OVERVIEW
There are several Industries that are not fully covered by the Bureau of Labor Statistics’ Census of Employment and Wage (CEW) data and thus require different data sources and techniques.
These Special Industries include the following:
- Farm Industries
- Construction Industries
- Railroad Transportation
- Government
Using different data sources is one of two approaches that IMPLAN employs to account for exclusions and undercoverage by the CEW. Read more about this in Accounting for Non-Disclosures, Exclusions, and Undercoverage in Employment Data.
FARM INDUSTRIES
Farm Industries are unique from other Industries in IMPLAN as they often have different data sources and data processing techniques to capture the full economic activity in that Industry group. For example, while Total Industry Output (TIO) by Industry is only available at the national level for most Industries, state-level raw data sources exist for Farm Industry TIO. On the other hand, the primary data source for most industries’ Wage and Salary Employment and Income only has about 90% coverage for Farm Industries; thus, other data sources are used for these data elements. This section describes the data sources and estimation methods for Farm Industries.
BEA BENCHMARK I-O DATA
The BEA Benchmark Input-Output (I-O) tables, which are updated every 5 years, provide us with production functions (industry spending patterns) for each of IMPLAN’s 14 farm sectors. They also provide Output, Employee Compensation (EC), and Gross Operating Surplus (GOS) for each farm sector. However, the BEA Benchmark tables do not separate GOS into its component parts (Proprietor Income (PI) and Other Property Income (OPI)), nor do they provide Employment estimates. Thus, we combine the latest BEA Benchmark data with other data sources from the same year to calculate ratios that are used in the annual data production process, as described below.
Supplementary Data
BEA REA Data
From the Bureau of Economic Analysis’ (BEA) Regional Economic Accounts (REA) data series, we obtain national Benchmark-year values of Employee Compensation (EC), Proprietor Income (PI), Wage and Salary Employment, and Proprietor Employment. These data do not have the specific farm sectors broken out; rather, they are for the aggregate “Farm Total” sector.
BLS CEW Data
From the Bureau of Labor Statistics’ (BLS) Census of Employment and Wages (CEW) data series, we obtain national Benchmark-year values of Wage and Salary Employment and Income by IMPLAN farm sector.
USDA Census of Agriculture
From the U.S. Department of Agriculture’s (USDA) Benchmark-year Census of Agriculture, we obtain national farm counts (as a proxy for the number of proprietors) by IMPLAN farm sector.
Ratio Calculations
Every 5 years, with the release of a new set of BEA Benchmark tables, these four data sources (the BEA Benchmark I-O data, BEA REA data, BLS CEW data, and USDA Census of Agriculture data) are used in conjunction to calculate the following ratios for each of the 14 IMPLAN farm sectors:
- Wage and Salary Employment per Output
- Proprietors per Output
- EC per Wage and Salary Employment
- Proprietor Income per Proprietor
These ratios, inflated to the current IMPLAN data year1, are then used in the annual data production process, as described below.
ANNUAL OUTPUT ESTIMATES
USDA ERS and NASS Data
Each year, we obtain estimates of state-level farm sector output from the USDA’s Economic Research Service (ERS) and National Agricultural Statistics Service (NASS). These data are current, empirical (i.e., based on observation and survey, rather than trend extrapolations), and at the necessary level of sector detail, so all other data elements for the farm sectors are based off of these output data.
Census of Agriculture Data
For some states, ERS and NASS omit certain crops with low production levels. In such cases, we project values from the latest Census of Agriculture to estimate values for these low production states.
Distribution to Counties
These state values are distributed to counties based on the ratio of county production to state production from the latest Census of Agriculture. For example, if County A has 10% of the state’s grain sales (or acreage if sales is not available, and farms if acreage is not available), then it gets 10% of the state’s output value for grain farming.
ANNUAL EMPLOYMENT AND LABOR INCOME ESTIMATES
While the BLS CEW data are current and have the necessary sector detail, they omit many small farms and all proprietors, and thus only provide roughly 90% coverage of all farm employment. And while the BEA REA data provide full coverage of all employees (including proprietors) and their labor income, the BEA REA data do not have the necessary sector detail – they have a single “Farm Total” sector.
Thus, we use the following methodology to obtain annual estimates of farm employment and labor income:
- Calculate first estimates of Wage and Salary Employment and Proprietor Employment for each place and farm sector by multiplying that place and farm sector’s annual Output by the Benchmark-based “Wage and Salary Employment per Output” and “Proprietors per Output” ratios (calculated as described above).
- Control these first estimates of place- and sector-specific estimates of Wage and Salary Employment and Proprietor Employment to projected2 BEA REA control totals for “Total Farm” Wage and Salary Employment and Proprietor Employment for each place.
- Calculate first estimates of EC and Proprietor Income for each place and farm sector by multiplying that place and farm sector’s annual Output by the Benchmark-based “EC per Wage and Salary Employment” and “Proprietor Income per Proprietor” ratios (calculated as described above).
- As with all IMPLAN data elements, all of the afore described data elements are geographically controlled so that the sum of all state-level values match their corresponding U.S. values, and all county-level values sum to their corresponding state-level values.
ANNUAL OTHER VALUE ADDED ESTIMATES
The BEA releases state-level GDP data at the aggregate “Farm Total” level, that includes the break-out of GDP into EC, TOPI, and GOS. GOS consists of Proprietor Income (PI) and Other Property Income (OPI), so OPI is derived by subtracting our estimates of PI (described above) from GOS. These “Total Farm” control values are distributed to the IMPLAN sectors based on the latest BEA Benchmark’s characteristics for GOS and TOPI, and by using data from the USDA ERS Agriculture Resource Management Survey (ARMS), where available, as described next.
ARMS Data
The USDA ERS Agriculture Resource Management Survey (ARMS) reports some sub-components of the Value-Added components for certain commodities and certain states. We incorporate the ARMS data to help distribute the BEA’s Value-Added data (which are only at the “Total Farm” level) to the IMPLAN farm sectors.
The ARMS data are typically lagged one year relative to the IMPLAN Data Year, in which case we project them (based on farm sector Output). While the ARMS data are only used as distributors among the IMPLAN farm sectors, such projection is important to prevent a farm sector from seeing a significant drop in Output while receiving a large share of TOPI or OPI based on prior-year un-projected distributions. The ARMS data are not available for all states and commodities. For the states and commodities for which there are no ARMS data, we use Benchmark–based distributions. We use the following data elements from ARMS:
- Government payments, i.e., subsidies (a negative component of net TOPI)
- Real estate and other property taxes (a large component of gross TOPI)
- Interest (a component of OPI)
- Depreciation (a component of OPI)
Distribution to Counties
State-level OPI and TOPI estimates are distributed to counties based on EC and Employment, respectively.
NOTE
Because the farm sector data are largely derived, using lagged and/or more-aggregate data, and because farm sector Output can fluctuate in other ways not associated with labor (e.g., weather conditions), analysts with local agriculture data are encouraged to use their local data when setting up analyses in IMPLAN.
CONSTRUCTION INDUSTRIES
IMPLAN construction Industries are not NAICS-based, but rather are defined by the Census Bureau’s types of construction. There are 10 new construction and 3 maintenance and repair construction Industries in IMPLAN's current Industry scheme.
OUTPUT
National Output values for the new construction Industries come from BEA NIPA tables 5.4.5-Private Fixed Investment in Structures by Type and 5.9.5. Gross Government Fixed Investment by Type. National Output for the maintenance and repair construction Industries are based on the ratio of maintenance and repair to new construction from the BEA's Annual Gross Domestic Product (GDP) by Industry series. These values already contain "redefined" construction activity and thus do not require any redefinition procedures on our part. These national values are distributed to states and counties based on employment and income.
EMPLOYMENT & INCOME
The BLS' CEW data and the BEA's REA data provide construction employment and income values at the national, state, and county level for a single aggregate construction sector. These values are split amongst IMPLAN's 13 construction Industries using various ratios from the latest BEA Benchmark I-O tables. "In-house" construction activity performed by non-construction Industries is "re-defined" into the appropriate construction Industries, following BEA Benchmark conventions. All estimates are then controlled to higher geographic levels.
RAILROAD
The BLS’ CEW excludes most employees of railroads. Therefore, IMPLAN obtains railroad employment data from the U.S. Railroad Retirement Board.
GOVERNMENT
ADMINISTRATIVE GOVERNMENT VERSUS GOVERNMENT ENTERPRISES
IMPLAN data includes several types of government activity. "Administrative" or "general" government is considered an Institution in IMPLAN. There are payroll-only Industries that are purchased exclusively by administrative government spending patterns. In contrast, government enterprises are Industries that have profiles similar to those of Industries. The Bureau of Economic Analysis (BEA) defines government enterprises as "Government agencies that cover a substantial portion of their operating costs by selling goods and services to the public and that maintain their own separate accounts." The BEA Benchmark I-O tables treat government enterprises as industries and IMPLAN follows this convention. IMPLAN has 8 government enterprise Industries. All remaining government agencies are part of "general" or "administrative" government.
ASSIGNING NAICS-BASED ESTABLISHMENTS TO IMPLAN CODES
Most data sources other than the BEA Benchmark table do not distinguish government enterprises from administrative government establishments. The BLS' CEW program, for example, reports employment and wages for government establishments by NAICS code and by ownership type (federal, state, or local). We assign government establishments to enterprise or administrative payroll Industries according to the BEA Benchmark table. If a government enterprise makes a particular commodity, then any government establishment that fits the NAICS code of that commodity is classified as a government enterprise. For example, in the latest (2012) BEA Benchmark table, "Electric power generation, transmission, and distribution," which corresponds to NAICS 2211, is made by private businesses in the electrical Industries but also by "State and local government electric utilities." Accordingly, any government establishment owned by state or local government under NAICS 2211 is classified in IMPLAN Industry 530 or 533, respectively. If the BEA Benchmark table does not show a government enterprise Industry making a Commodity, then any government establishment in that Commodity's corresponding NAICS code is classified as administrative government. Tables 1 through 3 show IMPLAN Industry assignments for establishments by ownership type and NAICS code. Note that military employment is not covered by any of our NAICS-based sources and is estimated from military employment data reported by the BEA.
Table 1: Federal Government
Table 2: State Government
Table 3: Local Government
ESTIMATING EMPLOYMENT AND WAGES
The BEA’s REA data are our controls; however, while the BEA’s REA data break out State Government from Local Government, they don't have the necessary Industry breakout (Education vs. Hospitals and Health Services vs. Other Services). Thus, we use the government-level BLS’ CEW data to split the disclosed and projected BEA REA State and Local Government data into the associated IMPLAN industries (Education, Hospitals and Health Services, and Other Services).
RELATED ARTICLES
Accounting for Non-Disclosures, Exclusions, and Undercoverage in Employment Data
Employment and Labor Income Data Sources
1ERS and NASS occasionally change their reporting for aggregate categories between a) including the sum of non-disclosed values for subcategories in their aggregate category values and b) making the aggregate value simply the sum of disclosed children. We adjust our processes accordingly.
Written April 18, 2024
Updated July 9, 2024