Gemma Durán Romero, Ana M. López Garcı́a, Dionisio Ramírez, J. A. Larrea Peña
The transition to a Circular Economy (CE) aims to decouple economic growth from resource consumption by promoting resource efficiency, sustainable industries, and regional economic resilience. CE offers environmental benefits, such as reduced resource demand and lower greenhouse gas emissions (GHG) but also introduces complex economic effects that require further research. This article examines the socioeconomic impacts of the CE, focusing on the European Union (EU), where member states have developed specific strategies to address their economic and environmental challenges, exploring employment dynamics and resource optimisation. It explores employment dynamics and resource optimization across sectors. It combines a comprehensive review of existing literature with an empirical analysis to contrast theoretical insights with current data on investment and employment trends in CE sectors. The findings highlight opportunities, such as job creation in recycling, repair, and service-based industries, as well as challenges, including job losses in manufacturing and mining. Germany and France are confirmed as leaders, with steady investments in EC and employment growth. Meanwhile, southern European countries are being addressed, underscoring the need for urgent and tailored strategies and policies that align macroeconomic goals with the principles of CE. This dual approach provides actionable insights for fostering sustainable economic growth, environmental resilience, and inclusive transitions within the EU and beyond. Correction note: The author affiliations in this article were corrected on 17 December 2025. The scholarly content of the article remains unchanged.