Innovative Human Resource Management Strategies for Circular Economy Transition: Comparative Insights from Portugal and Sweden

The transition to a Circular Economy (CE) is a fundamental response to contemporary environmental and economic challenges. Sustainable human resource management (SHRM) is pivotal in equipping the workforce with green skills, reskilling strategies, and fostering organisational sustainability. This study undertakes a comparative analysis of Portugal and Sweden to examine the influence of SHRM strategies on CE adoption. Utilising Eurostat data and employing statistical analyses, the study assesses workforce training, circular material use, and green employment growth in both countries. The findings reveal that Sweden exhibits considerably higher engagement in workforce training (32.26% vs. 10.87% in Portugal), more prevalent circular material use (7.73% vs. 2.31%), and more consistent green job growth (higher R2 in regression models). These findings underscore the pivotal role of well-designed public policies and SHRM strategies in fostering CE adoption, underscoring their alignment with the Sustainable Development Goals (SDGs), particularly SDGs 8 and 12. The insights derived from this study are of significance for policymakers and organisations seeking to enhance workforce sustainability and circular business models.