Are there jobs in recycling
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1 Are there jobs in recycling The Formal and Informal Sector Status Quo and Opportunities Dr Linda Godfrey 8 July 2014
2 YES! There are
3 ARE THERE JOBS IN RECYCLING? Raises 3 important questions - Where in the waste value chain should we be creating jobs? - What types of jobs should we be creating? - Is there a trade-off between jobs and technology?
4 WHERE IN THE WASTE VALUE CHAIN? The recycling sector in South Africa is defined as - Any person or organization involved in a process where waste is reclaimed for further use, which process involves the separation of waste from a waste stream for further use and the processing of the separated material as a product or raw material The recycling sector thus includes the collectors/sorters of recyclable materials (both formal and informal) as well as the processors thereof.
5 IMMEDIATE OPPORTUNITIES FOR JOBS Opportunities for immediate job creation in the waste sector have been identified in - Open-spaces cleaning (e.g. clearing of illegal dumping sites, street cleaning and sweeping, litter picking) - Waste collection - Sorting of recyclables Labour intensive activities that require low skills
6 WHERE IN THE WASTE VALUE CHAIN? There are opportunities for jobs across the value chain
7 WHAT TYPES OF JOBS? Increasing skill levels
8 WHAT TYPES OF JOBS? While 29.8% of South African s of employable age are currently unemployed (Census, 2011) ~60% of the unemployed have less than a high school (Grade 12) qualification (StatsSA, 2012) South Africa sits with high numbers of uneducated, unskilled, unemployed citizens
9 WHAT TYPES OF JOBS? South Africa s employment challenge is therefore two-fold: - Create large numbers of low-skill jobs for the currently unemployed - Simultaneously grow waste skills in sector to Stimulate medium- to high-skill job creation Support growth in downstream recycling and manufacturing activities
10 WHAT TYPES OF JOBS? The majority of people currently employed in the formal SA recycling sector can be considered unskilled (70.9%) Only 10.8% can be considered technically skilled (for the recycling sector)
11 WHAT TYPES OF JOBS? All jobs along the value chain are necessary and important But there s now a need to strengthen downstream jobs Increasing value add, increasing skill levels
12 WHAT TYPES OF JOBS? Achieving Government targets for job creation in the waste sector (including the recycling sector) will require - Growing the private, formal waste sector (new opportunities) - Integrating the informal sector into the waste economy The informal sector is critical to our discussions on recycling Not necessarily jobs, but income-creating opportunities
13 WHAT TYPES OF JOBS? The SA formal waste sector is estimated to employ 29,833 persons (as at 2012) Informal sector estimated to provide an income for 2-3 times this DEA estimated total waste sector (formal and informal to be 113,505 people (as at 2009) 74% of these likely informal in recycling (DEA, 2009)
14 WHAT TYPES OF JOBS? Informal sector remains key to increasing recycling rates in South Africa From BMI, 2013
15 WHAT TYPES OF JOBS? An important question for the recycling sector If Government is going to push for Extended Producer Responsibility (EPR) systems in SA How will we effectively integrate the informal sector in these schemes to achieve recycling targets? EPR
16 DIRECT, INDIRECT AND INDUCED JOBS Not only talking about direct jobs in recycling Indirect jobs Induced jobs
17 DIRECT, INDIRECT AND INDUCED JOBS There have been no comprehensive studies undertaken to quantify the direct, indirect and induced jobs created by a recycling economy in South Africa Indirect jobs are those created in companies that supply the recycling sector; Induced jobs are those created when workers in the direct and indirect jobs spend their earnings on goods and services.
18 DIRECT, INDIRECT AND INDUCED JOBS Illinois (USA) create - 40,000 direct jobs in recycling - 34,000 jobs are indirectly tied to recycling - 37,500 jobs are induced by the industry - For every 1 job in recycling create 1.8 jobs in the economy UK (increasing MSW recycling to 70%) create - 29,400 new direct jobs in recycling, - 14,700 indirect jobs in supply chains and - 7,300 induced jobs - For every 1 job in recycling create 0.75 jobs in the economy
19 DIRECT, INDIRECT AND INDUCED JOBS Connecticut (USA) create - 2,710 direct jobs in recycling jobs are indirectly tied to recycling - 1,325 jobs are induced by the industry - For every 1 job in recycling create 0.77 jobs in the economy USA create - 1.1m direct jobs in recycling - 1.4m indirect jobs in supply chains and - 1.5m induced jobs - For every 1 job in recycling create 2.6 jobs in the economy
20 DIRECT, INDIRECT AND INDUCED JOBS Texas (USA) (?) - Recycling sector 5,186 direct jobs in recycling 14,831 indirect and induced jobs For every 1 job in recycling create 2.9 jobs in the economy - Downstream manufacturing sector using recovered materials 744 direct jobs in manufacturing 1,935 indirect and induced jobs in manufacturing For every 1 job in manufacturing create 2.6 jobs in the economy
21 DIRECT, INDIRECT AND INDUCED JOBS Country / State Illinois (USA) UK (new jobs) Connecticut (USA) Texas (USA) Recycling Direct Indirect / Induced Downstream manufacturing Multiplier Direct Indirect / Induced Multiplier 40,000 71,500 X ,400 22,000 X ,710 2,080 X ,816 14,831 X ,935 X2.6 USA 1.1m 2.9m X
22 DIRECT, INDIRECT AND INDUCED JOBS Increasing recycling activities creates not only direct jobs Creates indirect and induced jobs x multiplier - Economy and country specific Also creates downstream jobs in the manufacturing sector - USA example for every 1 job in recycling creates 0.5 jobs (direct, indirect and induced) in downstream manufacturing CSIR
23 DIRECT, INDIRECT AND INDUCED JOBS Can South Africa create comparatively more jobs (both direct and indirect/ induced) given Labour intensive opportunities - Lower minimum wages - High demand for jobs - Supportive policy environment
24 TRADE-OFF BETWEEN JOBS AND TECHNOLOGY Relatively lower wages in South Africa creates opportunities for labour intensive recycling But wages are an increasing component of a recyclers business Growing impact of - Unions on recycling businesses - Electricity prices Plastics Recycling Survey, 2012 CSIR
25 TRADE-OFF BETWEEN JOBS AND TECHNOLOGY Understanding where in the business technology adds value Where will technologies increase performance? (increase throughput, improve efficiency, reduce time or costs) cost:benefit Move labour to where it will have the maximum impact on performance
26 CONCLUSIONS Yes, there is opportunity to create jobs (and more jobs) in recycling These may be formal jobs and informal income-earning opportunities There are opportunities for job creation all along the value chain How do we integrate the informal sector into the recycling economy to achieve growth in income earning opportunities? CSIR
27 CONCLUSIONS How do we up-skill to create not only early-stage jobs (collection, separation) but also down-stream jobs (dismantling, reprocessing, manufacturing)? It is not labour intensive versus technologies (co-exist) Where will labour-intensive approaches provide the maximum value recovery from waste? CSIR
28 CONCLUSIONS Reliable data on jobs in recycling is needed Thorough study to quantify jobs in the SA recycling sector - Across product streams - Including direct, indirect and induced - Including downstream manufacturing CSIR
29 Thank you Tel: +27 (0) Web:
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