Question

A) You are working in a local government using the Implan model to estimate the impact of a new electroplating facility (Industry 253) in the same metropolitan area you had on the last assignment. The facility will employ 250 workers. Set up an activity and run a simple scenario to generate results. Report the direct, indirect, induced and total employment effects of the new facility on the metro area economy.

B ) For your impact study, what are the five industries with the greatest indirect value added effects? What are the five industries with the greatest induced value added effects? (Use the detailed results table for this question.)

Answer 1

Direct employment- Direct employment refers to the employment, when the workers are hired for construction or installation. As the time goes on permanent position over maintenance, administration are established. Those are called direct employment. The people in this position are generally takes decision over producing goods and services, partnership with other companies etc.

Indirect Employment- Employee or the workers of the company such as accountants, security guard and other workers who are not directly linked to administering firms but helps in smooth running of firms. Actually it can generate job for the people and business will improve.

Induced Employment-When a firm or business is established in an area, local people will get a chance to boost their income opportunity, they can set up hotels, restaurants, stationary shops, and various types of hand made things, as the local economy will grow up.

Total Employment- When the services of restaurants, hotels and others will be easily available people will prefer to work there. For that as the local economy will grow up business will develop more.