Wyoming Nonprofit Network Sector Report - 10

For purposes of this analysis, UW's CBEA utilized IMPLAN: Economic Impact Analysis for Planning, which
provides an estimate of the overall economic impacts due to the sector's operations. For purposes of this
modeling, UW CBEA opted to use total expenses versus total number of employees as the input. They utilized
the default level of employment calculated by the economic impact software for the most precise results. The
default level of employment is calculated based on county and industry specific averages. We bring this to the
reader's attention since the Direct Jobs total in this section is lower than the workforce number highlighted
earlier in the report.
IMPLAN uses input-output methodology to track the ripple effects created in the regional economy due to
every initial dollar spent. For example, when a nonprofit organization purchases supplies from a local vendor,
that local vendor provides wages to its employees and makes purchases from other vendors. These other
vendors in turn provide wages to their employees and make purchases from other vendors and the cycle
continues. Additionally, when nonprofit employees spend their paychecks at local businesses, these local
businesses provide wages to their employees, make purchases from other vendors, and so forth. As a result, the
initial dollars spent will be circulated throughout the local economy several times. The impact of this initial
spending on the regional economy can be estimated using economic multipliers.
Source: University of Wyoming Center for Business and Economic Analysis report, p. 6
VARIABLE
Employment
Labor Income
Value Added
Output
DEFINITION
Employment refers to an industry-specific mix of full-time, part-time, and seasonal
jobs. Expressed as full-time equivalents (FTE).
Labor income refers to all forms of employment income, including employee
compensation (i.e., wages, salaries, and benefits) and proprietor income.
Value added is the difference between an industry's total output and the cost of its
intermediate inputs; it is a measure of the contribution to GDP.
Output is the value of production by industry in a calendar year. It can also be
described as annual revenues plus net inventory change. It is often referred to as total
economic impact
Multipliers
Multipliers describe how, for a given change in a particular industry, a resulting
change will occur in the overall economy. For instance, employment multipliers
describe the total jobs generated as a result of 1 job in the target industry.
Direct Effect
Economic impact directly through
employment and operations
Indirect Effect
Economic impact through
supply chain
Induced Effect
Economic impact through
local spending of income
STATEWIDE
JOBS
Direct
Indirect
Induced
Total
Multiplier
15,512
3,601
2,377
21,493
1.39
LABOR INCOME
$643,548,394
$146,638,085
$96,163,493
$886,349,972
1.38
VALUE ADDED
$643,548,394
$243,894,242
$196,129,788
$1,083,572,423
1.68
OUTPUT
$1,315,025,628
$543,137,278
$364,139,324
$2,222,302,228
1.69

Wyoming Nonprofit Network Sector Report

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