City of Boroondara

Location quotient by industry

In 2019/20, Rental, Hiring and Real Estate Services was a major specialisation in the 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

Data source

National Economics (NIEIR) - Modelled series

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Location quotient
City of Boroondara - Employment (Total)2019/202014/15Change
Industry (Click rows to view sub-categories)%. Victoria%Location Quotient Victoria%. Victoria%Location Quotien Victoria2019/20 - 2014/15
Agriculture, Forestry and Fishing0.22.50.080.42.60.14-0.41
Mining0.30.40.690.10.40.28+1.44
Manufacturing2.89.00.313.19.20.33-0.06
Electricity, Gas, Water and Waste Services0.41.30.300.31.20.23+0.30
Construction7.39.40.787.28.50.85-0.08
Wholesale Trade3.33.70.892.93.80.76+0.17
Retail Trade12.29.91.2312.610.61.19+0.03
Accommodation and Food Services5.65.80.976.26.60.95+0.02
Transport, Postal and Warehousing2.65.20.493.15.00.61-0.19
Information Media and Telecommunications1.11.90.551.52.20.69-0.19
Financial and Insurance Services4.64.11.124.54.11.10+0.02
Rental, Hiring and Real Estate Services2.81.61.772.61.61.66+0.07
Professional, Scientific and Technical Services15.89.51.6714.78.21.78-0.06
Administrative and Support Services3.33.40.983.43.50.97+0.01
Public Administration and Safety2.65.50.462.45.30.45+0.02
Education and Training14.18.31.7114.58.81.66+0.03
Health Care and Social Assistance15.913.11.2115.012.41.21+0.00
Arts and Recreation Services1.51.90.791.62.10.76+0.03
Other Services3.73.61.033.83.71.02+0.00
Total Industries1001001.00100100+1.000

Source: National Institute of Economic and Industry Research (NIEIR) ©2021. Compiled and presented in economy.id by .id informed decisions. NIEIR-ID data are adjusted each year, using updated employment estimates. Each release may change previous years’ figures. Learn more

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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 the City of Boroondara in 2019/20 shows the three industries with the highest location quotient relative to Victoria were:

  • Rental, Hiring and Real Estate Services (1.8 )
  • Education and Training (1.7 )
  • Professional, Scientific and Technical Services (1.7 )

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

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

Emerging groups

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

The largest changes in the employment (total) LQ between 2014/15 and 2019/20 in the City of Boroondara were for these industries:

  • Mining (+1.4)
  • Agriculture, Forestry and Fishing (-0.4)
  • Electricity, Gas, Water and Waste Services (+0.3)
  • Information Media and Telecommunications (-0.2)

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