This study examines the impact of circular economy practices on Sustainable Development Goal 8 (SDG 8: Decent Work and Economic Growth) in European Union member countries. Using Eurostat data from 2010–2024, the analysis evaluates the relationship between circular economy indicators such as resource efficiency, trade cycle, material imports, and the rate of circular material use, and the labor market and economic well-being. To consolidate the multifaceted nature of SDG 8 under a single performance indicator, a composite SDG 8 index was constructed using Principal Component Analysis (PCA), and the relationships were tested using a panel data approach. The F and LR tests applied in the model selection process revealed the presence of unit and time effects, while the Robust Hausman test showed that the fixed-effects model was appropriate. Since heteroskedasticity, autocorrelation, and cross-sectional dependence were detected as a result of diagnostic tests, estimations were performed using Driscoll–Kraay robust standard errors. The findings showed that resource efficiency and the rate of circular material use had a positive and statistically significant effect on the SDG 8 index. The trade cycle variable was also found to be positive and significant, while the effect of the material import variable was not statistically significant. The results show that circular economy practices not only support environmental sustainability but also have positive effects on decent work and economic growth. In particular, increasing resource efficiency and integrating recycled materials more into production processes are important policy tools that can support labor market performance and well-being. These findings indicate that circular economy strategies should be addressed in an integrated manner with economic and social policies to achieve sustainable development goals.
Atabay et al. (Thu,) studied this question.