Jobs
Economic impact report
Also called job study, economic report, job creation study, economic impact analysis.
An economic impact report is the economist's analysis that turns a project's spending, revenues or direct hiring into an estimated job total, and the project application a regional center files for each investment offering must include one. The statute and USCIS call it a credible economic analysis.
What it decides
8 U.S.C. 1153(b)(5)(F)(i)(II) requires the project application, Form I-956F, to include a credible economic analysis regarding estimated job creation based upon economically and statistically valid and transparent methodologies. The Policy Manual section on project applications, 6 USCIS-PM G.5(B)(3), repeats that sentence and adds nothing to it. USCIS sets out how it tests a model in two other places: at 6 USCIS-PM G.2(D)(5) and 6 USCIS-PM G.7(B) it asks separately whether the direct jobs input, the expenditures input and the revenues input are each reasonable and lists the records that support each, and G.2(D)(5) further asks whether the multipliers and the assumptions about the project's geographic impact are reasonable, weighing the area's demographic structure, its contribution to the project's supply chains and its socioeconomic connectivity. Both passages sit outside the project application chapter, G.2(D)(5) under a heading for regional center petitions filed before 1 July 2021 and G.7(B) under Form I-829, and USCIS has not rewritten either for Form I-956F. Reading the inputs the economist was handed therefore tells an investor more than the job total the model returned.
Where this is explained properly
Pages here that go into economic impact report rather than mentioning it.
Related terms
- Input-output modelAn input-output model is an accounting framework of interindustry purchases that estimates how spending on a project spreads into output and jobs across a regional economy. In EB-5 it is the standard way a regional center investor shows job creation, and it produces estimated jobs rather than a verified headcount.
- MultiplierA multiplier is the ratio an input-output model applies to an initial change in a project's spending, earnings or jobs to estimate the total change in output, value added, earnings or jobs in a chosen industry and region.
- Expenditure modelAn expenditure model estimates EB-5 job creation by feeding a project's spending into an economic input-output model, rather than feeding it the project's projected revenues or a verified count of direct hires. USCIS does not use the label itself, but it recognizes expenditures as one of the input types an investor may rely on and requires the investor to show that the expenditure figures are reasonable.
- NAICS codeA NAICS code is the North American Industry Classification System identifier for an industry, six digits at its most detailed level, and in EB-5 it fixes which input-output multipliers a job study applies to a project's spending and revenue.
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