I am attempting to model the impact of additional output for sector 276, automobile manufacturing for the state of Tennessee. I have information indicating 2000 workers will be hired with total wages of $100,900,000. I have customized the event by adjusting the labor income figure as shown. When I run the scenario for the entire state, I get a direct labor income effect of ($9,569,069). Any suggestions?
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  • As an additional data point, proprietor income shows as a negative $110,469,069 which when summed with Labor income gives the negative direct labor income.
  • Hi Jon, Labor Income is actually the sum of Employment Compensation and Proprietor Income, hence why you are seeing that when you sum the value you entered into the Employment Compensation field with the negative Proprietor Income you get the negative value that you are seeing for Direct Labor Income. We aren't sure exactly what region or year of the data you are using, but it appears that in that year proprietors lost a substantial amount of money in your region and that Industry. If you know that the manufacturing facility that you are modeling has only wage and salary workers in it then you can enter your Employment Compensation value (which should be a fully loaded payroll value including cost of benefits, employer and employee taxes, income taxes, etc) and zero out the Proprietor Income value. This will allow you to see the expected results, and will more clearly reflect the specific facility you are examining. If you do have additional questions if you could provide us the region and year of the data set, the Event Year and Dollar Year for View you are using, and whether you are starting your Event from Employment or Employment Compensation, this information would help us in discerning answers to those questions. One other note, the relationship between compensation and Industry Sales is typically tighter than the relationship between Employment and Industry Sales, so you may want to proxy Industry Sales from your compensation value instead of Employment, if you have done it the other way. Thanks!

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