The employment multiplier effect of a new industry in a community

Includes bibliographical references (pages [46]-47)Purpose of Study The purpose of this study is to measure the changes in local employment resulting from the creation of 873 new jobs at the new Swift plant in Rochelle, Illinois. Specifically, this investigation seeks to measure the employment changes recorded in the following areas of the local economy: (1) wholesale and retail trade, (2) professional and related services, (3) business and personal services, (4) construction, (5) finance, insurance, and retail estate, (6) transportation, (7) public utilities, (8) manufacturing, and (9) other. The employment multiplier ratio is the term used to describe the relationship between the expansion of basic employment in a new plant and the resulting growth of secondary employment in the local economy. This investigation is limited to a one-year analysis from March 5, 1962, the first day of plant operation, through March 5, 19663. Methods and Procedures To minimize any misunderstanding in completing the questionnaire, the personal interview method was used to clarify or rephrase any question. This is an on-the-scene investigation; the writer personally distributed the questionnaire and helped the respondents by clarifying any point which was not clearly understood. A list of businesses and firms belonging to the Rochelle Chamber of Commerce was used as a guide in interviewing the businessmen of the community. After all of these members had been contacted, the writer approached and asked non-members businesses and firms to participate in this investigation. Those manufacturers whose product or service is sold in these markets other than the local market are delated from the study. This investigation seeks only to ascertain the employment effects of a new industry on local employment. The two-page questionnaire is subdivided into an identification and employment sections. The first section seeks such information as the name of the firm, address, year of establishment, and other basic information for this type of investigation. The second section deals with the heart of this investigation; i.e. the changes in secondary employment in the community.M.S. (Master of Science