sub-contracted. These jobs would include some supply 

 vessel crews and other transportation functions, some 

 welding services, catering, contract supply and 

 inspection services, equipment supply, metal and repair. 

 Indirect employment would also include major suppliers 

 to petroleum field operations, e.g., machinery, paint, 

 gaskets and seals, and electrical apparatus, whose 

 products are used by other industries as well. 



Current OCS facility studies usually include estimates of indirect 

 employment. Indirect employment is derived from estimates of direct 

 employment by applying a ratio based on other experience in the same 

 industry or experience in the same region. For example, a 5:1 ratio means 

 one indirect job is estimated for every five direct ones. 



State, regional, or local planning officials can often provide back- 

 ground data and analyses that are useful in evaluating the particular ratio 

 chosen. Also, state agencies responsible for coordinating economic 

 development can often provide ratios based on the state's experience; these 

 may be available as statewide averages, regional averages, or for specific 

 industrial sectors. 



A number of factors affect the amount of indirect employment in 

 specific cases. Those factors include the scale of the OCS operation, the 

 presence of established support services in the study region, and the 

 availability of such services in other areas nearby. Example 3 illustrates 

 the consideration of several factors in the October 1975 study, Mid Atlantic 

 Regional Study: An Assessment of the Onshore Effects of Offshore Oil and 

 Gas Development [9]. 



2.3.3 Induced Employment 1 



Induced employment is defined as [5]: 



...generated by the initial and subsequent rounds of 

 OCS spending/related wages earned by direct and indirect 

 employees (offshore and onshore) who reside within the 

 regional economy of the study area. 



Induced employment is accordingly \iery diverse and may occur in both 

 public and private sectors. Examples include doctors and school teachers, 

 store clerks and policemen. 



1 Indirect and induced employment are sometimes lumped together as 

 "secondary" employment. BLM environmental statements are among the OCS 

 studies that use the "secondary employment" concept.) 



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