City of MonashEconomic profile
Skip to content

City of Monash

Location quotient by industry

This page has been updated with 2016-17 NIEIR-ID economic model data

You may notice some changes to current and past data. Learn more about these changes.

In 2016/17, Wholesale Trade was a major specialisation in City of Monash 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 Monash - Employment (Total)2016/172011/12Change
Industry
(Click rows to view sub-categories)
%Victoria %Location Quotient (Victoria)%Victoria %Location Quotient (Victoria)2011/12 to 2016/17
Agriculture, Forestry and Fishing0.22.70.090.12.50.05+0.72
Mining0.10.40.160.10.50.26-0.39
Manufacturing11.78.91.3113.710.61.29+0.02
Electricity, Gas, Water and Waste Services0.91.30.690.91.20.76-0.09
Construction9.88.71.139.78.81.11+0.02
Wholesale Trade6.63.51.888.84.51.98-0.05
Retail Trade10.010.40.9610.110.60.95+0.01
Accommodation and Food Services4.16.70.623.86.10.63-0.02
Transport, Postal and Warehousing4.45.10.864.35.10.84+0.02
Information Media and Telecommunications1.92.20.902.12.30.900
Financial and Insurance Services2.64.00.642.64.20.62+0.03
Rental, Hiring and Real Estate Services1.61.60.981.41.50.90+0.10
Professional, Scientific and Technical Services8.58.31.027.68.00.94+0.08
Administrative and Support Services4.13.51.173.63.51.03+0.13
Public Administration and Safety2.95.30.542.95.30.55-0.02
Education and Training12.78.81.4511.88.11.46-0.01
Health Care and Social Assistance13.812.71.0912.211.41.07+0.02
Arts and Recreation Services1.02.10.471.02.00.49-0.04
Other Services3.23.80.833.23.80.86-0.04

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 City of Monash relative to Victoria location quotient: 0.09 Mining for City of Monash relative to Victoria location quotient: 0.16 Manufacturing for City of Monash relative to Victoria location quotient: 1.31 Electricity, Gas, Water and Waste Services for City of Monash relative to Victoria location quotient: 0.69 Construction for City of Monash relative to Victoria location quotient: 1.13 Wholesale Trade for City of Monash relative to Victoria location quotient: 1.88 Retail Trade for City of Monash relative to Victoria location quotient: 0.96 Accommodation and Food Services for City of Monash relative to Victoria location quotient: 0.62 Transport, Postal and Warehousing for City of Monash relative to Victoria location quotient: 0.86 Information Media and Telecommunications for City of Monash relative to Victoria location quotient: 0.90 Financial and Insurance Services for City of Monash relative to Victoria location quotient: 0.64 Rental, Hiring and Real Estate Services for City of Monash relative to Victoria location quotient: 0.98 Professional, Scientific and Technical Services for City of Monash relative to Victoria location quotient: 1.02 Administrative and Support Services for City of Monash relative to Victoria location quotient: 1.17 Public Administration and Safety for City of Monash relative to Victoria location quotient: 0.54 Education and Training for City of Monash relative to Victoria location quotient: 1.45 Health Care and Social Assistance for City of Monash relative to Victoria location quotient: 1.09 Arts and Recreation Services for City of Monash relative to Victoria location quotient: 0.47 Other Services for City of Monash relative to Victoria location quotient: 0.83
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: 0.72 Mining, Change: -0.39 Manufacturing, Change: 0.02 Electricity, Gas, Water and Waste Services, Change: -0.09 Construction, Change: 0.02 Wholesale Trade, Change: -0.05 Retail Trade, Change: 0.01 Accommodation and Food Services, Change: -0.02 Transport, Postal and Warehousing, Change: 0.02 Information Media and Telecommunications, Change: 0 Financial and Insurance Services, Change: 0.03 Rental, Hiring and Real Estate Services, Change: 0.10 Professional, Scientific and Technical Services, Change: 0.08 Administrative and Support Services, Change: 0.13 Public Administration and Safety, Change: -0.02 Education and Training, Change: -0.01 Health Care and Social Assistance, Change: 0.02 Arts and Recreation Services, Change: -0.04 Other Services, Change: -0.04
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 City of Monash in 2016/17 shows the three industries with the highest location quotient relative to Victoria were:

  • Wholesale Trade (1.9)
  • Education and Training (1.4)
  • Manufacturing (1.3)

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

  • Agriculture, Forestry and Fishing (0.1)
  • Mining (0.2)
  • Arts and Recreation Services (0.5)

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 City of Monash were for these industries:

  • Agriculture, Forestry and Fishing (+0.7)
  • Mining (-0.4)
  • Administrative and Support Services (+0.1)

v18.07.11-1.0.0