Grow South East (South East Metropolitan Region)

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Grow South East (South East Metropolitan Region)

Location quotient by industry

In 2019/20, Transport, Postal and Warehousing was a major specialisation in the 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

Data source

National Economics (NIEIR) - Modelled series

Current area:
Current benchmark:
Comparison year:
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Location quotient
Grow South East (South East Metropolitan Region) - Employment (Total)2019/202014/15Change
Industry (Click rows to view sub-categories)%. Western Australia%Location Quotient Western Australia%. Western Australia%Location Quotien Western Australia2019/20 - 2014/15
Agriculture, Forestry and Fishing0.82.60.320.82.50.33-0.01
Electricity, Gas, Water and Waste Services1.21.60.741.11.30.83-0.11
Wholesale Trade5.83.11.875.63.11.83+0.02
Retail Trade10.59.21.1410.09.71.03+0.11
Accommodation and Food Services5.26.00.875.56.20.88-0.02
Transport, Postal and Warehousing10.14.82.1310.34.82.14+0.00
Information Media and Telecommunications0.81.10.730.91.20.73+0.00
Financial and Insurance Services1.32.40.531.32.40.52+0.02
Rental, Hiring and Real Estate Services1.81.80.992.01.91.07-0.07
Professional, Scientific and Technical Services5.57.60.725.37.30.73-0.01
Administrative and Support Services2.93.00.953.33.21.02-0.06
Public Administration and Safety4.96.90.714.86.10.79-0.10
Education and Training9.
Health Care and Social Assistance9.311.60.818.411.40.74+0.09
Arts and Recreation Services2.51.61.553.01.81.70-0.09
Other Services4.
Total Industries1001001.00100100+1.000

Source: National Institute of Economic and Industry Research (NIEIR) ©2021. Compiled and presented in by .id informed decisions. 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 Grow South East (South East Metropolitan Region) in 2019/20 shows the three industries with the highest location quotient relative to Western Australia were:

  • Transport, Postal and Warehousing (2.1 )
  • Wholesale Trade (1.9 )
  • Arts and Recreation Services (1.6 )

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

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

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

  • Retail Trade (+0.1)
  • Electricity, Gas, Water and Waste Services (-0.1)
  • Public Administration and Safety (-0.1)
  • Construction (+0.1)

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Grow South East (South East Metropolitan Region)

economic profile