Does new employment create new income?

Hi, When increased industry output creates new jobs is this considered to also be creating new income and household spending in the economy or does this have to be modeled separately? For example, the output table expresses change in employment and change in labor income. Is the change in labor income due to the change in employment or are these separate? On a state level analysis is it possible to say some of the new employment created came from out of state so is new? Thanks
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  • Hello, This is up to your interpretation. If you feel that your impact is bringing in completely new business that has not previously existed, then you could argue that the impact is creating "new" jobs. Your statement, "Increased Industry Output" implies that the Industry currently exists which could be argued that the impacts you will see in IMPLAN are more likely supported rather than created. However, the labor impacts associated to that Employment are captured in the Industry Change Activity type. The Direct Labor Income is part of that impact and the Induced Effects are the result of labor spending from all rounds of the impact. One other caveat, the complete value of income is only 'new' if the workers are completely new to the area (i.e. they weren't previously earning income in another job within the Study Area). If the workers are changing positions, their 'new' income is net their 'current' income. Since this can be very hard to determine, we typically recommend using the term supported.
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