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What happens to employment if exports change? Try this interactive tool to simulate the effects of demand changes on jobs. Tool based on the Social Accounting Matrices.
What happens to employment if exports change?
You can interact with this tool to simulate changes of exports for products or services while dynamic charts will show you real-time the impact on employment in the different fields of the economics. This simulator is released for all EU Member States, the UK, and EU as an aggregate.
The tool is not a crystal ball!
Please do NOT interpret results as an accurate forecast of job creation! Please take results as an indication of the different potential that commodities have in the employment in the different sectors.
Mechanism - main theoretical concepts
The tool allows to simulate exogenous shocks in the final demand for the selected commodities, and the jobs generated are the sum of direct, indirect and induced effects (calculated after infinite feedbacks).
Shocks can be introduced in several sectors at the same time. The results show both the variation in jobs for each of the sectors of activity concerned and the aggregate variation (total jobs, jobs in the main productive sector of the commodity, jobs in the other sectors).
The tool is a practical application of the scientific studies that calculated the "Social Accounting Matrices" (SAMs).
The calculations are based on the assumption that external trade, investment and public expenditure are exogenous (not model-dependent), therefore the demand shock may refer to either of these variables (although the shock in percentage term is performed, for sake of simplicity, only as a reference to current exports).
The results are subject to several assumptions such as: constant prices and fixed technology production functions (Leontief type) and do not take into account variations or changes in other socio-economic variables.
This is why results should never be interpreted as accurate forecasts of job creation, but rather as indication of which commodities have the highest employment potential and in which sectors.
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