Developing East Arnhem LimitedEconomic profile

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Developing East Arnhem Limited area

Location quotient by industry

In 2015/16, Manufacturing was a major specialisation in Developing East Arnhem Limited area 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

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Location quotient
Developing East Arnhem Limited area - Employment (Total)2015/162010/11Change
Industry
(Click rows to view sub-categories)
%Northern Territory %Location Quotient (Northern Territory)%Northern Territory %Location Quotient (Northern Territory)2010/11 to 2015/16
Agriculture, Forestry and Fishing0.82.00.392.02.00.97-0.60
Mining8.03.02.639.23.03.07-0.14
Manufacturing9.91.95.3014.34.13.52+0.51
Electricity, Gas, Water and Waste Services0.31.20.280.41.10.33-0.15
Construction13.99.11.5311.28.51.32+0.16
Wholesale Trade0.52.10.230.42.10.17+0.35
Retail Trade6.07.60.795.27.60.68+0.17
Accommodation and Food Services5.76.60.875.96.50.92-0.06
Transport, Postal and Warehousing3.04.90.612.64.80.54+0.13
Information Media and Telecommunications0.31.10.300.21.10.20+0.49
Financial and Insurance Services0.41.30.330.41.30.31+0.08
Rental, Hiring and Real Estate Services0.61.60.380.41.60.27+0.42
Professional, Scientific and Technical Services1.85.30.331.95.20.37-0.12
Administrative and Support Services2.93.20.912.73.10.87+0.05
Public Administration and Safety13.022.00.5913.921.70.64-0.08
Education and Training12.19.31.3010.39.01.14+0.14
Health Care and Social Assistance9.710.40.939.610.20.94-0.01
Arts and Recreation Services1.62.40.661.52.30.65+0.01
Other Services9.55.01.917.94.71.67+0.14

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 Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.39 Mining for Developing East Arnhem Limited area relative to Northern Territory location quotient: 2.63 Manufacturing for Developing East Arnhem Limited area relative to Northern Territory location quotient: 5.30 Electricity, Gas, Water and Waste Services for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.28 Construction for Developing East Arnhem Limited area relative to Northern Territory location quotient: 1.53 Wholesale Trade for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.23 Retail Trade for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.79 Accommodation and Food Services for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.87 Transport, Postal and Warehousing for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.61 Information Media and Telecommunications for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.30 Financial and Insurance Services for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.33 Rental, Hiring and Real Estate Services for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.38 Professional, Scientific and Technical Services for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.33 Administrative and Support Services for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.91 Public Administration and Safety for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.59 Education and Training for Developing East Arnhem Limited area relative to Northern Territory location quotient: 1.30 Health Care and Social Assistance for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.93 Arts and Recreation Services for Developing East Arnhem Limited area relative to Northern Territory location quotient: 0.66 Other Services for Developing East Arnhem Limited area relative to Northern Territory location quotient: 1.91
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: -$0.6 million Mining, Change: -$0.1 million Manufacturing, Change: +$0.5 million Electricity, Gas, Water and Waste Services, Change: -$0.2 million Construction, Change: +$0.2 million Wholesale Trade, Change: +$0.4 million Retail Trade, Change: +$0.2 million Accommodation and Food Services, Change: -$0.1 million Transport, Postal and Warehousing, Change: +$0.1 million Information Media and Telecommunications, Change: +$0.5 million Financial and Insurance Services, Change: +$0.1 million Rental, Hiring and Real Estate Services, Change: +$0.4 million Professional, Scientific and Technical Services, Change: -$0.1 million Administrative and Support Services, Change: +$0.1 million Public Administration and Safety, Change: -$0.1 million Education and Training, Change: +$0.1 million Health Care and Social Assistance, Change: 0 million Arts and Recreation Services, Change: 0 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 Developing East Arnhem Limited area in 2014/15 shows the three industries with the highest location quotient relative to Northern Territory were:

  • Manufacturing (5.3)
  • Mining (2.6)
  • Other Services (1.9)

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

  • Wholesale Trade (0.2)
  • Electricity, Gas, Water and Waste Services (0.3)
  • Information Media and Telecommunications (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 Developing East Arnhem Limited area were for these industries:

  • Agriculture, Forestry and Fishing (-0.6)
  • Manufacturing (+0.5)
  • Information Media and Telecommunications (+0.5)
  • Rental, Hiring and Real Estate Services (+0.4)

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