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How are EB-5 indirect and induced jobs defined?

In an EB-5 regional center context, one can also count the induced and indirect jobs created. What is the definition of an indirect job and an induced job? Do these jobs need to be permanent, and what is considered permanent? Does any indirect or induced job worker need to work more than 35 hours per week? Can they be part-time staff?

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The terms "indirect" and "induced" are used by economists and have specific meanings in an economic context. For immigration purposes, however, "indirect" and "induced" jobs are both counted as "indirect" job creation in an EB-5 case. Any direct jobs must be full-time and permanent.

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    John J Downey

    Immigration Attorney
    Answered on

    The indirect jobs are calculated in an economic model produced by a firm dealing with mathematical projections. Indirect are jobs that are offshoots of the project, e.g. suppliers of materials, drivers delivering products, etc. Induced jobs are jobs produced in the area of the project, e.g. the direct and indirect employees will be spending their money in the community, thereby creating more employment. The statute explains a full-time job as 35 hours per week. A permanent job is one that will last through the two year period of the conditional residence period. There is no need for any job to be more than 35 hours. Two part-time people at 17.5 hours each would count as one job.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Fortunately, as immigration attorneys, we work with qualified economists who prepare the economic reports and job creation estimates. Generally, the distinction between indirect and induced jobs is not as important as that between direct and indirect/induced jobs. Either way, these are jobs that are not at the new commercial enterprise itself. Some economists count jobs created at the job creating entity as indirect.

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