Employment Effects of State/Private Sectors

What you can see below are the unemployment effect tables of state/private sectors.

(nominal) Private State
Energy 0-(0.09*x) 0-(0.03*x)
Healthcare 0-(0.07*x) 0.02-(0.34*x)
Rail 0-(0.09*x) 0.01-(0.12*x)
Schools 0-(0.13*x) 0-(0.39*x)
Telecoms 0-(0.09*x) 0.01-(0.03*x)
Water 0-(0.09*x) 0-(0.01*x)
(expected) Private State
Energy -0.0495 0-(0.03*x)
Healthcare -0.063 0.02-(0.34*x)
Rail -0.0495 0.01-(0.12*x)
Schools -0.117 0-(0.39*x)
Telecoms -0.0585 0.01-(0.03*x)
Water -0.0495 0-(0.01*x)

Related Dev Post: Improving accuracy of state employee & unemployment effects

I think whether an industry is run by state or private corporations shouldn’t make such drastic difference in employment. There will be some differences for sure. But there needs to be a limit.

I assume that Cliff did some unemployment effects adjustments in 2021 May but no changes has been made on private sectors since then. While I can’t understand how these values were chosen, I’m pretty okay with reference data and find them still better than not having any basis. I don’t even believe that State Energy/Telecoms/Water corporations should be better at creating jobs. It will differ by sectors or circumstances. But nationalizing/privatizing shouldn’t triple or quadruple employment imo. It’s a matter of immersion.

1 Like

This is in line with topics I’ve brought up in the past. Democracy 4 vastly underestimates the hiring of the private sector. Even when I have a maxed out GDP it barley dents the unemployment rate. The same seems to be true for the industries.

+a thing to add

While State Energy/Housing/Pensions/Rail/Schools/Telecoms/Water do contribute to less poverty, State Healthcare does not. I guess at least lack of state healthcare will severely damage financial situations of the poor households but there isn’t any link to poverty from state/private healthcare.

Higher default value for Poverty and a new link from State Healthcare to Poverty will fix this if you ask me.

Very interesting. I will make a note to revisit this when I am next balancing stats and equations in the game. I do recall a lot of very laborious researching of the employment of various energy companies at one point, but it might be simple error in terms of me applying the correct data to private companies and not public ones.
Its also complicated by the impact of secondary employment effects, such as all the auto workers who are building vans used by electricity firms and so on…

1 Like

I’m adding a link between state health care and poverty rates. I’m setting it to 8%, same as energy, despite the lower cost of state energy, as I think at a higher level of funding, state healthcare is providing a service that those on low incomes would not have purchased from the private sector otherwise.

Whereas… with state energy, people’s energy consumption tends to be more fixed, so lower costs brought about by implicit subsidies to a highly funded state energy sector would feed directly through to a reduced poverty rate throughout the different funding levels.

1 Like