Governments often consider the potential impacts of different options on employment in setting policy or examining projects in the energy sector. The employment impacts can be measured in several ways, making simple comparisons between studies on employment misleading. This paper describes the various measures of employment that are widely used and discusses the definitions and methodologies used. Four classes of study, answering different questions about employment creation, are considered:
1. Estimating the incremental employment created by a specific project
2. Evaluating the incremental employment effects of different forms of a stimulus program
in which the energy sector is one possible recipient of government spending
3. Evaluating the total employment supported by an energy sub-sector at a moment in time
4. Comparing the employment creation of alternative energy technologies to achieve the
Same goal, whether it be the amount of power delivered or million dollars of expenditure. Employment created can be measured as direct (those employed by the project itself), indirect (those employed in supplying the inputs to the project), and induced (those employed to provide goods and services to meet consumption demands of additional directly and indirectly employed workers). A further distinction is made between employment for construction, installation and manufacture (CIM), and employment for operation and maintenance (O&M). When there is interest in the effects on incomes as well as employment, changes in different categories of employment can be multiplied by estimates of wage rates to obtain such information.
Jobs Created In Energy Sector