Finally, local construction workers will be hired to work on the project, and it is expected that 20,000 hours of labor will be needed for this project. This is a large change in the local demand for construction workers, and it drives the gross wage up from $15.00 per hour to $16.00/hr. As a result, half of the 20,000 hours hired for the project will come from supply expansion and half will come from demand displacement. In addition $2.00 of that amount is withheld for federal income taxes, and $1.00 is withheld for state income taxes.