Relationship between industry sales and employment

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5 comments

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    IMPLAN Support
    The Model is linear so there are only a couple of things that we can think of that would change the Output per Worker ratio: 1. While not a true change, changing the Event Year will shift the value of Output per Worker on the basis of inflation. 2. It is important that the Event Year is set prior to entering Industry Sales, or when you change the Industry Sales value your Employment and income estimates will appear to be based on a different estimation. This is the result of the Event Year being set after Industry Sales was entered and thus the Employment and income were estimated on the original deflator value. When you make a change the proper deflators are applied the second round, but this should only happen once if Event Year remains static. 3. If you modify any field, other than Industry Sales after Industry Sales is entered, then you will be telling the software that you want to modify the underlying ratios. This should trigger a set of red exclamation marks in the fields. 4. If you enter a value of Employment or income first and then modify the sales value you can alter the Output per Worker ratio. This too though, should be denoted by red exclamation marks. You would expect to see increases in Output with increased Employment in the Model of course, but as long as you are in the same Event Year the Output per Worker will remain static for any given Sector, if one of the above has not been affected. The underlying Multipliers in IMPLAN for all factors (Output, Value Added and Employment) are static by nature. The only two ways to adjust these are to Customize the Study Area Data or you can affect the Direct and thus the overall Multipliers by putting information into more than one Event field in IMPLAN and thus overriding the underlying regional defaults for the Direct Impact. If none of these appear to be what you are seeing or working with we would love the opportunity to either do a logmein session with you to see the problem or we would be happy to take a look at your Model through a dropbox arrangement. Hopefully this helps --Implan Support Staff
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    robin_bhat
    Thank you for your response. Unfortunately, none of what you mentioned can explain my findings.I checked again with new models. I first set the year, then the sector, then I enter the Industry Sales value - then I change that value. I do not touch anything else. For example: For 2013, sector 38 - Industry sales=$500,000 => Employment=3 Industry sales=$2,500,000 => Employment=17 Note that the ratio changes. I am not adding the results here, but as I mentioned before, the relationship between direct/indirect/induced employment impact also changes. I would like to mention here that I tested these same values (and multiple other values) for the USA study area – and everything seems to be in order in there. Is there a problem with my Alabama data?
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    robin_bhat
    Can you please schedule a LogMeIn session? I had problem with my copy of Implan and the data before - it would not let me do multiregion analysis. Ms. Sara Stauner and others spent quite some time to fix an error in the data at that time. I have a deadline for my project. Would you please help me with this as soon as possible? Thank you.
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    IMPLAN Support
    Hi Robin, We would be happy to replace your data! However, we are still unsure that would resolve the issue. We ran the same analysis you described and are showing the same results that you described in your email. In both these cases, you will find that Output per Worker for Sector 38 is $147,459. The Employment values may not immediately reflect this in the Event because of rounding, but I have attached a spreadsheet to this post with explanations in the spreadsheet, or the results and how it appears on our end based on the description that you provided that he data is doing exactly what it should. Note that in the results the solved Output per Worker ratios in both tables exactly match between the two impact Scenarios. Again if you would still like us to replace your data, or if your results appear to be different than the ones we have shown in the spreadsheet (Dollar Year for View = 2013), please let us know. [attachment=647]h7cf3aa4.xls[/attachment]
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    robin_bhat
    Thank you so much. I see now what I was doing wrong. I was looking at the employment numbers that Implan was estimating for different values of industry sales in the "Events" section of "Setup Activities." I was missing the decimal points. For example, for $500,000, it would show employment=3, not 3.4. I needed to look at the scenario results. I am so sorry. Many thanks for your help.

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