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City of Launceston

Location quotient by industry

In 2017/18, Financial and Insurance Services was a major specialisation in City of Launceston 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

Did you know? By clicking/tapping on a data row in the table you will be able to see sub categories.
Location quotient
City of Launceston - Employment (Total)2017/182012/13Change
Industry
(Click rows to view sub-categories)
%Tasmania %Location Quotient (Tasmania)%Tasmania %Location Quotient (Tasmania)2012/13 to 2017/18
Agriculture, Forestry and Fishing1.55.40.281.35.00.25+0.10
Mining0.31.40.210.31.80.17+0.24
Manufacturing5.17.20.707.38.70.85-0.17
Electricity, Gas, Water and Waste Services1.71.61.031.91.81.030
Construction8.09.30.867.48.00.92-0.06
Wholesale Trade2.62.31.163.93.21.25-0.07
Retail Trade13.211.01.2012.610.81.16+0.03
Accommodation and Food Services8.07.61.067.57.21.03+0.03
Transport, Postal and Warehousing3.34.20.774.04.50.90-0.14
Information Media and Telecommunications1.61.60.992.11.81.15-0.13
Financial and Insurance Services3.32.11.583.92.41.65-0.04
Rental, Hiring and Real Estate Services1.41.31.131.41.41.02+0.11
Professional, Scientific and Technical Services5.34.71.124.84.81.02+0.10
Administrative and Support Services2.62.90.922.82.71.04-0.12
Public Administration and Safety5.67.40.756.88.40.81-0.08
Education and Training11.09.71.1410.39.11.140
Health Care and Social Assistance19.314.21.3616.112.71.26+0.08
Arts and Recreation Services1.82.30.781.32.10.65+0.19
Other Services4.53.91.154.33.81.150

Source: National Institute of Economic and Industry Research (NIEIR) ©2018. 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 2017/18
Location quotient by industry sector 2017/18 Agriculture, Forestry and Fishing for City of Launceston relative to Tasmania location quotient: 0.28 Mining for City of Launceston relative to Tasmania location quotient: 0.21 Manufacturing for City of Launceston relative to Tasmania location quotient: 0.70 Electricity, Gas, Water and Waste Services for City of Launceston relative to Tasmania location quotient: 1.03 Construction for City of Launceston relative to Tasmania location quotient: 0.86 Wholesale Trade for City of Launceston relative to Tasmania location quotient: 1.16 Retail Trade for City of Launceston relative to Tasmania location quotient: 1.20 Accommodation and Food Services for City of Launceston relative to Tasmania location quotient: 1.06 Transport, Postal and Warehousing for City of Launceston relative to Tasmania location quotient: 0.77 Information Media and Telecommunications for City of Launceston relative to Tasmania location quotient: 0.99 Financial and Insurance Services for City of Launceston relative to Tasmania location quotient: 1.58 Rental, Hiring and Real Estate Services for City of Launceston relative to Tasmania location quotient: 1.13 Professional, Scientific and Technical Services for City of Launceston relative to Tasmania location quotient: 1.12 Administrative and Support Services for City of Launceston relative to Tasmania location quotient: 0.92 Public Administration and Safety for City of Launceston relative to Tasmania location quotient: 0.75 Education and Training for City of Launceston relative to Tasmania location quotient: 1.14 Health Care and Social Assistance for City of Launceston relative to Tasmania location quotient: 1.36 Arts and Recreation Services for City of Launceston relative to Tasmania location quotient: 0.78 Other Services for City of Launceston relative to Tasmania location quotient: 1.15
Source: National Institute of Economic and Industry Research (NIEIR) ©2018
Compiled and presented in economy.id by .id the population experts
Change in LQ by industry sector, 2012/13 to 2017/18
Change in LQ by industry sector, 2012/13 to 2017/18 Agriculture, Forestry and Fishing, Change: 0.10 Mining, Change: 0.24 Manufacturing, Change: -0.17 Electricity, Gas, Water and Waste Services, Change: 0 Construction, Change: -0.06 Wholesale Trade, Change: -0.07 Retail Trade, Change: 0.03 Accommodation and Food Services, Change: 0.03 Transport, Postal and Warehousing, Change: -0.14 Information Media and Telecommunications, Change: -0.13 Financial and Insurance Services, Change: -0.04 Rental, Hiring and Real Estate Services, Change: 0.11 Professional, Scientific and Technical Services, Change: 0.10 Administrative and Support Services, Change: -0.12 Public Administration and Safety, Change: -0.08 Education and Training, Change: 0 Health Care and Social Assistance, Change: 0.08 Arts and Recreation Services, Change: 0.19 Other Services, Change: 0
Source: National Institute of Economic and Industry Research (NIEIR) ©2018
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 City of Launceston in 2017/18 shows the three industries with the highest location quotient relative to Tasmania were:

  • Financial and Insurance Services (1.6)
  • Health Care and Social Assistance (1.4)
  • Retail Trade (1.2)

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

  • Mining (0.2)
  • Agriculture, Forestry and Fishing (0.3)
  • Manufacturing (0.7)

Emerging groups

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

The largest changes in the employment (Total) LQ between 2012/13 and 2017/18 in City of Launceston were for these industries:

  • Mining (+0.2)
  • Arts and Recreation Services (+0.2)
  • Manufacturing (-0.2)
  • Transport, Postal and Warehousing (-0.1)

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