Direct, indirect, and induced employment
Investments into an industry or project can produce temporary and long-term employment. The resulting jobs are typically categorized as being one of three types. A direct job is employment created to fulfill the demand for a product or service.[1] An indirect job is a job that exists to produce the goods and services needed by the workers with direct jobs.[1][2] Indirect employment includes the things need direct on the job as well as jobs produced because of the worker's needs (e.g., uniforms). Employment created by the additional personal spending (e.g., eating at a restaurant) by both direct and indirect workers is classified as an induced job.
Projects may produce temporary and long-term jobs.
Examples
Project | Direct jobs | Indirect jobs | Induced jobs |
---|---|---|---|
Use wind turbines[1]
|
Employees manufacturing wind turbines |
|
|
Build a water treatment facility[2]
|
|
| |
Tourism[4] | Service job selling tickets to a park
|
| |
Retrofitting buildings to be energy efficient[5] | Construction job to install new heating system |
|
Efficiency of job production
Investments in some projects or industries are more efficient at producing direct and indirect jobs. For example, investing US$1,000,000 in the petroleum industry produces fewer direct and indirect jobs than investing the same amount of money in renewable energy or energy efficiency.[6]
A
References
- ^ ISBN 978-0-8213-9666-7.
- ^ ISBN 978-92-3-100146-8.
- ^ ISSN 0882-7729. Retrieved 2022-11-14.
- ^ Lake States Regional Forest Resources Assessment: Technical Papers. U.S. Department of Agriculture, Forest Service, North Central Forest Experiment Station. 1997. p. 184.
- ISBN 978-1-000-25977-3.
- ISBN 978-1-000-25967-4.
- ^ ISBN 978-92-1-004158-4.
In 2017, SEZs provided about 166,000 direct jobs and an estimated 250,000 indirect ones, the majority of which were still low-skilled workers (blue collar, 71 per cent), even though the share of technical workers has steadily grown since 2012.