Workforce Readiness for the Circular Economy: Examining the Impact of Sustainability Training and Environmental Awareness

ABSTRACT This study examines how sustainability‐focused training is associated with workforce readiness for sustainable manufacturing and the adoption of circular economy practices in the manufacturing sector of the United Arab Emirates (UAE). Drawing on Human Capital Theory and the Theory of Planned Behaviour, the study develops and tests a conceptual model in which environmental awareness mediates the relationship between sustainability‐focused training and two key outcomes: workforce readiness and circular economy adoption. The study also examines whether human‐centric learning design strengthens the relationship between training and environmental awareness. Data were collected from 247 manufacturing employees using a time‐lagged design, with circular economy adoption additionally assessed through manager ratings. Structural equation modelling was used to test the proposed relationships. The results show that sustainability‐focused training is positively associated with workforce readiness and circular economy adoption. Environmental awareness serves as a significant mediating mechanism in both relationships, while human‐centric learning design strengthens the positive association between training and awareness. These findings contribute to the literature by clarifying how sustainability training is linked to sustainability‐oriented outcomes and by providing evidence from the underexplored context of the UAE manufacturing sector. The study also offers practical insights for designing more effective sustainability training initiatives to support the circular economy transition.