The machine may need cleaning or adjusting. Try another brand of recycled paper, just as you'd try another brand of virgin paper. The little fibers in recycled paper create too much dust in machines. Excessive dust comes not from recycled fibers but from inadequate production processes or incomplete vacuuming of cut paper sides. Buy high quality paper to avoid such problems.
Recycling is a system necessary for environmental sustainability.
Whether paper is made from trees, crops, agricultural residues, or other fibers, it needs a system to recycle it after eventual disposal. The fact that recycled paper today consists almost exclusively of tree fibers reflects only the current state of our paper supply. It's better to burn paper for energy than to recycle it. The fibers in fine paper can be recycled up to a dozen times before becoming too short for papermaking, saving resources, water and energy, and reducing pollution each one of those times. The impact and value of these repeated savings are much greater than the minimal amount of energy produced when the paper is burned instead.