How does government investment in infrastructure affect employment?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

Government investment in infrastructure typically creates temporary jobs during the construction and development phases of projects such as roads, bridges, and public transport systems. These projects require a considerable workforce, leading to job creation in sectors like construction, engineering, and project management.

While the jobs generated from infrastructure investment may be temporary, they can have significant positive effects on the economy and employment levels in the short to medium term. Workers involved in these projects often find work on various initiatives funded by the government, contributing to local employment and stimulating surrounding businesses through increased spending.

This form of investment can also lead to long-term benefits, such as improved accessibility to employment and services, which can further encourage job creation in other sectors. However, it’s important to note that while these jobs can be temporary, the acceleration in economic activity often leads to further employment opportunities in the long run.

The other options do not accurately depict the overall effects of government investment in infrastructure. For example, the idea that it causes job losses in certain sectors may hold true for specific industries, but the overall impact tends to favor job creation. Stating that it has no impact on employment ignores the substantial evidence of job creation associated with infrastructure projects. Lastly, while it can lead to lower unemployment over time, this

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy