Job Creation

The total number of jobs created for a project can broadly be categorized into three parts. Firstly, there are direct jobs, which refers to jobs that are a primary output of the project. Secondly, there are indirect jobs, or jobs that are an output of additional activities made possible by the project, but not as a direct output of the project itself. An example of this would be an increase in demand for steel during construction, resulting in steel suppliers hiring more workers. Lastly, there are induced jobs, which include any additional jobs flowing from the wider beneficial effects of the project. A common example of this would be the increase in retail and service jobs to serve the increase in workers in a certain area due to the project.

Normally, indirect jobs created due to a project are approximately 60% of total direct jobs created, with induced jobs being approximately 40%.

However, due to the large scale of transport projects, the indirect and induced jobs created are usually much higher. Based on predictions made by the London Government, these percentages would increase to approximately 104% and 78% for indirect and induced jobs respectively.

This results in approximately 46,000 jobs created as a whole due to the construction and completion of the MM2.

It is important to note that these direct and indirect jobs may disappear once the MM2 is complete.

For London, direct job estimates were taken from a report for the Mayor and estimated job creation was based on an Input/Output model with data from Office of National Statistics, where estimates are determined based on how much spending goes into the project. However, as we do not have access to Input/Output Data for Melbourne, we had to estimate the jobs created by splitting them into potential categories and basing them off of preexisting estimates or older projects.

The construction of the MM2 encompasses many different parts, but the largest would have to be the tunnel. We estimate the construction of the MM2 tunnel to create 7000 jobs, which is the same number of jobs created due to the tunnel for MM1. We estimate the numbers to be similar given that the tunnel boring machines are going to be the same and are planned to be used right after MM1 tunneling is complete.

Next, there are the level crossing removals. The benefits of removing level crossings are two fold. First, there is improved safety as there will be even more restricted access to train tracks due to the lack of direct access to the tracks from the road. Secondly, by reducing the chances of accidents, delays in service due to track disruptions are also likely to be reduced significantly, allowing for the more frequent and consistent running of trains.

Additionally, the MM2 line is not only connecting two preexisting lines, it is also extending said lines to Mernda in the North and Wyndham Vale in the West. Based on figures from Victoria's Big Build, a website that is part of Victoria's state government, these line extensions will likely generate 3000 jobs. As of now, the extension to Mernda is already complete but construction on the extension to Wyndham Vale has not begun.

The new line will also come with new trains as well as a depot to maintain these new trains. The new trains will be able to travel at higher speeds more frequently thanks to signalling upgrades while carrying more people compared to the older trains. As the new trains for the MM2 will be the same model as the MM1 trains, estimates were based on the amount of jobs created for building the MM1 trains and depot.

Lastly, there there are also a small number of manufacturing and maintenance jobs that will be created to ensure the line will be maintained and up to standard when construction is complete.

It is important to note that there are likely to be more factors involved in the creation of direct jobs for the MM2, such as the training of new drivers for the new trains as well as the hiring of new station attendants. However, some of these factors had no method of being predicted by us with our current resources and as such have been excluded from our analysis.