Primary Employer Definition
What is a Primary Employer?
Primary employer refers to industries that produce more goods and services than can be consumed by the local economy, and therefore export a significant portion of them. A major benefit of primary employers is that external funds are infused into the local economy, and therefore have a substantial impact on output, employment, and wages. A common primary employer is manufacturing.
A primary job is a job that produces goods and/or services for customers that are predominantly outside the community. This creates new "outside" dollars for the community. Once an employer is paid for the products and/or services, he redistributes that wealth in the community through wages paid to employees and through suppliers.
Secondary employers are those employers that serve the local community. Therefore, the goods and services produced are enough to serve a portion, or all, of the local community. Secondary employers play a significant role in the local economy by providing goods and services to residents and primary employers alike. Common secondary employers include retail and dining establishments, which cater primarily to a local consumer market, as well as construction and transportation. In addition, arts and cultural industries are typically secondary employers.