Gunnedah Shire Council

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Gunnedah Shire

Location quotient by industry

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

Data source

National Economics (NIEIR) - Modelled series

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Location quotient
Gunnedah Shire - Employment (Total)2018/192013/14Change
Industry (Click rows to view sub-categories)%. New South Wales%Location Quotient New South Wales%. New South Wales%Location Quotien New South Wales2018/19 - 2013/14
Agriculture, Forestry and Fishing19.12.19.08172.37.43+0.22
Mining3.90.94.1061.15.66-0.28
Manufacturing5.26.80.7777.60.87-0.11
Electricity, Gas, Water and Waste Services1.11.01.0611.11.09-0.03
Construction5.49.40.5768.40.73-0.22
Wholesale Trade3.53.60.9734.00.81+0.19
Retail Trade9.310.30.90910.10.93-0.02
Accommodation and Food Services7.37.01.0377.11.01+0.03
Transport, Postal and Warehousing5.35.01.0555.10.94+0.11
Information Media and Telecommunications0.42.30.1612.40.28-0.42
Financial and Insurance Services1.15.10.2115.10.26-0.20
Rental, Hiring and Real Estate Services1.01.60.6511.80.79-0.17
Professional, Scientific and Technical Services4.39.10.4748.30.45+0.05
Administrative and Support Services2.53.30.7533.50.80-0.06
Public Administration and Safety5.26.00.8755.90.86+0.02
Education and Training8.58.51.0088.50.97+0.04
Health Care and Social Assistance11.512.40.931012.10.79+0.17
Arts and Recreation Services0.91.60.5411.70.53+0.01
Other Services4.73.91.2253.91.24-0.02
Total Industries100100.01.00100100.0+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

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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 Gunnedah Shire in 2018/19 shows the three industries with the highest location quotient relative to New South Wales were:

  • Agriculture, Forestry and Fishing (9.1 )
  • Mining (4.1 )
  • Other Services (1.2 )

The three industries with the lowest location quotient relative to New South Wales were:

  • Professional, Scientific and Technical Services (0.5 )
  • Financial and Insurance Services (0.2 )
  • Information Media and Telecommunications (0.2 )

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 Gunnedah Shire were for these industries:

  • Information Media and Telecommunications (-0.4)
  • Mining (-0.3)
  • Agriculture, Forestry and Fishing (+0.2)
  • Construction (-0.2)

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