Job impacts in professional services industries?

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    IMPLAN Support
    Hello Jed, Thank you for your forum post. IMPLAN's assumption of Employment is that it is a head count, including Full Time, Part Time and Seasonal Workers. IMPLAN is not reporting a Full Time Employment value in the Results Screen. If your input value in the Setup Activities is an Employment value, this needs to be converted to a head count value. We have a spreadsheet that will convert your head count value to an FTE and vice versa - your FTE value into a head count. http://support.implan.com/index.php?view=document&alias=4-536-fte-a-employment-compensation-conversion-table&category_slug=536&layout=default&option=com_docman&Itemid=1764 Another reason why your Employment value may be higher than anticipated is if you are adding jobs from one year to the next. If this construction project is multiyear, then you will not want to sum your Employment values together to come up with a total impact value. 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. The general contractor in the 1st year is the general contractor the 2nd year; it's not a 2nd job but still the same job. 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. I wanted to mention an additional note that the construction spending pattern does include soft costs example: legal fees and architecture. If you are including those soft costs or professional services that are included in the construction spending pattern; then you are double counting their impact. However, if the nature of this construction project is not your typical project where it goes above and beyond the need for professional services; then we do recommend impacting those specific Sectors in a separate Industry Change. However, if you are doing so, then you will need to pull out those sectors from your Construction Activity, through Analysis By Parts: http://support.implan.com/index.php?option=com_content&view=article&layout=edit&id=359 You can view the current spending pattern of the construction sector you are working with in the Explore>Social Accounts Balance Sheet Tab. You will select your industry from the drop down menu and then click on the 'Commodity demand' tab to see how much of each of these items the construction spending pattern purchases. Regards, IMPLAN Staff
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    posterjl
    Thank you for this. Very helpful. One follow-up for you. If we assume that a single $1bn construction project will create some economies of scale relative to, say, 10 $100m projects, how would that affect the IMPLAN jobs analysis? That is, does IMPLAN know the difference between one big project and ten smaller projects with the same amount of total expenditures? If not, how would we "teach" it? Thanks!
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    IMPLAN Support
    Hi Jed! Thanks for your reply, this is a great question. IMPLAN is unfortunately, not sophisticated to differentiate between 1 large project and 10 small projects. Since IMPLAN is production based, will estimate the impact based on the input entered. For example; If $1B is entered for the construction cost, IMPLAN will estimate the Employment and Employee Compensation needed for $1B of Output. The same is for if you enter $1MM, IMPLAN will estimate the Employment and Employee Compensation needed for that level of Output. IMPLAN will run this impact through the same spending pattern at the same ratio level as a $1B impact. In order to 'teach' IMPLAN to do this, you will need to know Employment and Output. In effect the economy of scale would be a change in Output per Worker. Unfortunately we don't have the level of data available to have different Output / Worker ratios within the same Industry. If you have the data or believe it changes the Intermediate Expenditures: Output ratio, you can use an Advanced Analysis (Analysis By Parts) to reflect this as well. Hopefully this answered your question.

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