Cardinia ShireEconomic profile
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Cardinia Shire

Location quotient by industry

In 2016/17, Agriculture, Forestry and Fishing was a major specialisation in Cardinia Shire 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
Cardinia Shire - Employment (Total)2016/172011/12Change
Industry
(Click rows to view sub-categories)
%Victoria %Location Quotient (Victoria)%Victoria %Location Quotient (Victoria)2011/12 to 2016/17
Agriculture, Forestry and Fishing5.62.72.069.02.53.60-0.43
Mining0.70.41.800.40.50.97+0.87
Manufacturing7.98.90.897.610.60.72+0.25
Electricity, Gas, Water and Waste Services1.01.30.761.31.21.09-0.31
Construction15.78.71.7915.38.81.75+0.02
Wholesale Trade1.93.50.553.34.50.74-0.25
Retail Trade13.310.41.2812.110.61.14+0.12
Accommodation and Food Services8.46.71.257.46.11.21+0.03
Transport, Postal and Warehousing4.55.10.875.05.10.96-0.09
Information Media and Telecommunications0.82.20.360.92.30.41-0.11
Financial and Insurance Services1.24.00.301.14.20.26+0.14
Rental, Hiring and Real Estate Services1.41.60.871.61.51.04-0.17
Professional, Scientific and Technical Services4.28.30.514.58.00.56-0.09
Administrative and Support Services3.33.50.953.03.50.87+0.09
Public Administration and Safety2.55.30.472.85.30.53-0.10
Education and Training11.58.81.3110.08.11.24+0.06
Health Care and Social Assistance9.912.70.788.611.40.75+0.04
Arts and Recreation Services1.82.10.881.82.00.90-0.03
Other Services4.33.81.124.23.81.11+0.01

Source: National Institute of Economic and Industry Research (NIEIR) ©2016. Compiled and presented in economy.id by .id , the population experts.

NIEIR-ID data are adjusted each year, using updated employment estimates. Each release may change previous years’ figures.Learn more
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 2016/17
Location quotient by industry sector 2016/17 Agriculture, Forestry and Fishing for Cardinia Shire relative to Victoria location quotient: 2.06 Mining for Cardinia Shire relative to Victoria location quotient: 1.80 Manufacturing for Cardinia Shire relative to Victoria location quotient: 0.89 Electricity, Gas, Water and Waste Services for Cardinia Shire relative to Victoria location quotient: 0.76 Construction for Cardinia Shire relative to Victoria location quotient: 1.79 Wholesale Trade for Cardinia Shire relative to Victoria location quotient: 0.55 Retail Trade for Cardinia Shire relative to Victoria location quotient: 1.28 Accommodation and Food Services for Cardinia Shire relative to Victoria location quotient: 1.25 Transport, Postal and Warehousing for Cardinia Shire relative to Victoria location quotient: 0.87 Information Media and Telecommunications for Cardinia Shire relative to Victoria location quotient: 0.36 Financial and Insurance Services for Cardinia Shire relative to Victoria location quotient: 0.30 Rental, Hiring and Real Estate Services for Cardinia Shire relative to Victoria location quotient: 0.87 Professional, Scientific and Technical Services for Cardinia Shire relative to Victoria location quotient: 0.51 Administrative and Support Services for Cardinia Shire relative to Victoria location quotient: 0.95 Public Administration and Safety for Cardinia Shire relative to Victoria location quotient: 0.47 Education and Training for Cardinia Shire relative to Victoria location quotient: 1.31 Health Care and Social Assistance for Cardinia Shire relative to Victoria location quotient: 0.78 Arts and Recreation Services for Cardinia Shire relative to Victoria location quotient: 0.88 Other Services for Cardinia Shire relative to Victoria location quotient: 1.12
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, 2011/12 to 2016/17
Change in LQ by industry sector, 2011/12 to 2016/17 Agriculture, Forestry and Fishing, Change: -0.43 Mining, Change: 0.87 Manufacturing, Change: 0.25 Electricity, Gas, Water and Waste Services, Change: -0.31 Construction, Change: 0.02 Wholesale Trade, Change: -0.25 Retail Trade, Change: 0.12 Accommodation and Food Services, Change: 0.03 Transport, Postal and Warehousing, Change: -0.09 Information Media and Telecommunications, Change: -0.11 Financial and Insurance Services, Change: 0.14 Rental, Hiring and Real Estate Services, Change: -0.17 Professional, Scientific and Technical Services, Change: -0.09 Administrative and Support Services, Change: 0.09 Public Administration and Safety, Change: -0.10 Education and Training, Change: 0.06 Health Care and Social Assistance, Change: 0.04 Arts and Recreation Services, Change: -0.03 Other Services, Change: 0.01
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 Cardinia Shire in 2016/17 shows the three industries with the highest location quotient relative to Victoria were:

  • Agriculture, Forestry and Fishing (2.1)
  • Mining (1.8)
  • Construction (1.8)

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

  • Financial and Insurance Services (0.3)
  • Information Media and Telecommunications (0.4)
  • Public Administration and Safety (0.5)

Emerging groups

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

The largest changes in the employment (Total) LQ between 2011/12 and 2016/17 in Cardinia Shire were for these industries:

  • Mining (+0.9)
  • Agriculture, Forestry and Fishing (-0.4)
  • Electricity, Gas, Water and Waste Services (-0.3)
  • Wholesale Trade (-0.3)

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