What Is Direct and Indirect Employment?


Direct employment refers to employment directly related to the production of products or services or when a person is permanently employed in a firm. Indirect employment refers to when the business generates employment in other businesses to supply or produce goods and services or when a firm contracts some work to a person.
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Direct employment refers to the total number of persons employed in an organisation and belongs to a certain sector. Indirect employment is employment throughout the chain of production and it refers to people contracted by a firm to provide intermediate components or products or services to an organisation.
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A compensation package is a sum of the benefits, direct and indirect, that an employee receives from an employer. Examples of benefits include: salary, allowance ...