What is direct and indirect job creation?

The EB-5 visa is one of the pathways to obtaining permanent residence in the United States through investments that generate jobs. One of the fundamental requirements of this program is that the investment creates jobs, which can happen in two ways: directly and indirectly.

Direct job creation occurs when the company financed by the investment hires new employees immediately. In other words, these are the jobs that, in a measurable and direct way, arise or are maintained as a result of the financial contribution. This metric is important because the law requires the investment to generate a minimum number of jobs – normally, 10 direct jobs per investor.

On the other hand, indirect job creation refers to jobs that develop in a secondary manner and are not hired directly by the company benefiting from the investment, but rather through the multiplier effect in the local economy. For example, if the invested company purchases raw materials from suppliers or contracts services from other companies, this can stimulate those organizations to increase their workforce. Therefore, the impact of the investment can extend to other sectors of the economy.

It is important to emphasize that when evaluating an EB-5 project, U.S. authorities consider both direct and indirect jobs to recognize the economic impact of the investment. However, the way these jobs are counted may vary according to the guidelines and the economic model used for the analysis.

Finally, it is worth reinforcing the importance of strictly following U.S. immigration laws and seeking information from reliable sources. It is essential to be aware of scams or marketing campaigns that promise results without the proper legal basis, and always consult secure sources or recognized experts in the field to understand all the requirements and procedures related to the EB-5 visa.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.