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- Jobs from Extractives
- Assessing Employment Potential and Skills Gaps
- Assessing Induced Jobs Opportunities
Assessing Induced Jobs Opportunities
At a Glance
- Extractive projects often “induce” local employment, as employees in the extractive industry value chain drive up demand for local goods and services.
- The magnitude of this induced employment fluctuates as the number of value-chain employees expands and contracts over the course of a project’s life cycle.
- While it cannot be directly influenced, induced employment can be encouraged by fostering a vibrant local economy.
- When considering the effects of the extractive industry on domestic labor markets, it is helpful to take induced employment into account, in addition to those jobs that an extractive project creates directly (via hiring) and indirectly (via local procurement).
Case Studies
- Enhancing Mining's Contribution to the Zambian Economy and Society (Chamber of Mines of Zambia, International Council on Mining and Metals)
- Impacts and Development in Local Economies Based on Mining: The Case of the Chilean II Region (Patricio Aroca)
- The Local Employment Impacts of Mining: An Econometric Analysis of Job Multipliers in Northern Sweden (Thomas Ejdemo, Thomas Moritz, Patrik Soderholm, Linda Warell)
Key Resources
- The Local Employment Impacts of Mining: An Econometric Analysis of Job Multipliers in Northern Sweden (Thomas Ejdemo, Thomas Moritz, Patrik Soderholm, Linda Warell)
- Enhancing Mining's Contribution to the Zambian Economy and Society (Chamber of Mines of Zambia, International Council on Mining and Metals)
- Impacts and Development in Local Economies Based on Mining: The Case of the Chilean II Region (Patricio Aroca)
Topic Briefing
In addition to the jobs that it creates directly, by hiring employees, or indirectly, by procuring goods and services locally, an extractive project also induces employment. It does this via so-called consumption linkages, as extractive companies’ direct employees, and the employees of the local suppliers they hire, spend their wages in the local market (for example, in shops, or for transport and other needed services).