Our clients often ask us to explain the term “induced” as it relates to an economic impact study. This article on tech layoffs from Mish Talk perfectly illustrates induced impacts. As companies like Amazon and Microsoft have laid off tens of thousands of employees in the Seattle area over recent years, the impacts are being felt in the surrounding restaurant and retailing industry. Transactions have dropped by as much as 7%, and 450 restaurants have closed in first quarter 2025 alone. The re-spending of wages by direct and indirect employees of any given industry or company have significant impacts on the local business community and are an important data point to highlight in an economic impact study. https://mishtalk.com/economics/seattle-reeling-over-tech-layoffs-especially-microsoft/
