Beyond their direct and total economic impacts, events can have further positive effects on a host community’s job market and the health of its business sector.
Events can have immediate employment effects by creating new jobs associated with their planning, preparation and delivery. But they can also be used to support job creation in other areas of the economy, while a focus on skill development among event volunteers – particularly when targeted at specific groups – can have a further positive impact on employment rates. Upskilling and growing the host economy’s capability in this way can also improve its ability to attract inward investment or strike new trade deals after the event.
What to measure
The OECD and ASOIF recommend using the following measures to understand an event’s business and employment impacts:
- Direct event employment (temporary/permanent jobs created)
- Indirect employment linked to the event (temporary/permanent jobs created)
- Percentage of event jobs filled by people in target groups
- Percentage of new jobs filled by people previously unemployed
- Percentage of volunteers developing new skills through their roles at the event
- Number of people gaining new skills through connections with the event (ASOIF reference SO-SD2.1)
- Event-related spending on employment, skills or training programmes
- Value of trade deals associated with the event (ASOIF reference EC-OUTCOME2)
- Value of contracts with local suppliers (ASOIF reference EC-OE2.1)
- Value of contracts with SMEs and social businesses
- Value of foreign direct investment (FDI) associated with the event
- Number of B2B meetings associated with the event
The OECD considers these impacts to contribute towards the UN SDGs Quality Education (Target 4.4), Decent Work and Economic Growth (Targets 8.1, 8.3, 8.5 and 8.6) and Reducing Inequalities (Target 10.2).
Business and employment impacts: How to measure them
A range of options is available to events looking to evaluate the business and employment impacts they generate.
The OECD, for example, recommends using survey and administrative data to determine the number of new jobs created directly by the staging of an event (e.g. organising committee roles, construction workers on new facilities etc). An alternative approach is to use economic multipliers to estimate the level of full-time equivalent (FTE) employment needed to meet demand for additional goods and services experienced by local businesses through the event (e.g. hotel and restaurant staff etc).
Estimates of the value of contracts awarded to host economy suppliers, small- to medium-sized enterprises (SMEs) and social businesses rely primarily on data from the event organiser. Where sub-contracting takes place, the OECD recommends establishing clear guidelines for suppliers to follow in accounting for this work.
Business and employment impact assessment in action
Case study: 2021 Rugby League World Cup
Case study: 2022 Edinburgh Festivals
Case study: 2023 UCI Cycling World Championships