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How many jobs does one new job create?

March 18, 2019 / By Barbara Weltman

There’s an employment multiplier, which is the ripple effect of the creation or destruction of a job (i.e., impact on suppliers and jobs supported by the income from direct jobs and supplier jobs). According to the Economic Policy Institute (see Table 1), the answer depends on the industry. For example, it found that one new job in durable manufacturing leads to 7.4 new jobs; one construction job leads to 2.3 new jobs and one job added in the retail trade leads to 1.2 new jobs.

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