The Effects of Final Demand Components on Employments of Economic Sectors

The input - output framework is applied in this study to analyse the
change, in the use of labor input. On the basis of input-output tables
sectors of the economy are specified according to the degree of their
interdependences. Backward and forward employment linkages can he
calculated. The sectors then are classified according to their total (direct
and indirect) employment linkages. Through application of the
input-output model to the Iranian economy, it was found that the food
industry had the largest indirect employment linkages in the years 1365
and 1370.
In the study of the relationship between final demand components and
the sectoral and occputionallabor requirement s, it was found that
government consumer spending had the largest impact on total
employment, as well as on the higher educated lahor. One billion rials
worth of expenditures on the government consumption generated 1000 and 427 jobs in 1365 and 1370, respectively which is more than the impact of an equal increases on either the private household comsumption, the private fixed capital formation or export . The employment of higher
educated people was more dependent on government consumption tha
on any other components. In comparison the, domestic absorbtion had a
larger impact on employment in Iranian economy than the export