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City of Monash

Location quotient by industry

In 2017/18, 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

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Location quotient
City of Monash - Employment (Total)2017/182012/13Change
Industry
(Click rows to view sub-categories)
%Greater Melbourne %Location Quotient (Greater Melbourne)%Greater Melbourne %Location Quotient (Greater Melbourne)2012/13 to 2017/18
Agriculture, Forestry and Fishing0.20.60.310.10.60.21+0.47
Mining0.10.30.230.10.30.43-0.46
Manufacturing10.58.11.2913.110.11.30-0.01
Electricity, Gas, Water and Waste Services0.71.00.650.91.10.78-0.17
Construction10.89.31.179.28.81.05+0.11
Wholesale Trade6.03.51.728.34.61.81-0.05
Retail Trade10.210.70.9510.310.40.99-0.04
Accommodation and Food Services4.26.80.624.06.10.66-0.05
Transport, Postal and Warehousing4.25.20.804.25.40.79+0.02
Information Media and Telecommunications1.72.20.802.02.50.79+0.02
Financial and Insurance Services2.54.50.562.64.80.55+0.03
Rental, Hiring and Real Estate Services1.71.80.951.41.60.87+0.09
Professional, Scientific and Technical Services8.79.60.917.89.30.84+0.08
Administrative and Support Services4.03.61.123.73.71.01+0.11
Public Administration and Safety2.95.20.562.95.20.560
Education and Training13.29.31.4212.28.31.47-0.03
Health Care and Social Assistance14.412.61.1412.811.31.14+0.01
Arts and Recreation Services0.92.00.461.02.10.48-0.03
Other Services3.23.90.823.23.70.85-0.03

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 Monash relative to Greater Melbourne location quotient: 0.31 Mining for City of Monash relative to Greater Melbourne location quotient: 0.23 Manufacturing for City of Monash relative to Greater Melbourne location quotient: 1.29 Electricity, Gas, Water and Waste Services for City of Monash relative to Greater Melbourne location quotient: 0.65 Construction for City of Monash relative to Greater Melbourne location quotient: 1.17 Wholesale Trade for City of Monash relative to Greater Melbourne location quotient: 1.72 Retail Trade for City of Monash relative to Greater Melbourne location quotient: 0.95 Accommodation and Food Services for City of Monash relative to Greater Melbourne location quotient: 0.62 Transport, Postal and Warehousing for City of Monash relative to Greater Melbourne location quotient: 0.80 Information Media and Telecommunications for City of Monash relative to Greater Melbourne location quotient: 0.80 Financial and Insurance Services for City of Monash relative to Greater Melbourne location quotient: 0.56 Rental, Hiring and Real Estate Services for City of Monash relative to Greater Melbourne location quotient: 0.95 Professional, Scientific and Technical Services for City of Monash relative to Greater Melbourne location quotient: 0.91 Administrative and Support Services for City of Monash relative to Greater Melbourne location quotient: 1.12 Public Administration and Safety for City of Monash relative to Greater Melbourne location quotient: 0.56 Education and Training for City of Monash relative to Greater Melbourne location quotient: 1.42 Health Care and Social Assistance for City of Monash relative to Greater Melbourne location quotient: 1.14 Arts and Recreation Services for City of Monash relative to Greater Melbourne location quotient: 0.46 Other Services for City of Monash relative to Greater Melbourne location quotient: 0.82
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: 0.47 Mining, Change: -0.46 Manufacturing, Change: -0.01 Electricity, Gas, Water and Waste Services, Change: -0.17 Construction, Change: 0.11 Wholesale Trade, Change: -0.05 Retail Trade, Change: -0.04 Accommodation and Food Services, Change: -0.05 Transport, Postal and Warehousing, Change: 0.02 Information Media and Telecommunications, Change: 0.02 Financial and Insurance Services, Change: 0.03 Rental, Hiring and Real Estate Services, Change: 0.09 Professional, Scientific and Technical Services, Change: 0.08 Administrative and Support Services, Change: 0.11 Public Administration and Safety, Change: 0 Education and Training, Change: -0.03 Health Care and Social Assistance, Change: 0.01 Arts and Recreation Services, Change: -0.03 Other Services, Change: -0.03
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 Monash in 2017/18 shows the three industries with the highest location quotient relative to Greater Melbourne were:

  • Wholesale Trade (1.7)
  • Education and Training (1.4)
  • Manufacturing (1.3)

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

  • Mining (0.2)
  • Agriculture, Forestry and Fishing (0.3)
  • 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 2012/13 and 2017/18 in City of Monash were for these industries:

  • Agriculture, Forestry and Fishing (+0.5)
  • Mining (-0.5)
  • Electricity, Gas, Water and Waste Services (-0.2)
  • Administrative and Support Services (+0.1)

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