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The Impact of Natural and Lab-Grown Diamonds on People and Society

Feb 29, 2024
15 min read

Updated: Oct 21

Information checked on 21 October 2026


Long before a diamond is sold, it has already touched many lives. Some people work at a mine or operate growth equipment; others support their families through cutting and polishing, or build businesses in trading, setting and retail. Families near mines and factories also experience changes in employment, public services, land use and the local economy.


Natural and lab-grown diamonds both generate income, but where that income is created, who receives it and how workplace risks are shared can differ considerably. Laboratory growth reduces reliance on extracting diamonds from mineral deposits and creates opportunities in materials engineering and manufacturing. Training, public policy and corporate responsibility are needed if existing mining communities and workers are to share in that progress.


The diamond industry's most valuable social contribution is safer work, more stable household income, and the conversion of today's earnings into education, skills and public services that the next generation can use. The price of an individual diamond reveals little of this wider picture.


Contents


Radial network linking diamond production, craft, trade and design with collaborating professions, families, local businesses and public services.

Figure 1. A radial network centred on diamonds and jewellery connects core activities, collaborating professions, families and communities. The rings group different forms of participation. Income, working conditions and demand can affect people throughout this network. Relationship illustration.



1 The livelihoods connected to a diamond


Producing natural rough involves exploration, mining, ore processing and sorting. Lab-grown production requires seeds, equipment manufacturing, crystal growth and subsequent treatment. Geologists, miners, growth technicians and equipment engineers each contribute distinct expertise. The two production routes require different skills, capital and locations, and create jobs in different places.


Once rough has formed, both types of diamond pass through cutting, polishing, quality checks, trading and jewellery manufacturing. Cutters, setters, gemmological staff, designers and repair specialists remain essential to turning a crystal into jewellery. Production technology changes the source of rough and the mix and price of orders, while finished jewellery continues to depend on craftsmanship.


People connected to diamonds

Main opportunities and income

Effects to examine

Miners and growth-equipment workers

Extraction, operations, maintenance and technical work

Safety, wages, shifts and skills development

Cutting and jewellery professionals

Processing, setting, design and testing

Order stability, piece rates and occupational health

Traders and service providers

Rough and polished trade, logistics and retail

Cash flow, stock risk and market access

Residents and families

Local purchasing, jobs and public services

Land and cultural rights, living costs and livelihoods after closure

Countries and the next generation

Taxes, exports, skills and industrial capabilities

Benefit distribution, education and economic diversification


This network also includes business planning and analysis, finance and insurance, logistics and specialist security, and the presentation and communication work of media professionals, performers, content creators and models. Restaurants, accommodation providers and landlords near workshops can also be affected by changes in employment and orders. The industry's social reach extends to people who may never handle a diamond themselves.


Understanding the social effects of either type of diamond means considering the people who make it, the professions that keep the industry operating, and the families and communities connected to it. For the two routes to rough production, see Where Do Diamonds Come From? Comparing the Origins of Natural and Lab-Grown Diamonds.



2 Looking beyond job numbers to working conditions


Mining and factory production have different safety risks


Natural diamonds may come from well-equipped open-pit or underground mines, or from smaller alluvial operations with less mechanisation. Mining requires control of pit slopes and underground stability, heavy machinery, dust, noise and emergency response. Engineering design, monitoring and worker training directly affect how well these risks are managed. The ILO regards a safe and healthy working environment as a right for all miners.[1]


Lab-grown production moves crystal formation into equipment, removing the mining operations needed to obtain that particular diamond and reducing workers' exposure to those activities. Factories must instead manage pressure and heating systems, electricity, gases and maintenance isolation, with the details depending on HPHT or CVD equipment. This change in the risk profile offers opportunities for standardised controls in a fixed workplace and is an important direction for the development of laboratory production.


Occupational risks in natural mining and laboratory growth, with shared responsibilities in cutting, jewellery manufacturing and worker protection.

Figure 2. Occupational risks change between mining and crystal growth. Working conditions in cutting and jewellery manufacturing remain a shared responsibility. Production and workplace-risk illustration.[1][2][16]


Craftsmanship and worker protection both matter


Cutting and polishing either type of diamond requires attention to posture, repetitive movements, machine guarding and adequate breaks. Ergonomic research in diamond manufacturing examines how benches, tools and operating methods affect physical strain.[16] Automation can assist with scanning, planning and processing; whether investment also improves workstations and training depends on the business's decisions.


Income also depends on how work is organised. Fixed wages, payment per stone or task, subcontracting and temporary employment place different levels of order-related risk on workers. For a household, sufficient working hours and wages paid on time may matter more immediately than the industry's total export value.


Protecting the freedom of migrant and vulnerable workers


Lawful employment, voluntary work and fair treatment are separate matters to examine. Recruitment debt, withheld wages, threats and restrictions on access to identity documents can undermine a worker's ability to leave or seek help. The ILO's core test for forced labour considers involuntary work and the threat of a penalty, assessed alongside the means of control in the specific circumstances.[5]


For mines, growth facilities and processing workshops, understandable employment terms, freedom to leave, reasonable hours and accessible grievance channels help turn a job into decent work. CIBJO's ESG principles for laboratory-grown diamonds reflect the responsibilities that factory-based production also has towards workers, communities and governance.[2]

Photorealistic close-up of a craft worker inspecting a diamond beside workshop tools

Diamond inspection and craft work in a workshop. AI scene illustration.



3 The lasting effects on families, children and education


Child labour can carry today's hardship into the next generation


Children face a greater risk of hazardous work where household income is unstable, adults lack employment protection and continued schooling is difficult. For mining families, immediate earnings can come at the cost of a child's classroom time, health or education. This can restrict later access to other work and make it harder for the household to move beyond low income.[4]


Possible family pathways linking unstable adult income and hazardous child labour, and the support that helps children remain in education.

Figure 3. Stable adult income, continued schooling and access to skills shape the next generation's choices. Arrows show possible pathways of influence rather than an inevitable sequence for every family.[3][4]


There are documented examples of these risks. The US Department of Labor's 2024 country report on Sierra Leone identifies diamond mining among hazardous activities performed by children and records forced-labour concerns in alluvial diamond mining. This evidence identifies risks in a particular place and year; it helps assess high-risk supply chains rather than establish one conclusion about all natural diamonds or an entire country.[3]


Families need viable alternatives


Effective improvements address adult income and schooling together. Safer, lawful and sustainable employment for adults, alongside transport, education support and child protection, helps children remain in school. The ILO's discussion of child labour in mining also connects education with improvements in adults' working conditions.[4]


By reducing demand for diamond extraction, lab-grown diamonds can avoid direct exposure to these mining-related risks. Families who already depend on mining still need alternative livelihoods where they live. A new factory in another country does not automatically cover their living costs. Supporting production that requires less extraction and supporting affected families through change can form part of the same approach.



4 Supporting communities while protecting their lives and culture


Local employment and purchasing can retain income in the community


The livelihoods supported by a mine or factory extend into transport, maintenance, catering, accommodation and other local services. When residents obtain jobs and local small businesses can compete for contracts, more income has the opportunity to remain in the community. An operation that brings in most staff, supplies and services from elsewhere may generate fewer benefits for neighbouring households, even at a large scale.


Residents' interests go beyond employment. Land-use changes, increased traffic, housing demand and long shifts can alter everyday life. For Indigenous peoples and traditional communities, hunting, grazing, ancestral land, language and knowledge passed between generations can have value beyond wages. The people affected need a voice in decisions about these rights and industrial interests.


Community benefits assessed through income, cultural and living rights, and livelihoods after closure, with agreements and monitoring.

Figure 4. Community benefits involve residents' income, rights relating to everyday life and culture, and plans for the period after an operation ends. These issues can be included in specific agreements and monitoring.


Making commitments measurable through agreements


Canada's Northwest Territories government uses socio-economic agreements to monitor commitments associated with resource projects. Its official list includes the Ekati, Diavik and Gahcho Kué diamond mines.[6] The value of this approach lies in following up public commitments throughout an operation's life.


Employment and purchasing outcomes should be assessed through the jobs residents actually obtain, opportunities for advancement, continued orders for local businesses and the handling of grievances. A donated school or clinic also needs the resources to keep operating. For a community, lasting services and participation in decisions can matter more than a one-off donation.


Mine closure also brings responsibilities towards people


A deposit eventually reaches the end of its economically viable life. Factories can also close because of changes in technology, costs or orders. When Diavik completed its final production in 2026, the Northwest Territories government said the mine had supported more than 1,100 jobs annually over the years and identified employment support and training as part of the transition.[7]


A mine can have provided valuable income while its eventual closure still creates a need for new work. Its lasting contribution therefore includes transferable skills, local businesses capable of operating independently, and public services that continue to function.



5 Turning diamond revenue into national development


Botswana invested diamond income in public services


Botswana's experience shows how diamond income can help finance education, healthcare and infrastructure. The World Bank credits diamond wealth with supporting decades of economic and social progress. Schools, health facilities and roads are ways in which that income can improve daily life for people who do not work directly in mining.[8]


Botswana diamond revenue reinvested in public services, with historical school, healthcare-access and paved-road outcomes from a World Bank report published in 2015.

Figure 5. Diamond income reaches education, healthcare and infrastructure through public finance. The figures below record historical development outcomes reported by the World Bank in 2015. Together with the principle of reinvesting mineral income, they show how resources can support people's living conditions.[9][10]


A clear fiscal principle helps explain this process. A 2024 article on the IMF's Public Financial Management Blog describes Botswana's Sustainable Budgeting Principle: revenue from extracting non-renewable minerals should be reinvested in physical assets such as roads, water and power infrastructure, human capital such as education and health, or financial assets. Resources sold today can thereby leave services, skills and savings that remain useful in future years.[9]


Schools, healthcare and roads make the benefits tangible


The World Bank's 2015 Systematic Country Diagnostic records concrete results of this development. Secondary schools increased from three at independence in 1966 to more than 300 by the period described in the report; about 95% of residents lived within eight kilometres of a health facility; and the paved road network reached approximately 7,000 kilometres. The report identifies the opportunity created by diamond discoveries, alongside investment of mineral revenues in physical capital, human capital and institutions, as important foundations of this progress.[10]


For households, these changes mean more opportunities for children to attend school, better proximity to healthcare, and roads connecting people with work and markets. Botswana illustrates how sustained investment of diamond income in public infrastructure can extend benefits beyond the mine. Education, health and transport also give the next generation a stronger foundation for work in other industries.



6 How lab-grown diamonds change the location and skills of work


Equipment, people and industrial collaboration create new capabilities


Lab-grown diamonds make rough production less dependent on the location of natural deposits. Growth equipment, seeds, process control, electricity and technical teams become the conditions for production. Places with materials engineering, machinery manufacturing, quality testing and processing expertise can participate in building this industry.


In 2023, India's government approved five years of research support at IIT Madras covering domestic CVD and HPHT machinery, seeds and growth technology.[11] In China, a 2026 official response from Zhengzhou describes an alliance for superhard-materials talent development and training in gem cutting and polishing.[12] Both examples show how opportunities can extend into research, equipment and specialist education.


Knowledge accumulated around jewellery production can outlast a batch of finished goods. People trained in equipment maintenance, measurement and process management may later apply their skills in other materials or manufacturing roles, depending on the skills involved and jobs available locally. For the growth methods, see CVD vs. HPHT Lab-Grown Diamonds: A Complete Guide to the Two Technologies.


Practical support connecting existing workers to new technical roles, including vacancies, training, income and family needs.

Figure 6. New technical jobs in lab-grown production and the needs of existing workers may be separated by location and skills. Connecting the two requires training, genuine vacancies and practical support for households.


Traders and processing businesses face a changing competitive landscape


For growers and traders, competition centres increasingly on efficiency, consistent quality, delivery and design. New equipment and capacity may improve supply while putting pressure on the prices of comparable goods. Businesses holding stock need to manage changing selling prices and working capital so they can continue paying wages and processing fees. Rising output alone does not establish how well a business is performing.


Cutting businesses may also adjust between natural and lab-grown orders. Both can use some of the same skills and equipment, but processing difficulty, payment and delivery requirements vary by order. Whether workers retain their income depends on orders and employment arrangements. More carats passing through a workshop do not automatically mean higher earnings for every craftsperson.


Transition has to work in the lives of existing workers


New jobs may be in another country or require different qualifications and experience. Retraining takes time and income support, particularly for people with caring responsibilities, limited resources to relocate, or many years in one specialised task. A useful transition makes real vacancies, skill requirements and support during training clear to workers.


Reducing the need for extraction is progress in production. Giving existing workers a realistic opportunity to move into another decent job is a social responsibility that needs to accompany that progress.

Photorealistic scene of diamond growth equipment and an operator in a factory

Diamond growth equipment and its operating environment. AI scene illustration.



7 Diamond trade, national interests and political influence


Influence extends beyond ownership of a deposit


Diamonds generate export earnings and government revenue, making them a means of influence between countries. Producing countries seek to retain resource income; processing centres depend on orders, jobs and supplies; consumer markets can use import rules to influence which sources gain access. Businesses' finance, customer networks and market information also shape bargaining power.


Retaining more processing, testing and trading services within a producing country can create additional professional work. This requires people with the right skills, stable business conditions and competitive services. Operating a mine or growth facility and controlling consumer brands and markets are distinct industrial capabilities.


Russian diamond sanctions show the political role of trade


When the EU announced restrictions on Russian diamonds in December 2023, it described a coordinated G7 objective of reducing an important source of Russian revenue. The measures also addressed Russian diamonds processed in third countries.[13] This policy event shows how cutting location can differ from original source, and how source information can determine whether an order can enter a market.


Such rules also affect other producing countries. In November 2024, Botswana and the G7 Diamond Technical Team announced cooperation on plans for a rough-diamond export certification point in Botswana.[14] Participation in certification and market-access arrangements can affect trade facilitation, administrative costs and local service opportunities.


Different capabilities of producing locations, processing and trading centres and consumer markets, with historical EU and Botswana policy examples.

Figure 7. Producing locations, processing and trading centres, and consumer markets have different sources of bargaining power. The Botswana export-certification cooperation announced in 2024 illustrates a producing country's participation in the rules. This is a historical policy illustration rather than a current customs procedure.[13][14]


The lab-grown industry also needs lasting capabilities


Competition in lab-grown diamonds also involves technology and industrial policy. India's support for domestic machinery and seed research reflects an ambition to build rough-production and equipment-development capabilities alongside processing.[11] Such competition can support research and training. Its lasting benefits depend on practical results, viable businesses and whether workers share in the income associated with improved skills.


Blood diamonds, conflict finance and supply-chain due diligence concern the human-rights harm, armed conflict and governance risks behind transactions. The OECD's minerals guidance sets out an approach to managing these issues.[15] For the source-related framework, see What Are Blood Diamonds, and How Has the Industry Worked to Combat Their Trade?.



8 RAGAZZA's view of the social value of diamonds


At RAGAZZA, we support the development of lab-grown diamonds. Crystal engineering provides genuine diamonds with less reliance on opening new diamond deposits, while enabling more people to include diamonds in everyday jewellery and design. Technology that makes a beautiful material more accessible is progress worth supporting.


More affordable choices can give consumers greater flexibility in their budgets. For jewellery professionals, design, cutting, setting and repair retain their specialist value. We care about how materials and craftsmanship become jewellery suited to being worn, and believe industrial progress should respect the people who make it. These benefits are found in the wearer's experience and in people's work, beyond the volume of rough produced.


The public services and household livelihoods historically supported by natural diamonds also deserve recognition. Supporting growth technology and caring about people affected by the transition can be part of the same position. A better future requires attention to both new opportunities and existing workers' needs.


When considering social value, we therefore look at safe and voluntary work, income that supports everyday life, and skills and public services that remain useful over time. CIBJO's social-responsibility principles for laboratory-grown diamonds and the OECD's approach to minerals-related human-rights risks give these issues a practical foundation.[2][15]


People's wellbeing also depends on drinking water, land and healthy living environments. Explore the environmental comparison in Natural vs Lab-Grown Diamonds: Their Impact on the Environment, or broader purchasing considerations in The Advantages and Disadvantages of Lab-Grown Diamonds.

Jewellery display counters and the RAGAZZA name inside a showroom

A RAGAZZA showroom. Retail responsibility includes product explanations and customer service.



9 Frequently asked questions


Q1 Does buying a lab-grown diamond still support jewellery workers?


A: Yes. Lab-grown diamonds require equipment, growth, cutting, testing, setting, design and retail services, all involving professional work. Rough-production jobs differ from those in natural diamond mining, while cutting and jewellery manufacture are shared activities. Workers' actual benefits depend on pay, hours and employment protection.


Q2 Why might residents remain poor in a country with substantial diamond exports?


A: Export income is received by businesses, investors, workers and government, then reaches households through wages, local purchasing and public services. Local business participation, workers' pay and the use of public revenue all affect the benefits residents receive. Household income, employment opportunities and public services need to be considered together to understand improvements in living conditions.


Q3 Which activities require particular attention to child-labour risks?


A: Officially documented examples include diamond mining in Sierra Leone, where hazardous work by children and forced-labour risks require particular attention.[3] Checks should establish production location, actual tasks and employment arrangements; processing and subcontracting should also form part of supply-chain management. Findings in one place cannot establish labour conditions for all natural or lab-grown diamonds.


Q4 Can a diamond grading report prove how workers were treated?


A: Identification and grading examine the diamond's material and quality characteristics. Pay, working hours, recruitment and grievance handling require employment records, worker interviews and relevant supply-chain checks. A document's purpose and scope determine what it can substantiate.[2][15]


Q5 How can the lasting community benefits of a diamond project be assessed?


A: Look at jobs and training residents actually receive, purchasing opportunities for local firms, continuity of public services, and channels for participation and grievances. Plans for workers' next jobs and community income after closure also matter. These lasting outcomes reveal more than a single donation amount.[6][7]



10 References


Information checked on 21 October 2026. Read country, mine and policy examples in their stated years. Their figures do not represent global averages for natural or lab-grown diamonds.



Background on occupational safety, labour rights and gender in mining. General mining statistics have not been presented as diamond-industry statistics.



Industry guidance covering employees, families, communities and governance. It is not an audit of any individual factory.



Country-specific findings on hazardous child labour in diamond mining and forced-labour risks in alluvial mining. These findings are not extrapolated into a global rate.



Background on child labour, education and supply-chain risks. Older production shares are not used as current market data.



Official explanations of voluntary work, recruitment debt, retained identity documents and freedom to leave. Individual cases require assessment of the facts and applicable law.



Implementation and monitoring of resource-project agreements, including Ekati, Diavik and Gahcho Kué. Arrangements and outcomes vary by community.



Employment and transition information issued at final production. More than 1,100 annual jobs describes the mine's historical contribution, not a global mining average.



Diamond-related economic and social development, public investment and structural issues. The overview is updated by the World Bank.



The article dated 8 July 2024 describes the Sustainable Budgeting Principle and reinvestment of mineral revenues in physical, human and financial assets.



Page 1 records historical changes in schools, roads and access to healthcare, and explains the role of diamonds and resource management in development. Figures are historical observations reported in that document.



The five-year research support approved in 2023 includes CVD and HPHT equipment and growth technology. The approval does not establish completion of every planned output.



Local-government information on talent development, gem-cutting skills and industry support. A specific local policy example rather than global lab-grown-diamond employment data.



A historical policy example connecting diamond trade, national revenue, sanctions and third-country processing. It is not a guide to current customs thresholds.



Cooperation announced in November 2024 illustrating participation by a producing country in market-access arrangements. The announcement is not presented as evidence that all planned measures are now complete.



A government-backed framework addressing human rights, conflict and governance risks. Its purpose differs from diamond identification and quality grading.



Professional background on cutting work and ergonomics. Historical illness rates are not used as current prevalence estimates.


Original article by RAGAZZA DIAMOND.

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