1. How is IMPLAN Employment defined?
Employment data in IMPLAN follows the same definition as Bureau of Economic Analysis Regional Economic Accounts (BEA REA) and Bureau of Labor Statistics Covered Employment and Wages (BLS CEW) data, which is full-time/part-time annual average. Thus, it adjusts for seasonality but does not indicate the number of hours worked per day. Thus if you are using a full-time equivalent (FTE) value to add into IMPLAN results or as the proxy for an Event you will want to convert the FTE value to IMPLAN jobs prior to using it with IMPLAN. Conversely, if you need to report FTEs you will want to convert the IMPLAN jobs to reflect those. FTE and wage and salary to Employment Compensation conversions can be found in our Downloads section. Just choose the Sectoring scheme appropriate for you data and download the related file. Whichever way you are converting, please keep in mind that FTE jobs are always fewer in number than the equivalent Part-time/Full time jobs.
The BEA calculates the number of FTE employees in each industry as follows:
FTE employees = (total number of employees) * [(average weekly hours per employee for all employees) / (average weekly hours per employee on full-time schedules)]
As for their determination on the number of hours for defining "employees on full-time schedules", the BEA uses BLS as a source and adopts their definition of full-time which is accounted for as anyone working 35 hours or more.
The output per worker relationships are based on the average annual job. So if a worker works 6 months, they have half the annual output and that worker will need to be entered as 0.5 jobs. To adjust the seasonal employment, take the job count times the number of months worked divided by 12. In equation form:
IMPLAN Jobs = Seasonal Jobs * [(months of seasonal job)/12]
Seasonal Jobs = IMPLAN Jobs / [(months of seasonal job)/12]
To keep in mind:
- If an industry is dominated by part-time workers this will be reflected in the earnings per worker.
- Employment itself is merely descriptive in the sense that it does not drive the Indirect or Indirect Effects.
- The Total Employment figure in the Model Overview screen represents full and part-time annual average including the self-employed, all federal, state, and local government employment and military employment (including overseas military).
2. Why does the Employment count in the Study Area Data differ from what is reported in other data sources?
IMPLAN jobs include workers that are not accounted for by a number of other data sources. This often means that IMPLAN jobs are larger than many other sources report.
Learn more from our Knowledge Base:
What if your reported Employment value is actually smaller than the reported value from another data source? This can happen because of BEA's rules for redefinitions. Following these rules we redefine some reported Employment, income and production to other Sectors. If your IMPLAN Study Area Data shows less Employment than another report, feel free to post the region, data year and Sector on our community section and we can dig a little deeper to see if redefinitions are involved.
3. What are the differences between Employment Multipliers and Employment Effects?
All Multiplier derivations are based off of Output. Knowing regional total Output and regional total Employment we can create Output per Worker relationships from which we can estimate the number of employees needed per million dollars of Output.
In the Employment Multiplier sheet, Direct, Indirect, and Induced are actual jobs/ million dollars of production.
The resulting Type I and Type SAM Multipliers are derived as follows:
Type 1 (Direct Employment + Indirect Employment/ Direct Employment)
Type SAM (Direct Employment + Indirect Employment+ Induced Employment/ Direct Employment)
4. How does IMPLAN verify the total number of jobs created for modeled Events?
It is important to remember that IMPLAN jobs are not FTEs. Instead, IMPLAN follows the BEA job definitions, which include full-time, part-time, and seasonal jobs. Additionally, verification of the Direct Effect should be relatively easy based on the economic change defined. Generally speaking, we feel that, unless there are large numbers of jobs reported in the Indirect and Induced Effects, that these impacts are largely supported rather than created. This can be demonstrated by looking at the Detail Results of your impact and also by comparing the jobs associated to the impact to the current Employment in the impact Sectors. Unless the change of Employment in the Indirect and Induced Effects are significant in comparison to the current Employment in the Sector, we recommend considering it supported rather than created. In addition, many attempts have been made over the years to verify Indirect and Induced jobs, and this has proved very difficult to actually discern.
The "536 FTE & Employment Compensation Conversion Table" allows you to convert between IMPLAN jobs and FTEs or FTEs and IMPLAN jobs with simple rations for each Industry for the 536 Sectoring scheme. Using another year? Check out the Downloads section to find the Sectoring scheme you are working with and download its FTE and Employment Compensation conversion table.
5. The jobs associated to my short-term impact analysis seem too small. What went wrong?
IMPLAN is an annual Model; therefore the Model will assume that the value being entered as Industry Sales represents production over a year's time. Therefore the Employment estimates provided by the software represent annualized Employment values. When you shrink the quantity of production into a smaller time frame more jobs will be necessitated for the same level of production to occur. Unfortunately there is no 'best' way to adjust for this, and the analyst must use their personal knowledge of the region and Event to account for the changes they want to make to the Employment count. There is no preferred method because IMPLAN has a fixed Output per Worker ratio and therefore cannot adjust for the possibility that a single worker may be able to do more if there is sufficient demand for them to do so. It also cannot account for temporary shifts in workforce resulting from short-term events such as the movement of a part-time job to a full-time job for the period of increased production/demand.
6. How should jobs associated to multi-year construction impacts be reported?
We recommend that you divide the impact over the number of years of the project and report the average jobs per year.
For example, if a construction site generates 85 jobs across 3 years, then the report would state the supported jobs as 85/3 or 28 jobs per year. This is because the jobs on the construction site are not cumulative, in the same way that an employee working a job for 3 years is not viewed as 3 jobs.
We also recommend considering construction jobs as supported instead of created since construction jobs are typically site-to-site and the jobs on the site are constantly changing based on the state of the construction project.
7. If I have an operational impact that occurs year-over-year are the job impacts summative?
Job impacts in year over year operational impacts should not be summed.
Consider this scenario:
Blooms Garden Center opens in 2016 and creates 50 jobs. In 2017, there operations also support 50 jobs, but this does not mean that Blooms Garden Center supports 100 jobs. Instead it means that they support 50 annual jobs. Note also that the jobs are only called 'created' in the first year.
What if the company has incremental employment increases planned?
If Blooms Garden Center purposes that they will expand to add 20 jobs in 2018 then:
- You could look at the impact of their adding 20 jobs in 2018 and the additional sales associated to that.
- You could look at the effect of 70 jobs at Blooms Garden Center in 2018
- The new year-over-year impact would be 70 supported jobs.
8. Why do the Government Employment & Payroll Sectors start with an *?
These are specialty Sectors that represent just government payroll and Value Added. As such these Sectors have no Intermediate Expenditures associated to them and will generate no Indirect Effects. If you are looking to Model the effects of government spending in your region, we recommend you use the appropriate government spending pattern found at Activity Options>Import> Institutional Spending Pattern or a spending pattern from the SpendingPatternsNoPayroll_for_Programs_by_SLGovt. For IMPLAN Pro users, you may already have these spending patterns in you Activity Options> Import> From Another Model>IMPLAN User Data >Utilities if not you can download the library for your Sectoring scheme here. If you are in IMPLAN-Online you can request a spending pattern for your government Activity Type from the list of available spending pattern types and we can send it to you.
The spending patterns found in your Activity Options menu are updated annually but are more generic in their description. Those found in the library are updated every 5 years but are more specific in their description of government activities.
Available spending patterns from the SpendingPatternsNoPayroll_for_Programs_by_SLGovt are:
Federal Govt operating budget expenditures national defense
Federal Govt gross investment national defense
Federal Govt operating budget expenditures nondefense
Federal Govt gross investment nondefense
State & Local Govt operating budget expenditures elementary and
State & Local Govt operating budget expenditures public educatio
State & Local Govt operating budget expenditures other education
State & Local Govt construction elementary and secondary public
State & Local Govt construction public educational facilities be
State & Local Govt invest other education and libraries
State & Local Govt operating budget expenditures hospitals and c
State & Local Govt operating budget expenditures public welfare
State & Local Govt operating budget expenditures sanitation
State & Local Govt construction hospitals and categorical health
State & Local Govt construction public welfare institutions and
State & Local Govt construction public sewerage systems
State & Local Govt construction sanitation
State & Local Govt operating budget expenditures police
State & Local Govt operating budget expenditures fire fighting o
State & Local Govt operating budget expenditures correctional in
State & Local Govt construction police
State & Local Govt construction fire fighting organizations and
State & Local Govt construction correctional institutions
State & Local Govt operating budget expenditures public highways
State & Local Govt operating budget expenditures natural and agr
State & Local Govt operating budget expenditures other general g
State & Local Govt construction public highways
State & Local Govt construction waterports and airports
State & Local Govt construction government-operated transit syst
State & Local Govt construction other commerce activities n.e.c.
State & Local Govt construction gas and electric utilities
State & Local Govt construction government-operated water supply
State & Local Govt construction redevelopment projects
State & Local Govt construction natural and agricultural resourc
State & Local Govt construction other general government activit
Learn more from our Knowledge Base: