Closing the loop on skills shortages
The skills gaps and challenges for a circular economy transition.
The benefits of a circular economy are well documented, and the urgency of delivery is increasingly clear. From enabling sustainable growth and building resource security, to job creation and emissions reductions, circularity unlocks economic, social and environmental value. Importantly, it also provides the UK with a powerful opportunity to build resilience in an increasingly uncertain global environment.
However, the UK’s momentum is at risk due to significant and growing skills gaps, particularly across chemical and materials science and engineering.
In response to this, the Institute of Materials, Minerals & Mining (IOM3), the Institution of Chemical Engineers (IChemE) and the Royal Society of Chemistry (RSC) partnered to investigate the circular economy skills landscape. We have identified present and emerging gaps, and set out recommendations to drive strategic, coordinated action to build and maintain a sustainable, future-ready workforce.
With support from the UK Department for Business and Trade, we convened two online workshops involving stakeholders from across sectors, including chemicals, materials, engineering, the Foundation Industries, energy, manufacturing, construction and defence.
Participants included representatives from industry, education and training providers, professional bodies, as well as officials from the UK Departments for Business and Trade, Environment, Food & Rural Affairs (Defra), and Energy Security and Net Zero.
The workshops examined five thematic areas – skills horizons, educational pathways, sourcing of circular economy skills, avenues for reskilling and policy priorities.
In addition, a survey was distributed across the three partners’ networks and communities, providing further quantitative and qualitative insight into workforce challenges and opportunities.
The integrated findings from these engagements inform a new report on Jobs and skills for a circular economy: a cross-sector perspective from the chemical and materials science and engineering communities. It reveals several cross-cutting challenges that collectively threaten the UK’s ability to build and sustain the workforce necessary to realise the benefits of a circular economy.
Upon publication, Defra said, ‘This government is committed to building a circular economy where we keep resources in use for longer and reduce waste. This transition will accelerate our path to net-zero, drive vital investment in green infrastructure and jobs, boost our economy and help nature flourish.
‘Getting our workforce equipped with the right skills will be absolutely critical to making this transformation a success’.
The need to evolve
Stakeholders unanimously agreed that roles in chemical and materials science and engineering are fundamental to a successful circular economy.
They inform the sustainable design of products for longevity, repairability and recyclability; the engineering of industrial processes that recover and reuse valuable resources; the modelling of material flows across supply chains; and the development of innovative approaches to remanufacturing, substitution and waste valorisation.
They also provide the technical foundations for addressing security of supply for critical materials, managing end-of-life treatment of complex products, and reducing the carbon intensity of material production.
To enable a more circular economy, it is vital that industry, education and training providers, regulators and policymakers can access professionals equipped with the right expertise, supported by appropriate education and training.
However, the report highlights growing and changing skills gaps, and that the current talent supply is struggling to meet this need. This is forecast to become an even greater challenge as the demand and competition for chemical and materials science and engineering skills increases.
A robust and resilient workforce with a strong skills pipeline, as well as clear and accessible education and training pathways into the circular economy, are of strategic importance. However, the current system is not adequately aligned to meet this growing demand. Reasons cited include lack of training opportunities or courses, and university department or course closures.
A recurring theme is the need for a mix of academic, vocational and alternative educational routes. The report calls for better recognition of vocational and alternative pathways, including degree apprenticeships, reskilling and vocational training. Despite being vital for many roles, these pathways remain undervalued and underutilised.
Stakeholders stressed the importance of embedding circular economy principles into all education pathways and the value of providing industrial context to prepare and excite learners. Industrial experience was seen as essential, with collaboration between industry and academia key to preparing graduates effectively.
Many roles are already experiencing severe shortages, including materials engineering, chemical engineering, regulatory compliance, environmental engineering, process engineering, metallurgy, ecotoxicology and R&D.
The findings of the report also reveal that, while core skills will remain important, their applications will change over time. And there will be a greater emphasis on overarching skills, such as critical thinking, systems thinking, inter- and cross-disciplinary skills and communication skills. Lifecycle analysis, policy engagement and supply chain understanding are also highlighted as increasingly important.
Sourcing talent
Additionally, recruitment is challenging at all levels – locally, nationally and internationally. The ageing workforce adds urgency, with many experienced professionals reaching retirement age without the specialist skills or knowledge being passed on.
The barriers identified include negative perceptions of industry and the areas it can be located in, with challenges such as limited public transport options and relocation. Competition between sectors can exacerbate the challenges and new and emerging roles can face a limited and undeveloped talent pool. Place branding and local engagement will be crucial tools to help address this issue.
International recruitment is reportedly hindered by visa regulations, post-Brexit constraints, and the high cost and complexity of relocation, with particular challenges for small- and medium-sized enterprises (SMEs).
Industrial placements, and on-the-job and in-post training schemes are cited as effective mechanisms for strengthening the skills pipeline. However, many organisations – particularly SMEs – lack sufficient resource to implement or scale such programmes without additional support.
Reskilling and transferability
Reskilling is crucial to meet workforce demands for a circular economy, especially to fill positions quickly and as new jobs emerge and other industries decline.
Stakeholders emphasised that many skills from sectors such as oil and gas are transferable. However, a number of barriers hinder effective reskilling, including low awareness among employers and prospective workers, pay disparities between sectors, and the cost and accessibility of continued professional development and training.
Modular and affordable training, alongside national frameworks for recognising transferable skills, are needed.
This requires coordinated efforts across government, industry, and education and training providers to ensure training is relevant, accessible and well-funded.
Policy priorities
Stakeholders emphasised that there is an urgent need for government to recognise chemical and materials science and engineering as strategically important to national economic, environmental and security objectives, and to support skills development accordingly.
Policy alignment, long-term stability and robust targets are needed to foster confidence and investment. Education should embed circular economy principles meaningfully. Improving perceptions and awareness of career opportunities, removing barriers to vocational education, and supporting SMEs are key priorities. A well-resourced regulatory environment, streamlined permitting and public mapping of industry skills needs will be vital to enabling innovation and mobility across sectors.
Cross-cutting conclusions
All actors, including industry, education and training providers, regulators, and policymakers, have a role to play in delivering a future-facing, inclusive and responsive skills system.
The report draws the following eight overarching conclusions:
- An enabling policy and regulatory environment is integral to a circular economy.
- Strategic, data-driven skills mapping and planning are urgently required to address current and future jobs and skills gaps.
- Skills needs and applications are evolving, and these must be considered to unlock a future-proofed workforce.
- Delivering circular economy priorities depends on modernised curricula and a combination of educational pathways.
- Financial pressures on chemical and materials science and engineering university departments pose significant risks.
- Recruitment locally, nationally and internationally is challenging.
- Addressing negative perceptions and lack of awareness about circular economy opportunities will help attract more talent.
- Effective collaboration and partnerships will be crucial to meet the skills and workforce needs of the circular economy.
To address the findings, the report calls for urgent, strategic, coordinated action across government, industry, education and training providers, and professional bodies to build and maintain a resilient, future-ready workforce.
