Analysis-By-Parts and Direct Employment

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    IMPLAN Support
    Hi Tymon, Thank you for your post. 1. IMPLAN is telling you that for your $2MM construction impact, the result is 25 temporary supported jobs. IMPLAN's employment is a head count, which includes part time and seasonal workers. If you know that your construction impact will take 50 works, then my recommendation is to put in your employment count in the Events screen. Enter your $2MM industry sales first, as the employment will be caculated based on industry sales then over-ride the software's employment figure with yours. Also, if you know both, then that needs to be ran in the same Activity and enter Industry Sales and overwrite the Employment estimate. If the Employment and sales belong to the same Industry activity then if you run two Activities, you would actually be double-counting. http://implan.com/index.php?option=com_content&view=article&layout=edit&id=114 I wanted to also ask if you were using a construction Sector and not a retail Sector. I was also wondering if you are adjusting the LPP? 2. http://implan.com/index.php?option=com_content&view=article&layout=edit&id=373. For the Analysis By Parts method, as indicated in the article, he needs to add back in the Direct Effects. Thanks!
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    tSilva26
    I see. So, I may have been double counting then. I am trying to model the economic impacts of both the construction and operation of a retail store. So, does that mean I would run: - one industry change activity for the construction sector and enter the industry sales value and then the number of known construction workers for the employment value? - and one industry change activity for the expected retail operational sales and employment impact and enter the estimated gross annual sales of the retail store as the industry sales value and the number of full-time employees as the employment value if known? If so, then why do my results not change? Previously, I entered my industry sales value and ran the model. And as a separate activity, I entered the known employee figure for the retail store and ran the model. Thus, I double counted. However, when comparing the results of an activity with just the industry sales value entered with an activity that has both the industry sales value and the employment value, why are the results identical even though the direct employment effects differ? As for adjusting LPP, I have not. Would adjusting the LPP be recommended in this situation? Were you referring to my ABP activity? Thank you for your feedback! Tymon
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    IMPLAN Support
    Hi Tymon, The results are identical because he used the same Output value to set up the Event. Changing the direct Employment value does not change any other number than the direct Employment (and of course, as a result, of the total Employment since total = direct + indirect + induced and he has changed the direct). Employment does not drive any additional impacts - rather, it is the Labor Income value that drives induced effects and the Intermediate Expenditures which drive the indirect effects. Also, if you are entering the retail stores total sales then you would need to select "Gross Retail Margin" (which is the default) when IMPLAN asks. Thanks!
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    tSilva26
    Alright. Can you please confirm that I am understanding this correctly. When modeling the impact of a new retail store, I would only run ONE activity/event and enter the industry change value and then the employment number (if known)? Running two separate activities for industry sales and employment would result in double-counting. If so, does entering the employment value serve as an alternative way of modeling an industry change impact if change in sales is unknown? Thanks! Tymon
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    IMPLAN Support
    Hi, To clarify a couple things: If you run two events for the same thing, e.g. the construction of a building, it will double count. So, if you use the industry sales value as the value of construction to run one industry change event for construction, and run another industry change event based on your employment figure for construction, then you would be double-counting construction impacts. It is not double-counting, however, to run an industry change event for construction and another industry change event for the store's operations. For the construction event: you can enter $ into industry sales if those $ represent the payment for constructing the building. Based on that $ figure you enter, IMPLAN will estimate the corresponding employment effect from the construction event. If you know, however, that construction will cost a certain amount and that a certain number of people will be employed in the construction of the building, you would first enter the payment for construction, then enter your known employment figure, thereby overriding IMPLAN's estimated employment. If you know only the number of people to be employed in constructing the building, enter only that, and IMPLAN will estimate the expected price of constructing the building. For the operations of the store: again, you can use an industry change event. This time, if you know the expected sales of the store, enter that into the industry sales field, and select "Gross Retail Sales" - we misspoke when we said to choose "Gross Retail Margin" - unless the sales value you have is only the amount of money the store makes net of the cost of the raw materials it is selling. Usually, people have estimates of Gross Retail Sales, not Gross Retail Margin. Again, IMPLAN will estimate the level of employment associated with that level of sales in your industry in your area. If you have a known employment value that differs from IMPLAN's estimate, you should enter that value after entering the value of Gross Retail Sales. If you know only how many people will be employed by the store, but do not know its estimated sales, you can enter only the known employment and IMPLAN will estimate the output associated with that (in this case, IMPLAN will enter the amount of Gross Retail Margin associated with your known level of employment). Thanks.
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