How to Model Job Loss Scenario

Hello , If your job loss occurs without any change or interruption in production then it would be appropriate to look at an Activity Type other than an Industry Change; however, if there is a change in production associated to the jobs loss, the most appropriate Activity Type would be Industry Change as this will capture the Value Added loss both associated to the decreased labor dollars and the decrease in purchases of Intermediate Expenditures used for production. If production is uninterrupted and you have job losses, if you are working with a value of labor payment loss (that is a fully loaded payroll loss that includes the value of the employee/employer taxes and benefits) you would want to use the Labor Income Change Activity. Household Income Change Activity would be if you were starting with a value that already had payroll taxes and benefits removed, but still included savings and income taxes. Thus the correct Activity Type depends on what type of economic change you are describing and what your starting value represents. Please let us know if you need any additional help or have more questions.