Gross wages and salaries paid by employers are not the wages and salaries that employees receive. Net, rather than gross, is available for spending.
Employees generally do three things with net income.
Local businesses must make purchases from other businesses and hire additional employees to meet the increased demand for goods and services. The total employment effect in 1997 equaled 15,114 jobs. The additional earnings that were generated in the economy as a result of this initial spending are referred to as indirect earnings.