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Federation Council area

Location quotient by industry

In 2018/19, Agriculture, Forestry and Fishing was a major specialisation in the Federation 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

Data source

National Economics (NIEIR) - Modelled series

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Location quotient
Federation Council area - Employment (Total)2018/192013/14Change
Industry (Click rows to view sub-categories)%. NSW%Location Quotient NSW%. NSW%Location Quotien NSW2018/19 - 2013/14
Agriculture, Forestry and Fishing19.22.19.1518.42.38.07+0.13
Mining0.30.90.280.31.10.25+0.15
Manufacturing17.56.82.5919.47.62.54+0.02
Electricity, Gas, Water and Waste Services0.51.00.520.61.10.56-0.08
Construction8.19.40.865.88.40.70+0.23
Wholesale Trade2.63.60.702.94.00.73-0.04
Retail Trade8.210.30.808.710.10.86-0.07
Accommodation and Food Services11.87.01.6711.97.11.67+0.00
Transport, Postal and Warehousing5.15.01.015.75.11.11-0.09
Information Media and Telecommunications0.32.30.130.52.40.19-0.31
Financial and Insurance Services0.65.10.110.75.10.15-0.26
Rental, Hiring and Real Estate Services0.51.60.341.01.80.56-0.40
Professional, Scientific and Technical Services2.69.10.282.68.30.31-0.11
Administrative and Support Services3.43.31.032.53.50.73+0.41
Public Administration and Safety3.36.00.563.55.90.59-0.06
Education and Training4.88.50.565.08.50.59-0.04
Health Care and Social Assistance6.512.40.536.112.10.50+0.05
Arts and Recreation Services1.81.61.091.41.70.85+0.29
Other Services3.13.90.803.03.90.77+0.04
Total Industries1001001.00100100+1.000

Source: National Institute of Economic and Industry Research (NIEIR) ©2019. 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

Did you know? By clicking/tapping on a category in the chart below you will be able to drilldown to the sub categories.
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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 Federation Council area in 2018/19 shows the three industries with the highest location quotient relative to NSW were:

  • Agriculture, Forestry and Fishing (9.2 )
  • Manufacturing (2.6 )
  • Accommodation and Food Services (1.7 )

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

  • Professional, Scientific and Technical Services (0.3 )
  • Information Media and Telecommunications (0.1 )
  • Financial and Insurance Services (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 2013/14 and 2018/19 in the Federation Council area were for these industries:

  • Administrative and Support Services (+0.4)
  • Rental, Hiring and Real Estate Services (-0.4)
  • Information Media and Telecommunications (-0.3)
  • Arts and Recreation Services (+0.3)

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