These indirect effects on employment from the resources boom arise through two main channels: one operating through a demand effect as investment ramps up, and the other through an income effect. In terms of demand, the improved outlook for resource-sector investment has increased demand for a whole range of ancillary professional services.
These include engineers, project managers, equipment lessors, lawyers, accountants, recruiters and IT specialists. As a result, employment in a number of these business services has grown strongly over recent years (Graph 11). In terms of the income effect, the higher prices we are receiving for our exports has delivered a tangible increase in national income.