Multiplication effect on the region’s economy explored

Press Release

The Northern Policy Institute’s latest report, entitled “Income and Employment Multipliers for 20 Industries in 11 Census Divisions in Northern Ontario,” by author Dr. B. Moazzami, provides accurate and reliable estimates of income and employment multipliers.
Along with this report, NPI is launching a new online Economic Impact Calculator, allowing any district to know what the effects of investment in a certain sector will have as an impact to their area through income and employment multipliers.
Decision-makers in both the private and public sector often are interested in the economic impact, or the contribution to the local economy of certain local companies, their current operations, or investment projects.
Multiplier numbers set out to determine how much of an initial investment will remain in the community and how much it will generate overall in the community.
The commentary focuses on two multipliers: income and employment. The income multiplier demonstrates how an investment towards a company will affect the total amount of spending and income on the local economy.
The employment multiplier, meanwhile, shows how much more employment opportunities are created by an initial investment.
Private- and public-sector investment in a local economy will have different impacts based upon the industry or sector, the strength of regional interindustry linkages, as well as the expenditure habits of consumers in the region.
The estimates provided in this report are the first set of such estimates produced for Northern Ontario regions.
To estimate various multipliers, the author incorporated the detailed industry structure in each region, the detailed consumer expenditure patterns in each region, and the average level of wages and income by detailed industry in various regions.
The paper found that in Northern Ontario, the greatest income multipliers are retail, professional, scientific, and technical services, as well as the arts, entertainment, and recreation industries.
The greatest employment multiplier in the northeast are mining, utilities, and professional scientific and technical services.
In addition to this report, NPI is introducing a one-of-a-kind investment calculator tool.
“The online Economic Impact Calculator will make it easier for communities to evaluate and assess their current situation and through using income and employment multipliers, will be able to evaluate the impact of sector specific investments on the community” noted NPI president and CEO Charles Cirtwill.
To view and use the online Economic Impact Calculator, visit
You can read the full report, “Income and Employment Multipliers for 20 Industries in 11 Census Divisions in Northern Ontario,” at