Multiplier Question

i am a brand new IMPLAN user and am trying to understand how the results are calculated. In the manual, there is a scenario in Ch 5 about a $5 million office building construction project. I did this scenario in an Arizona County (Pinal) to see the results. The Direct Effect on Employment came out to 34.3 jobs. I am trying to figure out how this number was reached based on the multipliers for Pinal County. Summary data tells me total output in the county is $87,221,779 and total employment is 614.2 for industry sector 34, which is the sector in which I created a $5M construction project. If I divided output by employment and then divide this number into the $5million, I get 35.2 jobs. How do I get to the 34.3 that the model kicked out? Please help the novice.......

IMPLAN Support

December 03, 2014 15:50

Hi Georganna, Thank you for your post. I apologize for the delay of our response. The missing item is the effect of deflation. The Total Industry Output and Employment values you are using are based on Study Area Data and thus are in the year of the Study Area Data. Likely, the Event Year is 2014 or later, so there needs to be deflation to the Output per Worker value in order to complete the calculation. $87,221,779/614.2=$142,008.7577336373 Output per Worker $142,008.7577336373*1.026 (the 2012 deflator to 2014)= $145,700 for the 2014 equivalent Output per Worker $5MM/$145,700.9854347118=34.31 Thanks.

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