employment multiplier so high?

Comments

3 comments

  • Avatar
    IMPLAN Support
    Hi Daniel, Would it be possible to get a little more information about the study you are conducting? What inputs are you using? What industries are you comparing sector 47 to? What is the information you have that makes the multiplier seem high? Is this on the model overview screen or in your results? Thank you! -IMPLAN Support
    0
    Comment actions Permalink
  • Avatar
    soungl
    I'm measuring economic impact of biomass electric power plants in NH. The survey of six biomass electric power plants show 121 jobs with $11.6 million in payroll, which are used as input to generate impact estimates. But my question really is about the default model for NH. The top three industries in NH (in terms of employment multiplier) has employment multipliers above 7. I am looking at Explore > Multipliers > Summary Multipliers > employment multipliers What are possible reason that explain such high multiplier?
    0
    Comment actions Permalink
  • Avatar
    IMPLAN Support
    Hello, A significant portion of sector 47's employment multiplier stems from a relationship between the local availability of commodity 3016 and Sector 16's Output Per Worker. Sector 47's Type 1 summary employment multiplier is 6.25 compared to the Type SAM Multiplier of 8.33. The difference between the Type 1 and the Type SAM multiplier is the Type SAM's inclusion of the Induced effect, suggesting that the Indirect Effects are where the majority of employment is occurring. Looking at the detailed employment multipliers for sector 47 and sorting by Type 1 Multiplier, Sector 16 Commercial logging has a multiplier of 1.9, suggesting that sector 47 has a significant employment impact on sector 16. But why? Again, Indirect Effects are where the majority of the employment multiplier is occurring, and the largest Indirect Impact will be from the first wave of Indirect Impacts (Sector 47's Intermediate Expenditures). Navigating to Explore > Social Accounts > Balance Sheets > View By: Industry Balance Sheet > Sector 47 > Commodity Demand tab, the Regional Absorption of commodity 3016 Logs and roundwood is 13.518%. For every dollar of sector 47's Output about $0.14 is spent locally on commodity 3016 (produced by IMPLAN Sector 16). The Output Per Worker for Sector 16 is $82,995 (seen by navigating to Study Area Data > View By: Industry Summary). Therefore, Sector 47 demands a significant amount of Output from Sector 16, and Sector 16 requires a high level of employment to meet that demand. This accounts for the high multipliers.
    0
    Comment actions Permalink

Please sign in to leave a comment.