Impacts of a project that lasts less than 1 year

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cathythomas

• January 19, 2012 23:07

Hi, I am estimating the impacts of a construction project that lasted 3 months. I've entered the total project cost into a construction sector and the output gives 6.7 direct jobs, 15.5 total jobs, $380,388 in direct labor income, and $755,288 in total labor income. I'm thinking that I should adjust the jobs proportionately by multiplying by (12/3), and that I should leave the labor income figures as they are. That would give a total of 26.8 direct jobs and 62 total jobs over the 3 month project duration with $380k and $755k in local labor income over the period. Can you please let me know if I am analyzing this correctly? Thanks! Cathy

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  DougO

  • January 19, 2012 23:23

  You are correct. Employment is based on annual output per worker. If a worker on average produces 100,000 per year, it would take 4 workers to do it in 3 months. For the indirect and induced effects there may be other considerations. Supplying industries work with overall demand of which this one project is just a part. I would suspect that they would hire employees on a more permanent (annual) basis using demand projections and inventory to even things out. In either case 1 annual job = 4 three month jobs.

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  cathythomas

  • January 19, 2012 23:30

  Thanks Doug. Would you say that the 62 total jobs would be overstated? Do you have any suggestions on how to handle the indirect and induced jobs for a project like this? Thanks! cathy

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  DougO

  • January 19, 2012 23:36

  I think I would tell it as a story: An $x million construction project that employs 27 workers for 3 months and pays $y million in wages, supports an additional 8.8 (15.5-6.7) annual average jobs paying $z within the local region.

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