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Armidale Regional Council

Location quotient by industry

In 2014/15, Education and Training was a major specialisation in Armidale Regional Council in terms of Employment (Total).

The location quotient is a simple way of seeing which are the main industries in an area, relative to the wider region. LQ shows the percentage of the local economy characteristic (eg. employment, value add) in a particular industry divided by the percentage of the wider area (region, state, nation) that this industry makes up.

  • Where LQ=1, that industry is exactly as prevalent as in the wider region.
  • A LQ greater than 1.2 indicates a significant specialisation of the industry in the local area – possibly a key economic strength. Higher numbers mean greater specialisations. Anything over 2 is a major specialisation.
  • A LQ between 0.8 and 1.2 means the industry is broadly similar in importance in the local area compared to the comparison region and could be seen as representative.
  • An LQ under 0.8 indicates an industry which is more important in the region than the local area, and may represent an economic weakness or opportunity for growth.

LQs should be analysed in combination with the proportional economic share that industry represents. For example, an industry with an LQ of 2 reveals a specialisation but if that industry only represents 3% of the local economy, it may not be significant. Compare with the figures on the Employment, FTE, Value-add pages for this context.

National Economics (NIEIR) - Modelled series

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Location quotient
Armidale Regional Council - Employment (Total)2014/152009/10Change
Industry
(Click rows to view sub-categories)
%New South Wales %Location Quotient (New South Wales)%New South Wales %Location Quotient (New South Wales)2009/10 to 2014/15
Agriculture, Forestry and Fishing3.92.31.706.52.42.66-0.36
Mining0.60.90.630.70.90.80-0.22
Manufacturing3.07.50.402.48.80.28+0.45
Electricity, Gas, Water and Waste Services1.61.11.441.21.11.07+0.35
Construction5.88.40.697.68.40.91-0.24
Wholesale Trade2.14.60.463.34.60.71-0.36
Retail Trade15.010.41.4512.110.41.16+0.26
Accommodation and Food Services7.66.91.098.96.71.33-0.18
Transport, Postal and Warehousing2.05.10.401.85.20.35+0.13
Information Media and Telecommunications0.92.50.381.42.50.56-0.33
Financial and Insurance Services2.35.30.422.25.30.42+0.01
Rental, Hiring and Real Estate Services1.11.80.611.11.80.62-0.02
Professional, Scientific and Technical Services5.88.50.695.48.10.66+0.04
Administrative and Support Services5.13.41.503.13.30.94+0.60
Public Administration and Safety7.36.21.184.76.00.78+0.51
Education and Training18.68.12.3020.07.92.53-0.09
Health Care and Social Assistance12.211.51.0612.611.11.14-0.07
Arts and Recreation Services0.91.50.601.41.50.97-0.38
Other Services4.24.01.053.63.90.93+0.13

Source: National Institute of Economic and Industry Research (NIEIR) ©2016. Compiled and presented in economy.id by .id , the population experts.

Data is based on 2013-14 constant prices for all years. NIEIR data are inflation adjusted each year to allow direct comparison, and new data releases normally adjust previous years’ figures to a new base year.
Location quotient is the percentage of total in the area relative to the same percentage in the selected benchmark area.

Location quotient by industry sector 2014/15
Location quotient by industry sector 2014/15 Agriculture, Forestry and Fishing for Armidale Regional Council relative to New South Wales location quotient: 1.70 Mining for Armidale Regional Council relative to New South Wales location quotient: 0.63 Manufacturing for Armidale Regional Council relative to New South Wales location quotient: 0.40 Electricity, Gas, Water and Waste Services for Armidale Regional Council relative to New South Wales location quotient: 1.44 Construction for Armidale Regional Council relative to New South Wales location quotient: 0.69 Wholesale Trade for Armidale Regional Council relative to New South Wales location quotient: 0.46 Retail Trade for Armidale Regional Council relative to New South Wales location quotient: 1.45 Accommodation and Food Services for Armidale Regional Council relative to New South Wales location quotient: 1.09 Transport, Postal and Warehousing for Armidale Regional Council relative to New South Wales location quotient: 0.40 Information Media and Telecommunications for Armidale Regional Council relative to New South Wales location quotient: 0.38 Financial and Insurance Services for Armidale Regional Council relative to New South Wales location quotient: 0.42 Rental, Hiring and Real Estate Services for Armidale Regional Council relative to New South Wales location quotient: 0.61 Professional, Scientific and Technical Services for Armidale Regional Council relative to New South Wales location quotient: 0.69 Administrative and Support Services for Armidale Regional Council relative to New South Wales location quotient: 1.50 Public Administration and Safety for Armidale Regional Council relative to New South Wales location quotient: 1.18 Education and Training for Armidale Regional Council relative to New South Wales location quotient: 2.30 Health Care and Social Assistance for Armidale Regional Council relative to New South Wales location quotient: 1.06 Arts and Recreation Services for Armidale Regional Council relative to New South Wales location quotient: 0.60 Other Services for Armidale Regional Council relative to New South Wales location quotient: 1.05
Source: National Institute of Economic and Industry Research (NIEIR) ©2016
Compiled and presented in economy.id by .id the population experts
Change in LQ by industry sector, 2009/10 to 2014/15
Change in LQ by industry sector, 2009/10 to 2014/15 Agriculture, Forestry and Fishing, Change: -$0.4 million Mining, Change: -$0.2 million Manufacturing, Change: +$0.4 million Electricity, Gas, Water and Waste Services, Change: +$0.3 million Construction, Change: -$0.2 million Wholesale Trade, Change: -$0.4 million Retail Trade, Change: +$0.3 million Accommodation and Food Services, Change: -$0.2 million Transport, Postal and Warehousing, Change: +$0.1 million Information Media and Telecommunications, Change: -$0.3 million Financial and Insurance Services, Change: 0 million Rental, Hiring and Real Estate Services, Change: 0 million Professional, Scientific and Technical Services, Change: 0 million Administrative and Support Services, Change: +$0.6 million Public Administration and Safety, Change: +$0.5 million Education and Training, Change: -$0.1 million Health Care and Social Assistance, Change: -$0.1 million Arts and Recreation Services, Change: -$0.4 million Other Services, Change: +$0.1 million
Source: National Institute of Economic and Industry Research (NIEIR) ©2016
Compiled and presented in economy.id by .id the population experts

Dominant groups

A location quotient of greater than 1.2 is generally considered a level of industry specialisation, while a LQ of 0.8 or less indicates an industry which doesn’t have a major presence in the area.

An analysis of employment (Total) in Armidale Regional Council in 2014/15 shows the three industries with the highest location quotient relative to New South Wales were:

  • Education and Training (2.3)
  • Agriculture, Forestry and Fishing (1.7)
  • Administrative and Support Services (1.5)

The three industries with the lowest location quotient relative to New South Wales were:

  • Information Media and Telecommunications (0.4)
  • Transport, Postal and Warehousing (0.4)
  • Manufacturing (0.4)

Emerging groups

Changes in location quotients over time reveal emerging or declining industry specialisations.

The largest changes in the employment (Total) LQ between 2009/10 and 2014/15 in Armidale Regional Council were for these industries:

  • Administrative and Support Services (+0.6)
  • Public Administration and Safety (+0.5)
  • Manufacturing (+0.4)
  • Arts and Recreation Services (-0.4)

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