Induced Jobs
At a Glance
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Induced jobs are created when employees in the extractive industry value chain use their earnings to purchase local goods and services. While it is difficult for either governments or companies to directly influence and promote induced employment, broad steps can be taken to ensure more money is spent locally.
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For example, governments can work to improve the overall economic environment so businesses that offer goods and services consumed by employees within the value chain can operate competitively.
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Social and physical infrastructure plays a key role in affecting how employees in the extractive industry value chain consume goods and services. It can also provide incentives for employees to settle in areas close to project sites and increase local demand for commercial goods and services.
Case Studies
Key Resources
- African Mining, Gender, and Local Employment (Andreas Kotsadam, Anja Tolonen)
- Linkages to the Resource Sector: The Role of Companies, Government, and International Development Cooperation (Columbia Center for Sustainable Investment, Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ))
Topic Briefing
Unlike direct and indirect employment, induced employment is difficult to influence and promote directly, whether for governments or extractive companies. But, since induced jobs are created when employees in the extractive industry value chain use their earnings to purchase local goods and services, broad steps can be taken to help ensure that more money is spent locally.