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City of Boroondara

Location quotient by industry

In 2015/16, Professional, Scientific and Technical Services was a major specialisation in City of Boroondara 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 by industry (Total), Employment by industry (FTE), Value added pages for this context.

National Economics (NIEIR) - Modelled series

Did you know? By clicking/tapping on a data row in the table you will be able to see sub categories.
Location quotient
City of Boroondara - Employment (Total)2015/162010/11Change
Industry
(Click rows to view sub-categories)
%Victoria %Location Quotient (Victoria)%Victoria %Location Quotient (Victoria)2010/11 to 2015/16
Agriculture, Forestry and Fishing0.32.20.110.22.30.07+0.74
Mining0.10.30.270.10.30.24+0.10
Manufacturing2.99.80.303.310.90.31-0.03
Electricity, Gas, Water and Waste Services0.11.20.100.21.10.16-0.38
Construction8.18.70.937.28.60.83+0.12
Wholesale Trade3.04.60.653.64.70.76-0.14
Retail Trade12.210.91.1212.710.71.18-0.05
Accommodation and Food Services5.96.30.945.56.10.91+0.03
Transport, Postal and Warehousing4.04.80.833.74.80.77+0.09
Information Media and Telecommunications1.82.10.842.02.10.91-0.07
Financial and Insurance Services5.14.41.165.54.41.25-0.07
Rental, Hiring and Real Estate Services2.21.51.452.21.51.51-0.04
Professional, Scientific and Technical Services15.48.41.8416.08.31.93-0.05
Administrative and Support Services3.03.50.853.13.40.90-0.06
Public Administration and Safety2.15.60.382.45.60.44-0.14
Education and Training13.58.41.6113.48.21.62-0.01
Health Care and Social Assistance14.311.71.2213.611.31.20+0.02
Arts and Recreation Services1.71.80.941.31.70.77+0.22
Other Services4.43.81.144.23.81.10+0.04

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 2015-16 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 2015/16
Location quotient by industry sector 2015/16 Agriculture, Forestry and Fishing for City of Boroondara relative to Victoria location quotient: 0.11 Mining for City of Boroondara relative to Victoria location quotient: 0.27 Manufacturing for City of Boroondara relative to Victoria location quotient: 0.30 Electricity, Gas, Water and Waste Services for City of Boroondara relative to Victoria location quotient: 0.10 Construction for City of Boroondara relative to Victoria location quotient: 0.93 Wholesale Trade for City of Boroondara relative to Victoria location quotient: 0.65 Retail Trade for City of Boroondara relative to Victoria location quotient: 1.12 Accommodation and Food Services for City of Boroondara relative to Victoria location quotient: 0.94 Transport, Postal and Warehousing for City of Boroondara relative to Victoria location quotient: 0.83 Information Media and Telecommunications for City of Boroondara relative to Victoria location quotient: 0.84 Financial and Insurance Services for City of Boroondara relative to Victoria location quotient: 1.16 Rental, Hiring and Real Estate Services for City of Boroondara relative to Victoria location quotient: 1.45 Professional, Scientific and Technical Services for City of Boroondara relative to Victoria location quotient: 1.84 Administrative and Support Services for City of Boroondara relative to Victoria location quotient: 0.85 Public Administration and Safety for City of Boroondara relative to Victoria location quotient: 0.38 Education and Training for City of Boroondara relative to Victoria location quotient: 1.61 Health Care and Social Assistance for City of Boroondara relative to Victoria location quotient: 1.22 Arts and Recreation Services for City of Boroondara relative to Victoria location quotient: 0.94 Other Services for City of Boroondara relative to Victoria location quotient: 1.14
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, 2010/11 to 2015/16
Change in LQ by industry sector, 2010/11 to 2015/16 Agriculture, Forestry and Fishing, Change: +$0.7 million Mining, Change: +$0.1 million Manufacturing, Change: 0 million Electricity, Gas, Water and Waste Services, Change: -$0.4 million Construction, Change: +$0.1 million Wholesale Trade, Change: -$0.1 million Retail Trade, Change: -$0.1 million Accommodation and Food Services, Change: 0 million Transport, Postal and Warehousing, Change: +$0.1 million Information Media and Telecommunications, Change: -$0.1 million Financial and Insurance Services, Change: -$0.1 million Rental, Hiring and Real Estate Services, Change: 0 million Professional, Scientific and Technical Services, Change: 0 million Administrative and Support Services, Change: -$0.1 million Public Administration and Safety, Change: -$0.1 million Education and Training, Change: 0 million Health Care and Social Assistance, Change: 0 million Arts and Recreation Services, Change: +$0.2 million Other Services, Change: 0 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 City of Boroondara in 2014/15 shows the three industries with the highest location quotient relative to Victoria were:

  • Professional, Scientific and Technical Services (1.8)
  • Education and Training (1.6)
  • Rental, Hiring and Real Estate Services (1.5)

The three industries with the lowest location quotient relative to Victoria were:

  • Electricity, Gas, Water and Waste Services (0.1)
  • Agriculture, Forestry and Fishing (0.1)
  • Mining (0.3)

Emerging groups

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

The largest changes in the employment (Total) LQ between 2010/11 and 2014/15 in City of Boroondara were for these industries:

  • Agriculture, Forestry and Fishing (+0.7)
  • Electricity, Gas, Water and Waste Services (-0.4)
  • Arts and Recreation Services (+0.2)
  • Public Administration and Safety (-0.1)

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