Hi there I was wondering if it is possible to pull the indirect multipliers IMPLAN used for an industry change based on employment. I see that on the left hand side, there is an option to view multipliers. Could you explain what this is showing? I see you can toggle to employment, but when I try to apply the indirect multipliers listed to the number of direct jobs that were input, it doesn't work out to the indirect employment estimates I get as part of the results when I run it through the model. Essentially, I was wondering if it was possible to boil down to one direct job in XX sector has an indirect employment multiplier of XY. Also, when summarizing findings from IMPLAN, do you recommend presenting Value Added or Output? It is my understanding that Value Added is more conservative. Thank you, Julianne
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  • Hi Julianne! Thank you for your forum post. The Multiplier screen you are looking at in the Software, specifically the Employment Multipliers>Direct, Indirect, and Induced Effects, describe the jobs generated per million dollars of production. Thus the Indirect Effect Employment Multiplier- represents the number of jobs per $1,000,000 of Output that are generated by the business to business purchases and by all resultant rounds of local Industry purchases. You can calculate your own Multipliers based from the IMPLAN results. You can take the Total Employment Effects / Direct Employment Effects to get the Type SAM Employment Multiplier. Thus if an Employment Multiplier is 2.33, that means that every Direct Job creates 2.33 jobs in the total economy: the original job and 1.33 additional jobs. So if you are trying to check the Multiplier sheet you would take your Direct jobs multiply these jobs by the Type I reported Multiplier for that Sector and then subtract out the Direct jobs. Please note also that if you customized any fields in the Model the Multiplier Sheet may no longer match the the results of the customized Activity. General Information about Multipliers: http://support.implan.com/index.php?option=com_content&view=article&layout=edit&id=212 In regards to reporting Output or Value Added, Value Added is a more conservative value to understand why this is, these equations can be illustrative: Output = Intermediate Expenditures + Value Added Value Added = Employment Compensation+Proprietor Income+Other Property Type Income+Taxes on Production Thus Value Added is a subset of Output and does not contain the value of other local production consumed in the supply chain. We recommend reporting what you are most comfortable explaining and what you think that your audience will understand, often Value Added is an easy term to express as well as it is equivalent to GRP. I hope that this helps!
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