Lithgow City Council

Location quotient by industry

In 2020/21, Mining was a major specialisation in Lithgow City Council 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
Lithgow City Council - Employment (Total)2020/212015/16Change
Industry (Click rows to view sub-categories)%. New South Wales%Location Quotient New South Wales%. New South Wales%Location Quotien New South Wales2020/21 - 2015/16
Agriculture, Forestry and Fishing4.02.11.902.82.31.24+0.54
Mining11.11.010.7012.11.011.89-0.10
Manufacturing8.06.61.225.46.70.80+0.52
Electricity, Gas, Water and Waste Services5.11.04.884.61.14.26+0.15
Construction5.69.00.625.28.70.61+0.02
Wholesale Trade1.83.40.522.23.50.63-0.17
Retail Trade7.99.50.839.39.90.93-0.11
Accommodation and Food Services7.66.51.188.27.21.14+0.03
Transport, Postal and Warehousing4.65.00.925.55.01.10-0.16
Information Media and Telecommunications0.22.20.080.72.40.32-0.74
Financial and Insurance Services2.05.10.392.05.10.39+0.00
Rental, Hiring and Real Estate Services1.01.70.631.11.80.63+0.01
Professional, Scientific and Technical Services2.310.10.232.68.70.30-0.24
Administrative and Support Services2.83.30.853.53.60.97-0.13
Public Administration and Safety10.76.11.7611.45.91.93-0.09
Education and Training7.38.70.847.98.70.91-0.08
Health Care and Social Assistance14.213.21.0710.812.90.84+0.28
Arts and Recreation Services0.61.70.370.91.70.53-0.31
Other Services3.13.70.833.63.80.95-0.13
Total Industries1001001.00100100+1.000

Source: National Institute of Economic and Industry Research (NIEIR) ©2021. Compiled and presented in economy.id 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 Lithgow City Council in 2020/21 shows the three industries with the highest location quotient relative to New South Wales were:

  • Mining (10.7 )
  • Electricity, Gas, Water and Waste Services (4.9 )
  • Agriculture, Forestry and Fishing (1.9 )

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

  • Arts and Recreation Services (0.4 )
  • Professional, Scientific and Technical Services (0.2 )
  • Information Media and Telecommunications (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 2015/16 and 2020/21 in Lithgow City Council were for these industries:

  • Information Media and Telecommunications (-0.7)
  • Agriculture, Forestry and Fishing (+0.5)
  • Manufacturing (+0.5)
  • Arts and Recreation Services (-0.3)

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