United States Department of Transportation
i
Employment Impact Analysis for Highway Operations
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2003-07-18
[PDF-312.86 KB]
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Abstract:In national and state legislative debates, job creation is one of the major arguments made for highway investments. Models have been developed to estimate the number of jobs created by spending on highway construction. In contrast, highway operations have received far less attention, although operations and maintenance have become relatively more important than construction since the interstate system has been largely completed, and the number of jobs, by type of skill and income level, created by spending in highway operations is very likely to differ significantly from jobs created by new construction. A new model is therefore needed to incorporate distinctive features of highway operations and to provide policymakers with specific information on highway operations. The research presented in this report aims to develop such a model. At the core is the Transportation Satellite Accounts, an input-output model extended to provide more details on transportation. A wide variety of source data were analyzed to develop the spending structure and the average employee compensation for major categories of highway operation activities. The total employment impact estimated includes the direct hire of highway operations and the direct and indirect employment impact of the purchases of commodities and services for highway operations. In 2000, the expenditure on highway operations accounted for more than 15 percent of the total expenditure on state-administered highways and generated a total of 184,854 full-time job equivalents, or 17,810 jobs per billion dollars spending on average. In terms of the number of jobs, traffic supervision, toll collection, and snow and ice removal are the three largest job-creating activities of highway operations. They account for about 65 percent of the total jobs created by highway operations.
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