Iowa Association for Financial Choice

IHS Global Insight Study

IHS Global Insight Study on the Economic Impact of Delayed Deposit Industry

IHS Global Insight conducted a comprehensive study analyzing the economic impact of the delayed deposit industry nationally and in states with storefront locations. Findings illustrate “measurable and significant” economic benefits to local economies directly through employment, compensation and taxes, as well as through indirect and induced relationships with suppliers and other industries.

Key Findings:

– In addition to being a valuable source of credit for many consumers, the delayed deposit industry makes significant contributions to U.S. and state economies.
– The industry contributed over $10 billion to the U.S. gross domestic product (GDP) in 2007.
– The delayed deposit industry supports over 155,000 jobs nationally¹, including 77,088 people directly employed in 23,586 jobs in storefront locations.²
– Overall, the total labor income impact from the delayed deposit industry is $6.4 billion:
– Through direct employment, delayed deposit stores contributed $2.9 billion in labor income, which translated to approximately $37,689 per store employee.³
– Suppliers to the delayed deposit industry contributed $1.4 billion in labor income as an indirect result of the revenues generated by the delayed deposit industry.
– $2.1 billion was generated from the wages of delayed deposit store employees and supplier indutries’ employees as they were spent in local economies.
– The delayed deposit industry helped to generate over $2.6 billion in federal, state and local taxes in 2007.

Download the one-page handout of this survey as well as state-by-state information.

Footnotes:
1. Includes jobs in industries supplying input goods to the delayed deposit industry as well as jobs sustained due to the spending of wages in local economies by delayed deposit employees.
2. Direct employment includes only store employees and not those employed in corporate headquarters or parent organizations.
3. Labor income includes other benefits besides wages, such as employer paid health insurance benefits, and employer contributions to Social Security, Medicare and 401K plans.

 
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