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The CAP's impact upon farm structures, farm incomes and rural development has attracted significant interest among researchers and policymakers. However, its impact upon employment levels has been studied only indirectly, and valuable inferences have been missed. Taking account of the CAP's role in and impacts on employment requires a broader approach to policy evaluation as employment changes are closely related to changes in sector activity. Besides fulfilling agro‐food production and other rural objectives, the CAP should also be seen as a dynamic job‐generating and maintenance tool. CAP measures, besides directly creating jobs in Pillars I and II, keep alive several farming activities which, without their support, would probably cease, with significant job losses in many regions. Moreover, the CAP, via the multiplier effect (sectoral and fiscal), creates and secures jobs in non‐agro‐food sectors that …