; this pattern is often characterised by a focus on consumption of new products and a throwaway culture at the expense of reuse, repair, and recycling practices (R13).

Major barriers are displayed by inadequate legislation, which must be aligned with EU environmental regulations. In particular, the differentiated collection of waste and the protection of nature from the residues of human activities (R8), along with infrastructure consolidation recycling and waste management infrastructure may also be underdeveloped or insufficient to support a circular economy (R13), representing significant issues to be underpinned for a reliable transition. Also, education was one highlighted factor that was expected to bring behavioural change based on environmental responsibility. Respondent 9 stated that these obstacles will be overcome once a new generation of young people enter the market and receive a different kind of education in school, which is against waste, pro-recycling, with respect for the environment.

Decisionmakers play a crucial role in mitigating the adverse effects of waste and recycling management policies. Two significant aspects are linked within this process—regulations and public policies. The responsibilities of decision makers include setting standards, promoting sustainable practices, and taking appropriate measures to facilitate the transition to the green economy: they impose standards, promote sustainable practices, conduct awareness-raising campaigns, assess impacts, and adapt policies to make the green transition more effective, mitigating natural resistance to change (R6). They are also tasked with supervising the economic impact of the environmental policies, monitoring the macro and micro economic levels, and measuring the effects generated by the implemented specific policies (R9). R11 emphasised the importance of stakeholders in addressing access to adequate solutions, particularly in proper impact assessment, stakeholder consultation, the promotion of innovation and investment, and the continuous monitoring and adaptation of policies to these changing circumstances. Moreover, investing in an effective technological framework to ensure efficient waste management and increased recycling rates provides the necessary resources for adequate recycling and waste management infrastructure (R10). Along with raising community awareness, by promoting public information campaigns, environmental education should be introduced into the compulsory school curricula (R8). A step forward to generate further facilities is to boost research related to projects involving recycling, reuse, refurbishment, reconditioning, repair, and other components of the “9R strategy” (R15).

The creation and maintenance of green jobs in Romania face multiple barriers and skill gaps. As outlined in Figure 4, the green jobs theme requires a multifaceted approach related to the identified challenges, which can be categorised into three main aspects. The first aspect refers to economic constraints; barriers to creating and sustaining green jobs are primarily the lack of financial resources to invest in green technologies that create green jobs (R9). Respondent 14 pointed out the high upfront costs of investing in renewable energy or energy efficiency technologies that further generate a green marketplace. Moreover, the need for retraining and the lack of expertise and specialised knowledge (R11) represent expensive inputs that raise the final cost of production.

The second aspect has a technological and educational dimension. It refers to both perspectives; on the one hand, needs hinder the retraining of personnel for the use of new technologies. The creation of “green” jobs requires the re-engineering of production processes, the qualification of the necessary workforce, and the development of study programs adapted to the needs and principles of the circular economy (R1). On the other hand, there is a shortage of skilled workers in Romania, indicating a gap in the education system and professional training. Alack of qualifications in the workforce involved in production processes requires the development of study programs adapted to the needs and principles of the circular economy (high school, university, professional, and vocational education) (R5).

The third aspect discloses inconsistent policies and obsolete social patterns. Unstable and changing environmental policies and regulations due to insufficient involvement of politicians, inter-ministerial committees, civil society, and the media (R8) can be interrelated with resistance to change attitudes as well as individual conservatism when it comes to something new (R7). Also, the lack of occupational standards dedicated to the green economy in Romania (R2) presents a significant challenge in the development of national targeted education and training programs.

From the respondents’ general perspectives, companies need new types of managers, the so-called “green” managers, to navigate the transition to green practices. Existing managers can also adapt with proper training. The transition to a greener and more sustainable company may involve new types of managers, or the development of new skills and competencies in existing managers (R10).

Their specific skill set is one aspect of this theme: companies looking to adopt sustainable business practices and integrate sustainability into their culture and operations will need managers who are not just prepared but inspired to lead this transition and will bring new skills and perspectives to the organisation (R11). Some of the most representative competencies illustrated in the interview data encompass a vision for green technology implementation, openness to change, and a deep understanding of waste recycling and sustainable business practices. According to Respondent 8, visionary managers who focus on innovation and low-impact technologies represent the new profile characteristics. In contrast, Respondent 12 emphasised that skills in risk management, effective communication, and promoting a sustainable supply chain are essential.

Another key aspect of the theme is professional experience doubled by managerial expertise. Managers are usually double-professional, i.e., they are specialists in one field (engineer, builder) and they also have managerial training. In this case, they need to know the concepts of circular economy, including the technical aspects and also how to manage such a company efficiently (R9).

The national strategy theme represents a key driver that promotes a circular economy. The development and implementation process encompasses an alignment with European policies and programs and strict regulations on waste, along with financial incentives and funding sources. Some distinct measures have proven their efficiency, as Respondent 6 argued: implement strict regulations on waste of all kinds, as what is happening now in big chain stores (i.e., the recycling label) seems like a good step.

Financial incentives contribute as compensatory stimuli targeted at the population to raise awareness. The implementation of the circular economy can only be achieved with the support of the population, which can be attracted primarily through financial policies/incentives (R7). Moreover, mass education through media campaigns is a crucial factor in information and knowledge sharing. EU legislation needs to be implemented quickly at the national level, but there is also a need for intense publicity through media campaigns and the competence of the ministries and agencies involved, coupled with beneficial initiatives from the authorities (R17). For the benefit of diverse state and non-state entities, the dissemination of successful experiences is pointed out as relevant; namely, the collaboration and partnerships between different stakeholders, including the public sector, the private sector, non-governmental organisations, and local communities. These partnerships can contribute to the exchange of resources, knowledge, and best practices in the field of the circular economy (R14). Finally, investments in research and innovation, and a concerted coordination effort at the national level—with clear strategic objectives and measurable indicators—are landmarks for the success of adopting an environmental strategy. Investments in RDI lead to the establishment of such an area in the national economy, the awareness of those interested in the support offered by the authorities in this regard, regulation of the field, tax subsidies, and financial incentives for companies that have such activities (R9).

5. Discussions

Our research shows that while there is a rich literature on the challenges and opportunities of the circular economy in the EU, this is still an emerging topic in the Romanian context. The studied literature and the conducted interviews have highlighted that the circular economy emphasises sustainable production and consumption, reducing waste and extending product life cycles, hence creating new job opportunities in recycling, remanufacturing, repair services, and sustainable product design.

The interview map has shaped various inter-correlations between sustainability and the circular economy as follows. Firstly, it is obvious that sustainable development is intricately linked to the circular economy through effective decision making and the adoption of green jobs. Romania’s focus on experience and adaptability in decisionmakers, supported by robust public policies, could ensure a seamless transition to a circular economy, aligning national targets with sustainable growth and environmental stewardship. Secondly, it is of utmost importance to integrate many of the circular economy goals into Romania’s national strategy for long term development. Such an approach could benefit future generations, while maintaining the country’s focus on competitiveness, innovation, and sustainable development. The map underscores the importance of public education campaigns and financial incentives as pivotal drivers in enhancing the skill set and adaptability required for green managers, ultimately supporting sustainable practices such as recycling and regulatory compliance, which are fundamental to the circular economy.

Thirdly, Romania’s NRRP must play a crucial role in driving the circular economy by promoting green jobs and environmental investments, which are essential for achieving sustainability goals. By addressing barriers and skill gaps, the NRRP facilitates the transition from a linear to a circular economy, fostering innovation and effective waste management, thereby contributing significantly to sustainable development.

As a former communist country, Romania has some particularities that reflect on both the opportunities and challenges emerging from circular economy development. Hence, we will briefly discuss first the opportunities and secondly the challenges, especially in the field of job creation.

Romania, like many former communist countries, inherited an industrial base characterised by inefficiency and environmental degradation. The centrally planned economy under communism prioritised heavy industry, leading to outdated infrastructure and technologies that are not conducive to the principles of the circular economy. These industries often operate with high resource consumption and waste generation, making the transition to a more efficient and sustainable model challenging. Moreover, for many investors, in the first decades after the communist collapse, there was a pronounced lack of market adaptability. The shift from a centrally planned economy to a market-oriented one has been gradual and uneven. During the communist era, industries were not driven by market demands or efficiency but by state mandates. As a result, there has been a historical lag in adapting to market mechanisms that reward innovation, efficiency, and sustainability. This lack of market orientation can hinder the adoption of circular economy practices, which rely on market signals and incentives to drive resource efficiency and waste reduction. In recent years, Romania’s economic structure has struggled to adapt to rapid changes in the global market.

Lately, Romania has made noticeable strides in embracing green management practices and the expansion of green companies. However, the extent of this progress varies across different sectors and regions. These advancements can significantly benefit job creation by generating new opportunities in green technologies, environmental management, and sustainable practices. Additionally, as industries adapt to greener practices, they contribute to a more sustainable future by reducing environmental impact and fostering long-term economic resilience.

However, a more rapid transition to a circular economy requires flexibility and innovation, areas where Romanian industries may lack sufficient experience and capability. The skills gap, particularly in green technologies and sustainable practices, remains a significant barrier. There is a need for extensive retraining and upskilling of the workforce to meet the demands of a circular economy. However, despite these significant hurdles, a strong regulatory framework, combined with EU funding opportunities, may prove efficient in conquering the Romanian investors’ reluctance while boosting circularity in many economic sectors. To provide a better future for the next generations, once the framework for circular economy practices is adopted, national implementation must be more consistent. For instance, public education campaigns are essential to change consumption patterns and promote sustainable practices among citizens and businesses. Such campaigns are essential, since overcoming entrenched habits and mindsets rooted in the past economic system requires substantial effort and time.

For boosting job creation under the circular economy imperatives, we have identified three main drivers (based on the conducted interviews). Our first driver relates to EU funding, since as a Member State, Romania can fully benefit from EU funding and technical assistance aimed at promoting sustainable practices and green technologies. Our second identified driver refers to the financial incentives enforced through an adequate legal framework; stakeholders must prioritise and subsidise all the circular economy goals through national strategies, even more so since such sustainable approaches are often confronted with market failures or prohibitive application costs. Lastly, our third driver refers to innovation and competitiveness that should act as a key driver, since embracing the circular economy approach in many sectors (agriculture, tourism, creative industries) can foster innovation, improve resource efficiency, and enhance Romania’s competitiveness in the global market.

Our research has also identified important barriers for accelerating job creation through the development of the circular economy in Romania. The first obstacle is a lack of public awareness. As it is commonly known, shifting from traditional, linear economic models to circular models requires significant changes in business practices, consumer behaviour, and societal attitudes. Moreover, since in Romania the public acceptance of circular economy principles is still low, we believe that changing consumer behaviour and promoting sustainable consumption requires extensive education and awareness campaigns. Another hurdle refers to the infrastructure deficits. Despite some progress achieved in the latest years (through a limited number of companies and some start-ups), Romania’s recycling infrastructure is still underdeveloped, making it difficult to implement more effective circular economy practices. Lastly, there is a high cost of recycling. In many sectors, the initial investment in recycling infrastructure and technology is high. For Romania this can act as a significant barrier since the country has limited financial resources.

The literature review and completed interviews (opinion polls of Romanian representative scientific researchers) show the importance of efficient human resource management for circular economy development. Green human resource management skills are typically complex and require intensive circular economy training or superior technical competencies. Therefore, green managers are looking to develop sustainable businesses based on a circular economy, while achieving economic efficiency and environmental objectives at the same time.

A circular economy functions in an ecosystem that provides sustainable economic growth based on production factors such as natural resources, land, labour, and capital. For the Romanian economy, it is essential to develop new startups to provide sustainability and green job creation simultaneously. In this sense, we have identified several good practical examples in the Impact Hub Bucharest, based on the Romanian Green Startups Overview, as follows:

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Kolecto is an accessible digital solution that simplifies the process of selecting, recording, and reporting recyclables, connecting key players in the collection–recycling chain. Initially, Kolecto aims to facilitate the manual collection process of recyclable packaging by economic operators as part of the Deposit Return System.

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Horeca Ordersis an ordering platform designed for the hospitality industry, facilitating collaboration between Horeca specialists, owners of public food establishments, and sales representatives. Its purpose is to streamline operations within the industry and optimise the processes of placing, receiving, and managing orders to reduce food waste.

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R3d.eco is a startup focused on industrial production technology development using recycled plastic materials, contributing to promoting the circular economy.

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CarbonCel is a Romanian green startup that implements practices for carbon farming, which brings technology that helps farmers optimise costs, products, and resources, enabling them to embark on carbon projects that generate additional income.

6. Conclusions

The concept of circular economy has gained significant attention in recent years as a potential solution for addressing economic and environmental challenges. By adopting circular economy principles, it can promote sustainable development and preserve natural resources while creating new economic opportunities. Implementing these principles will enable the efficient use of resources through practices such as recycling, reusing, and reducing waste. This approach can help minimise waste flows, maximise reuse, and increase recyclable materials.

Through existing legislation, the European Union has promoted the rational use of existing resources and sustainable waste management by encouraging a conscious approach to environmental protection in economic activities. In the EU, the circular economy has gained momentum due to several factors, such as the awareness of environmental issues by the population, economic opportunities, and technological advances.

From the labour market perspective, the transition to a circular economy can bring important challenges and changes, such as the creation, replacement, disappearance, and redefinition of certain jobs. The creation of green jobs in the labour market aims to preserve or restore environmental quality through employment.

For Romania, the circular economy provides very concrete opportunities to converge with other European countries in terms of green energy, green jobs, and green transport. Our first finding shows that while implementing the circular economy principles in Romania is challenging due to legal, cultural, and financial barriers, leveraging the financial support from the EU can create significant job opportunities and drive sustainable economic growth.

Our second finding shows that increased research and focus on practical implementation strategies are needed to fully realise the potential of the circular economy in Romania.

In a nutshell, we believe that much of the existing literature focuses on policy development at the EU level rather than practical implementation in specific countries like Romania. However, such a targeted approach is needed, especially since countries with a history of centralised economies like Romania face unique challenges in transitioning to the circular economy. The legacy of industrial practices, underdeveloped infrastructure, and regulatory frameworks pose significant hurdles, but there are also opportunities for leapfrogging (for instance by bypassing traditional waste management practices and directly adopting advanced recycling and waste-to-energy technologies) to modern, sustainable practices if appropriate policies, investments, and education initiatives are implemented.

It is our belief that the achievement of a circular economy in Romania must remain a key development goal for future generations. However, consumer behaviour in Romania may still be influenced by the economic hardships of the past, leading to a preference for low-cost, disposable products over sustainable alternatives. Considering this, our research has proven that shifting consumer preferences towards sustainable products and services is essential for a circular economy and requires both education and economic incentives.

The limitations of the current research are associated with the relatively low number of interviews conducted, especially those with respondents from the government’s active policy makers, which is an obstacle to obtaining more accurate results. We can also consider the low number of studies carried out so far in Central and Eastern Europe on this topic as a limitation, since this has created difficulties in terms of conducting a more consistent literature review.

For future research, the authors aim to identify a larger group of respondents and to develop the current research, namely, to elaborate a comparative analysis with another former communist country.