Macarthur Regional Organisation of CouncilsEconomic profile
Skip to content

Macarthur Region

Location quotient by industry

In 2015/16, Mining was a major specialisation in Macarthur Region 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
Macarthur Region - Employment (Total)2015/162010/11Change
Industry
(Click rows to view sub-categories)
%New South Wales %Location Quotient (New South Wales)%New South Wales %Location Quotient (New South Wales)2010/11 to 2015/16
Agriculture, Forestry and Fishing2.02.30.901.52.30.63+0.42
Mining2.41.02.512.50.92.70-0.07
Manufacturing12.77.91.6113.88.51.620
Electricity, Gas, Water and Waste Services1.41.21.191.01.20.89+0.34
Construction8.67.61.138.47.61.11+0.02
Wholesale Trade4.34.50.954.04.60.87+0.09
Retail Trade13.010.31.2613.110.31.27-0.01
Accommodation and Food Services6.77.00.967.36.81.07-0.11
Transport, Postal and Warehousing5.15.10.995.25.21.01-0.02
Information Media and Telecommunications0.62.50.250.72.50.29-0.12
Financial and Insurance Services1.25.30.231.55.30.28-0.16
Rental, Hiring and Real Estate Services1.61.80.911.81.81.01-0.10
Professional, Scientific and Technical Services3.38.50.383.78.40.44-0.14
Administrative and Support Services2.43.50.682.63.40.75-0.10
Public Administration and Safety4.16.30.654.66.30.74-0.12
Education and Training11.78.21.4311.28.11.39+0.03
Health Care and Social Assistance13.411.51.1711.411.31.01+0.16
Arts and Recreation Services1.31.50.821.31.50.85-0.03
Other Services4.24.01.064.34.01.08-0.03

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 2014-15 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 Macarthur Region relative to New South Wales location quotient: 0.90 Mining for Macarthur Region relative to New South Wales location quotient: 2.51 Manufacturing for Macarthur Region relative to New South Wales location quotient: 1.61 Electricity, Gas, Water and Waste Services for Macarthur Region relative to New South Wales location quotient: 1.19 Construction for Macarthur Region relative to New South Wales location quotient: 1.13 Wholesale Trade for Macarthur Region relative to New South Wales location quotient: 0.95 Retail Trade for Macarthur Region relative to New South Wales location quotient: 1.26 Accommodation and Food Services for Macarthur Region relative to New South Wales location quotient: 0.96 Transport, Postal and Warehousing for Macarthur Region relative to New South Wales location quotient: 0.99 Information Media and Telecommunications for Macarthur Region relative to New South Wales location quotient: 0.25 Financial and Insurance Services for Macarthur Region relative to New South Wales location quotient: 0.23 Rental, Hiring and Real Estate Services for Macarthur Region relative to New South Wales location quotient: 0.91 Professional, Scientific and Technical Services for Macarthur Region relative to New South Wales location quotient: 0.38 Administrative and Support Services for Macarthur Region relative to New South Wales location quotient: 0.68 Public Administration and Safety for Macarthur Region relative to New South Wales location quotient: 0.65 Education and Training for Macarthur Region relative to New South Wales location quotient: 1.43 Health Care and Social Assistance for Macarthur Region relative to New South Wales location quotient: 1.17 Arts and Recreation Services for Macarthur Region relative to New South Wales location quotient: 0.82 Other Services for Macarthur Region relative to New South Wales location quotient: 1.06
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: 0.42 Mining, Change: -0.07 Manufacturing, Change: 0 Electricity, Gas, Water and Waste Services, Change: 0.34 Construction, Change: 0.02 Wholesale Trade, Change: 0.09 Retail Trade, Change: -0.01 Accommodation and Food Services, Change: -0.11 Transport, Postal and Warehousing, Change: -0.02 Information Media and Telecommunications, Change: -0.12 Financial and Insurance Services, Change: -0.16 Rental, Hiring and Real Estate Services, Change: -0.10 Professional, Scientific and Technical Services, Change: -0.14 Administrative and Support Services, Change: -0.10 Public Administration and Safety, Change: -0.12 Education and Training, Change: 0.03 Health Care and Social Assistance, Change: 0.16 Arts and Recreation Services, Change: -0.03 Other Services, Change: -0.03
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 Macarthur Region in 2015/16 shows the three industries with the highest location quotient relative to New South Wales were:

  • Mining (2.5)
  • Manufacturing (1.6)
  • Education and Training (1.4)

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

  • Financial and Insurance Services (0.2)
  • Information Media and Telecommunications (0.3)
  • Professional, Scientific and Technical Services (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 2010/11 and 2015/16 in Macarthur Region were for these industries:

  • Agriculture, Forestry and Fishing (+0.4)
  • Electricity, Gas, Water and Waste Services (+0.3)
  • Financial and Insurance Services (-0.2)
  • Health Care and Social Assistance (+0.2)

v17.12.12-1.0.0