Understanding Economic Impact Studies and Job Data in Idaho
Dive into the Idaho SBDC's 2020 Economic Impact Study, focusing on the tools and methodologies used to measure impact, the keys to understanding the study including direct, indirect, and induced effects, and the specific job data in Idaho for 2020. Discover how economic models like IMPLAN and Input-Output Analysis help analyze the contributions of retained and created jobs to the local economy in terms of employment, income, value added, total output, and tax revenues.
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Presentation Transcript
Idaho SBDC Idaho SBDC 2020 Economic 2020 Economic Impact Study Impact Study All Staff Weekly Standup May 10, 2022 By Deanna Berry
Tool for Measuring Impact, slide 1 of 2 The Basics IMPLAN is the leading provider of economic impact data and analytical applications. IMPLAN serves the economic data needs of researchers, policy makers, decision makers, advocates, business leaders, governments, and more. The History IMPLAN was created by academics to serve the needs of the United States Forest Service in the 1970 s. It has been transformed today to serve as a solution- provider for anyone interested in better understanding their economy. IMPLAN is a regional economic analysis software and data application that is designed to estimate the impact or ripple effect of a given economic activity or the contribution of some existing activity within a specific geographic area. 3
Tool for Measuring Impact, slide 2 of 2 The Method IMPLAN utilizes an economic modeling technique called Input-Output analysis, which is a type of applied economic analysis that tracks the interdependence among various producing and consuming industries of an economy. It measures the relationship between a given set of demands for final goods and services and the inputs required to satisfy those demands. The Standard IMPLAN has been a standard tool for academic and professional economists for decades. The methods used to produce IMPLAN s economic data set and economic impact estimates have been widely published both in professional publications as well as peer-reviewed academic journals. Many of these methods are considered standard best practices in a wide variety of applied economic fields today. 4
Keys to understanding the study Direct, Indirect, Induced captures the ripples through the economy Input-Output Analysis calculates the multiplier effect for the ripples ROI - Return on Investment identifies specific stakeholders 5
Idaho SBDC 2020 Jobs Data Idaho SBDC 2020 Jobs Data by using jobs created and retained, and using regional, industry averages for value added and employees compensation, it was possible to obtain a reasonable estimate of the contribution the retained and created jobs added to the local economy in terms of employment, labor income, value added, total output, and tax revenues. Jobs Created 596 + Jobs Retained 2,630 = Direct Impact 3,226 Jobs data by industry was used in the Economic Impact calculations. 6
Direct, Indirect & Induced - Donut Shop jobs Ripple Effect 7
Input-Output Analysis, Multiplier Effect Input-Output Analysis: A type of applied economic analysis that tracks the interdependence among various producing and consuming sectors of an economy. More particularly, it measures the relationship between a given set of demands for final goods and services and the inputs required to satisfy those demands. 8
Idaho SBDC 2020 Economic Impact Jobs Created 596 + Jobs Retained 2,630 = Direct Impact (Employment) 3,226 Plus Idaho SBDC personnel costs. Input-Output Method Multiplier Effect Ripple Effect 9
2020 Federal tax revenue generated by State of Idaho Impact 12
Idaho SBDC 2020 IMPACT Idaho SBDC 2020 IMPACT 3,226 3,226 jobs created and retained $774M $774M Total Output $17M $17M Idaho tax revenue 5,412 5,412 jobs 13
