Hilltops Council areaEconomic profile
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Hilltops Council area

Location quotient by industry

In 2015/16, Agriculture, Forestry and Fishing was a major specialisation in Hilltops Council 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
Hilltops Council area - Employment (Total)2015/162010/11Change
Industry
(Click rows to view sub-categories)
%Regional NSW %Location Quotient (Regional NSW)%Regional NSW %Location Quotient (Regional NSW)2010/11 to 2015/16
Agriculture, Forestry and Fishing25.16.63.8223.16.63.50+0.09
Mining0.82.70.280.72.50.30-0.06
Manufacturing7.48.30.897.08.60.81+0.10
Electricity, Gas, Water and Waste Services1.31.70.761.41.60.86-0.12
Construction5.48.20.666.48.40.77-0.15
Wholesale Trade3.62.81.323.82.91.34-0.02
Retail Trade12.411.61.0612.711.71.09-0.02
Accommodation and Food Services5.28.10.645.48.10.67-0.04
Transport, Postal and Warehousing4.44.21.044.64.21.09-0.04
Information Media and Telecommunications0.70.90.750.71.00.69+0.10
Financial and Insurance Services1.81.90.931.92.10.94-0.01
Rental, Hiring and Real Estate Services0.91.50.590.91.50.58+0.02
Professional, Scientific and Technical Services2.54.20.602.74.50.600
Administrative and Support Services1.82.80.652.02.90.70-0.07
Public Administration and Safety4.56.30.704.76.50.72-0.02
Education and Training7.99.20.867.98.80.89-0.03
Health Care and Social Assistance9.913.20.749.712.70.77-0.03
Arts and Recreation Services0.71.30.570.71.30.54+0.06
Other Services3.74.40.853.74.20.87-0.03

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 Hilltops Council area relative to Regional NSW location quotient: 3.82 Mining for Hilltops Council area relative to Regional NSW location quotient: 0.28 Manufacturing for Hilltops Council area relative to Regional NSW location quotient: 0.89 Electricity, Gas, Water and Waste Services for Hilltops Council area relative to Regional NSW location quotient: 0.76 Construction for Hilltops Council area relative to Regional NSW location quotient: 0.66 Wholesale Trade for Hilltops Council area relative to Regional NSW location quotient: 1.32 Retail Trade for Hilltops Council area relative to Regional NSW location quotient: 1.06 Accommodation and Food Services for Hilltops Council area relative to Regional NSW location quotient: 0.64 Transport, Postal and Warehousing for Hilltops Council area relative to Regional NSW location quotient: 1.04 Information Media and Telecommunications for Hilltops Council area relative to Regional NSW location quotient: 0.75 Financial and Insurance Services for Hilltops Council area relative to Regional NSW location quotient: 0.93 Rental, Hiring and Real Estate Services for Hilltops Council area relative to Regional NSW location quotient: 0.59 Professional, Scientific and Technical Services for Hilltops Council area relative to Regional NSW location quotient: 0.60 Administrative and Support Services for Hilltops Council area relative to Regional NSW location quotient: 0.65 Public Administration and Safety for Hilltops Council area relative to Regional NSW location quotient: 0.70 Education and Training for Hilltops Council area relative to Regional NSW location quotient: 0.86 Health Care and Social Assistance for Hilltops Council area relative to Regional NSW location quotient: 0.74 Arts and Recreation Services for Hilltops Council area relative to Regional NSW location quotient: 0.57 Other Services for Hilltops Council area relative to Regional NSW location quotient: 0.85
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: +$0.1 million Mining, Change: -$0.1 million Manufacturing, Change: +$0.1 million Electricity, Gas, Water and Waste Services, Change: -$0.1 million Construction, Change: -$0.1 million Wholesale Trade, Change: 0 million Retail Trade, Change: 0 million Accommodation and Food Services, Change: 0 million Transport, Postal and Warehousing, Change: 0 million Information Media and Telecommunications, Change: +$0.1 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: -$0.1 million Public Administration and Safety, Change: 0 million Education and Training, Change: 0 million Health Care and Social Assistance, Change: 0 million Arts and Recreation Services, Change: +$0.1 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 Hilltops Council area in 2014/15 shows the three industries with the highest location quotient relative to Regional NSW were:

  • Agriculture, Forestry and Fishing (3.8)
  • Wholesale Trade (1.3)
  • Retail Trade (1.1)

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

  • Mining (0.3)
  • Arts and Recreation Services (0.6)
  • Rental, Hiring and Real Estate Services (0.6)

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 Hilltops Council area were for these industries:

  • Construction (-0.1)
  • Electricity, Gas, Water and Waste Services (-0.1)

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