<p>The circular economy (CE) transition's social implications, particularly for labour markets, remain insufficiently understood. This article examines how the CE transition impacts not just employment levels, but also the quality, distribution, and desirability of work. We analyse three future CE policy scenarios: servitisation, tax shift, and resource efficiency, through a novel mixed-method approach combining results from a computable general equilibrium (CGE) model with microdata from the European Labour Force Survey and the European Working Conditions Survey. While all scenarios achieve similar environmental ambitions, labour market outcomes diverge significantly. Between 12–65% of workers face occupational changes depending on the scenario chosen, though net employment effects remain modest (-0.66% to + 0.67%). All scenarios disproportionately create higher-skilled service jobs while reducing medium-skilled positions, exacerbating job polarisation. Job quality shows mixed results: physical working conditions and career prospects generally improve, but work intensity and social environment often deteriorate. The servitisation scenario shows the most positive job quality evolution but requires the greatest workforce adjustment. The tax shift minimises disruption but offers limited structural transformation. The resource efficiency scenario presents the most complex reskilling challenges. These findings demonstrate that CE employment effects are not predetermined but shaped by policy design. Without deliberate intervention, CE transitions risk creating dualised labour markets where benefits concentrate among higher-educated workers. Ensuring equitable transitions requires embedding just transition principles in CE policy, including targeted reskilling programmes, adaptive job design, and social protection measures that address both educational barriers and job quality dimensions.</p>