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How to Effectively Estimate Job Creation

September 30th, 2010

job-creation-presidents.jpgEstimating job creation requires looking at a variety of statistics and resources. The Recovery Act of 2009 is a good resource to help determine the different categories used to describe jobs. The best resources you can start with are government agencies that work to collect data on the economy. For example, the U.S. Bureau of Labor Statistics can provide statistics that are indicators of the health of the economy from the past and the present.

Data Collection Process - Step 1

Refer to The Recovery Act of 2009 to see the typical categories used to do job creation estimates. For example, the website indicates three types of jobs that are possible to obtain to determine job creation. First, direct jobs are the job-years created by the government-sponsored project. Indirect jobs include job-years created by suppliers who make the materials benefiting the project. Induced jobs are job-years established elsewhere within the economy due to government spending in projects that extends to the private sector that in turn hires.

Step 2

Review the statistics from the U.S. Bureau of Labor Statistics website. They evaluate information based on survey results taken from government databases, like the Census. Look at the Unemployment Rate and Consumer Price Index to help determine the health of the economy. Look at historical statistics to help determine future job creation as well. These government statistics can help you estimate when jobs will be established based on historical trends and current conditions.

Step 3

Watch TV news reports that cover job creation. Usually, you can refer to business oriented networks for the most specific details to better estimate job creation. Also, this strategy can provide local, national and global perspectives. Best of all, the reporters may compute job projection with charts and interviews from experts that study job creation.

Step 4

Subscribe to industry journals that cover jobs. Questia is a trusted online resource library that compiles strategic lists of valuable research pertaining to job creation. There are industry reports, journals and more to help you estimate job creation. There is a free trial to take advantage of full publications as well. Reading the Wall Street Journal and the Economist are other quality alternatives.

Estimation Process - Step 1

Gather the statistics from the government and news media. You should determine how the amount of years will be separated (i.e., decades). Create a spreadsheet (i.e., Excel) to categorize and sort the data.

Step 2

Use the built-in software to handle the math. You will need to take the percentages (i.e., 50,000 jobs) that were collected in the previous section by your resources to calculate an average for projection.

Step 3

Take the number of total number of depressed years and look at job creation numbers now. Then compare it with the total number of prosperous years. Find the difference by subtracting the current and historical job creation numbers. You may choose to employ the use of probability by seeing how many jobs must be created to remain consistent with the economic climate. The probability function can be found by searching for functions on spreadsheet software.

Step 4

You will divide the number of jobs created (i.e., thousands per year) according to the sources (i.e., 500,000) by the number of years it takes during prosperous years (i.e., 10 years) verses the depressed years (i.e.,10 years). You can now estimate job creation over the years based on historical figures using the software to help organize the data.

In conclusion, effectively estimating job creation is not an exact science. However, it provides a guideline to follow when implementing an educated guess about when you can anticipate new jobs entering the marketplace. Using the historical data and looking at current funding are the best resources when forming figures for America’s outlook.


This article was supplied by “SavvyOne” from Constant Content.


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