# Direct Impact Results Question

I'm running an impact analysis for a construction project in San Luis Obispo County, using several construction categories. I'm confused by the direct results for employee compensation. For example, I ran an analysis for sector 55 - Construction of new commercial structures, including farm structures - using and Industry Output value of \$24,736,688. Model year 2019, dollar value year 2022. The direct employee estimate of 180.53 seems correct given the industry average for this county. However, direct employee compensation of \$9,007,892.96 appears to be too low. According to the industry average for sector 55 for this County, average employee compensation is about \$70,000 per worker.

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• Official comment

Hello Alan!

So the Direct Employment value you are denoting (180.53), includes both Wage & Salary Employees as well as proprietors. Wage & Salary Employees earn Employee Compensation, while the Proprietors earn Proprietor Income. So the difference you are noticing is due to the presence of the Proprietors in the Total Employment value, but unfortunately there is no direct way to see in the Results how many employees were proprietors vs how many were W&S.

However, what we can do is use the underlying Industry averages to help us back them out, but remember that these averages utilize the 2019 Dollar Year. Dividing the Direct Employee Compensation value of \$8,495,992.68 (viewing Results in 2019 Dollar Year for an apples to apple comparison) by the average EC earned by W&S workers (Industry 55 in San Luis Obispo County 2019) of \$69,969.49, we would get an Wage & Salary Employment of 121.42. Then, we take the Direct Proprietor Income value of \$5,850,950.19 from our Results, divided by the average Proprietor Income per Proprietor of \$98,995.99, we get Proprietor Employment of 59.10. Give or take some rounding here, that would give us the breakout of Wage & Salary Employees vs Proprietor Employees for that 180.53 total Direct Employment value.

Hope this helps!

Michael Nealy