"[T]he potential job impacts associated with KXL construction are quite small, both absolutely and certainly relative to the employment levels estimated by the Perryman study. In comparing these results with those from the Perryman study, it is useful to keep in mind that even results based on the Perryman study would be much lower, once they are adjusted for more realistic project cost assumptions.
"Starting with the Perryman study total employment estimated for project construction (119,000 person-years), the Perryman results can be adjusted for more realistic project cost assumptions. Also starting with the $6.6 billion in project costs assumed by Perryman, and adjusting for the $5.4 billion project cost for KXL in the US, the adjusted Perryman result is about 97,000 person-years. Next, instead of assuming a $4 billion KXL US project cost not yet spent, the adjusted Perryman result drops to about 72,000 person-years. And finally, assuming a $3 billion KXL US cost not yet spent or committed, the adjusted Perryman results drops again to 54,000 person-years.
"So even if it is assumed the Perryman study provides a reasonable estimate of job impacts per dollar spent on pipeline construction (i.e. 18 person-years per $1 million), total job impact will be much lower than the Perryman results once a more realistic budget is assumed for project construction. And whatever is estimated for total employment impacts, it must be spread over the relevant period in order to meaningfully estimate annual impacts. For KXL construction, the relevant period is at least two and perhaps more likely three years.
"In this context, it is also important to consider that almost all of the jobs (direct, indirect and induced) associated with Keystone XL will, of course, also be temporary. The operating costs for KXL are very minimal, and based on the figures provided by TransCanada for the Canadian section of the pipeline, the new permanent US pipeline jobs in the US number as few as 50." [Cornell University Global Labor Institute, September 2011]
Cornell University Global Labor Institute: "The Effects Of KXL Construction Could Very Well Lead To More Jobs Being Lost Than Are Created." From a section of the Cornell University Global Labor Institute report titled "Four Ways Keystone XL Could Be A Job Killer":
"The industry-generated jobs data are highly questionable and ultimately misleading. But this is only part of the problem. These industry-generated data attempt only to tell the positive side of the KXL jobs story. There is evidence to suggest that the effects of KXL construction could very well lead to more jobs being lost than are created. In this section, we show four ways that jobs can be destroyed or prevented by KXL -- higher petroleum prices, environmental damage such as spills, the impact of emissions on health and climate instability, and the chilling effect KXL approval could have on the emerging green economy.
[...]
"Put simply, KXL's job creation potential is relatively small, and could be completely outweighed by the project's potential to destroy jobs through rising fuel costs, spill damage and clean up operations, air pollution and increased GHG emissions." [Cornell University Global Labor Institute, September 2011]
ThinkProgress Chart Reveals "TransCanada's Wildly Inflated Jobs Promises." On November 4, ThinkProgress published the following chart based on the high-estimate of Cornell Global Labor Institute's report and the TransCanada commissioned Perryman Group's report:
[ThinkProgress, 11/4/11]
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