Indirect Multipliers


1 comment

  • Avatar
    IMPLAN Support
    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: 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!
    Comment actions Permalink

Please sign in to leave a comment.