City of Brisbane

Location quotient by industry

In 2021/22, Financial and Insurance Services was a major specialisation in the City of Brisbane 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 Brisbane - Employment (Total)2021/222016/17Change
Industry (Click rows to view sub-categories)%. Queensland%Location Quotient Queensland%. Queensland%Location Quotien Queensland2021/22 - 2016/17
Agriculture, Forestry and Fishing0.32.50.110.32.70.12-0.10
Mining1.62.70.591.42.60.55+0.06
Manufacturing6.56.60.986.76.80.99-0.01
Electricity, Gas, Water and Waste Services1.41.31.081.21.21.04+0.03
Construction7.19.20.788.09.60.84-0.07
Wholesale Trade3.02.61.163.22.71.20-0.03
Retail Trade7.59.30.817.99.90.79+0.02
Accommodation and Food Services5.76.90.825.87.10.81+0.02
Transport, Postal and Warehousing7.15.31.337.05.41.29+0.03
Information Media and Telecommunications1.61.11.382.11.51.36+0.01
Financial and Insurance Services4.42.71.664.12.61.57+0.06
Rental, Hiring and Real Estate Services2.01.91.072.12.01.06+0.00
Professional, Scientific and Technical Services11.97.41.6010.36.71.54+0.04
Administrative and Support Services3.13.30.963.43.50.97-0.01
Public Administration and Safety8.56.61.288.56.71.27+0.01
Education and Training8.59.20.938.69.30.92+0.01
Health Care and Social Assistance14.515.60.9313.613.60.99-0.07
Arts and Recreation Services1.51.50.981.81.81.02-0.03
Other Services3.74.20.883.94.10.94-0.06
Total Industries1001001.00100100+1.000

Source: National Institute of Economic and Industry Research (NIEIR) ©2023. ©2023. 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 Brisbane in 2021/22 shows the three industries with the highest location quotient relative to Queensland were:

  • Financial and Insurance Services (1.7 )
  • Professional, Scientific and Technical Services (1.6 )
  • Information Media and Telecommunications (1.4 )

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

  • Construction (0.8 )
  • Mining (0.6 )
  • 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 2016/17 and 2021/22 in the City of Brisbane were for these industries:

  • Agriculture, Forestry and Fishing (-0.1)
  • Construction (-0.1)
  • Health Care and Social Assistance (-0.1)
  • Financial and Insurance Services (+0.1)

City of Brisbane

economic profile