Jobs
Indirect jobs
Also called indirect employment, supply chain jobs, indirect job creation.
Indirect jobs are positions created elsewhere in the economy by a project's spending, estimated with an economic model rather than counted from a payroll, and available only to regional center investors. They may fill at most nine of the ten jobs each investor must create.
What it decides
Indirect jobs exist only in the Regional Center Program. 8 CFR 204.6(e) extends the definition of employee to cover a person who works in a job created indirectly through investment in the new commercial enterprise, and 8 CFR 204.6(m)(7)(ii), captioned Indirect job creation, allows a petitioner to prove them by reasonable methodologies including multiplier tables, feasibility studies and market analyses, a standard 8 CFR 204.6(j)(4)(iii) carries into the petition itself. Typical examples are jobs at firms producing the materials, equipment or services the project buys, together with induced jobs, the subset created when those workers spend their wages. Employees of the job-creating entity are not an example: 8 U.S.C. 1153(b)(5)(E)(iv)(I) provides that an employee of the new commercial enterprise or the job-creating entity may be considered to hold a directly created job, and for petitions filed on or after 15 March 2022 USCIS counts such employees toward the required 10 percent direct share, which is how most projects meet it. Indirect jobs may lie outside the regional center's geographic boundaries and still count, on USCIS guidance rather than statute. Under 8 U.S.C. 1153(b)(5)(E)(iv)(I) they may supply no more than 90 percent of an investor's ten jobs, so at least one must be direct, and that ceiling falls to 75 percent under (E)(iv)(II) for jobs estimated to be created by construction activity lasting less than two years. Read the regulation with care: 8 CFR 204.6 was last amended on 3 August 2020 and predates the 2022 reform, so its wording limiting indirect jobs to revenues from increased exports is superseded by 8 U.S.C. 1153(b)(5)(E)(v)(I)(bb), which also recognises capital expenditures, improved regional productivity and increased domestic capital investment.
Where this is explained properly
Pages here that go into indirect jobs rather than mentioning it.
Related terms
- Direct jobsA direct job is a position held by an employee of the new commercial enterprise itself or, in a regional center case, of the job-creating entity, as distinct from an indirect job held at a supplier or other business outside them.
- Induced jobsInduced jobs are jobs a model attributes to the project's direct and indirect employees spending their earnings on consumer goods and services, which USCIS treats for EB-5 purposes as a sub-set of indirect jobs.
- 90 percent cap on indirect jobsThe 90 percent cap limits a regional center investor to meeting no more than nine of the ten required jobs with indirectly created ones, so at least one of the ten must be a direct job; a tighter 75 percent limit applies where the estimated jobs come from construction activity lasting less than two years.
- 75 percent cap on short construction jobsWhere a regional center project's estimated jobs come from construction activity lasting less than two years, the share of the ten-job requirement that may be met with indirect jobs falls from 90 percent to 75 percent.
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