Grow South East (South East Metropolitan Region)Economic profile
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Grow South East (South East Metropolitan Region)

Location quotient by industry

In 2016/17, Transport, Postal and Warehousing was a major specialisation in Grow South East (South East Metropolitan 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

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Location quotient
Grow South East (South East Metropolitan Region) - Employment (Total)2016/172011/12Change
Industry
(Click rows to view sub-categories)
%Western Australia %Location Quotient (Western Australia)%Western Australia %Location Quotient (Western Australia)2011/12 to 2016/17
Agriculture, Forestry and Fishing0.92.70.331.02.80.36-0.09
Mining3.46.90.503.07.40.41+0.23
Manufacturing7.96.31.2610.38.01.29-0.02
Electricity, Gas, Water and Waste Services1.01.30.791.31.40.91-0.14
Construction11.410.21.1110.810.51.02+0.09
Wholesale Trade5.12.81.816.43.51.84-0.01
Retail Trade9.79.61.0210.49.91.06-0.04
Accommodation and Food Services6.56.80.955.25.90.88+0.09
Transport, Postal and Warehousing10.44.92.1110.44.92.14-0.01
Information Media and Telecommunications0.91.20.750.81.30.63+0.20
Financial and Insurance Services1.32.30.561.42.50.57-0.01
Rental, Hiring and Real Estate Services1.91.81.042.11.81.14-0.08
Professional, Scientific and Technical Services5.26.60.795.77.40.77+0.02
Administrative and Support Services3.63.31.093.23.30.97+0.12
Public Administration and Safety4.76.20.774.96.20.78-0.02
Education and Training9.09.30.978.27.61.08-0.10
Health Care and Social Assistance9.111.80.777.510.00.76+0.02
Arts and Recreation Services3.21.81.722.61.61.68+0.02
Other Services4.84.21.154.84.11.16-0.01

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 Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 0.33 Mining for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 0.50 Manufacturing for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 1.26 Electricity, Gas, Water and Waste Services for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 0.79 Construction for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 1.11 Wholesale Trade for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 1.81 Retail Trade for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 1.02 Accommodation and Food Services for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 0.95 Transport, Postal and Warehousing for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 2.11 Information Media and Telecommunications for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 0.75 Financial and Insurance Services for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 0.56 Rental, Hiring and Real Estate Services for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 1.04 Professional, Scientific and Technical Services for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 0.79 Administrative and Support Services for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 1.09 Public Administration and Safety for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 0.77 Education and Training for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 0.97 Health Care and Social Assistance for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 0.77 Arts and Recreation Services for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 1.72 Other Services for Grow South East (South East Metropolitan Region) relative to Western Australia location quotient: 1.15
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: -0.09 Mining, Change: 0.23 Manufacturing, Change: -0.02 Electricity, Gas, Water and Waste Services, Change: -0.14 Construction, Change: 0.09 Wholesale Trade, Change: -0.01 Retail Trade, Change: -0.04 Accommodation and Food Services, Change: 0.09 Transport, Postal and Warehousing, Change: -0.01 Information Media and Telecommunications, Change: 0.20 Financial and Insurance Services, Change: -0.01 Rental, Hiring and Real Estate Services, Change: -0.08 Professional, Scientific and Technical Services, Change: 0.02 Administrative and Support Services, Change: 0.12 Public Administration and Safety, Change: -0.02 Education and Training, Change: -0.10 Health Care and Social Assistance, Change: 0.02 Arts and Recreation Services, Change: 0.02 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 Grow South East (South East Metropolitan Region) in 2016/17 shows the three industries with the highest location quotient relative to Western Australia were:

  • Transport, Postal and Warehousing (2.1)
  • Wholesale Trade (1.8)
  • Arts and Recreation Services (1.7)

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

  • Agriculture, Forestry and Fishing (0.3)
  • Mining (0.5)
  • Financial and Insurance Services (0.6)

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 Grow South East (South East Metropolitan Region) were for these industries:

  • Mining (+0.2)
  • Information Media and Telecommunications (+0.2)
  • Electricity, Gas, Water and Waste Services (-0.1)
  • Administrative and Support Services (+0.1)

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