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City of Port Phillip

Location quotient by industry

In 2017/18, Professional, Scientific and Technical Services was a major specialisation in City of Port Phillip 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 Port Phillip - Employment (Total)2017/182012/13Change
Industry
(Click rows to view sub-categories)
%Victoria %Location Quotient (Victoria)%Victoria %Location Quotient (Victoria)2012/13 to 2017/18
Agriculture, Forestry and Fishing0.32.50.130.22.40.09+0.39
Mining0.50.41.450.80.41.85-0.21
Manufacturing3.98.30.474.710.00.470
Electricity, Gas, Water and Waste Services0.31.10.260.41.20.32-0.19
Construction8.29.10.908.18.80.93-0.02
Wholesale Trade3.33.21.034.74.31.10-0.06
Retail Trade7.510.80.696.910.70.64+0.08
Accommodation and Food Services7.87.01.126.86.31.07+0.04
Transport, Postal and Warehousing4.34.90.884.55.00.890
Information Media and Telecommunications3.81.92.034.52.22.00+0.02
Financial and Insurance Services6.93.91.757.54.21.79-0.02
Rental, Hiring and Real Estate Services3.51.62.152.91.51.87+0.15
Professional, Scientific and Technical Services20.98.52.4720.98.22.57-0.04
Administrative and Support Services5.23.41.545.63.51.60-0.04
Public Administration and Safety2.75.30.513.15.30.58-0.13
Education and Training5.29.30.563.98.30.47+0.20
Health Care and Social Assistance8.213.20.626.611.80.55+0.12
Arts and Recreation Services3.11.91.673.72.01.87-0.10
Other Services4.33.81.134.33.71.14-0.01

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 Port Phillip relative to Victoria location quotient: 0.13 Mining for City of Port Phillip relative to Victoria location quotient: 1.45 Manufacturing for City of Port Phillip relative to Victoria location quotient: 0.47 Electricity, Gas, Water and Waste Services for City of Port Phillip relative to Victoria location quotient: 0.26 Construction for City of Port Phillip relative to Victoria location quotient: 0.90 Wholesale Trade for City of Port Phillip relative to Victoria location quotient: 1.03 Retail Trade for City of Port Phillip relative to Victoria location quotient: 0.69 Accommodation and Food Services for City of Port Phillip relative to Victoria location quotient: 1.12 Transport, Postal and Warehousing for City of Port Phillip relative to Victoria location quotient: 0.88 Information Media and Telecommunications for City of Port Phillip relative to Victoria location quotient: 2.03 Financial and Insurance Services for City of Port Phillip relative to Victoria location quotient: 1.75 Rental, Hiring and Real Estate Services for City of Port Phillip relative to Victoria location quotient: 2.15 Professional, Scientific and Technical Services for City of Port Phillip relative to Victoria location quotient: 2.47 Administrative and Support Services for City of Port Phillip relative to Victoria location quotient: 1.54 Public Administration and Safety for City of Port Phillip relative to Victoria location quotient: 0.51 Education and Training for City of Port Phillip relative to Victoria location quotient: 0.56 Health Care and Social Assistance for City of Port Phillip relative to Victoria location quotient: 0.62 Arts and Recreation Services for City of Port Phillip relative to Victoria location quotient: 1.67 Other Services for City of Port Phillip relative to Victoria location quotient: 1.13
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: 0.39 Mining, Change: -0.21 Manufacturing, Change: 0 Electricity, Gas, Water and Waste Services, Change: -0.19 Construction, Change: -0.02 Wholesale Trade, Change: -0.06 Retail Trade, Change: 0.08 Accommodation and Food Services, Change: 0.04 Transport, Postal and Warehousing, Change: 0 Information Media and Telecommunications, Change: 0.02 Financial and Insurance Services, Change: -0.02 Rental, Hiring and Real Estate Services, Change: 0.15 Professional, Scientific and Technical Services, Change: -0.04 Administrative and Support Services, Change: -0.04 Public Administration and Safety, Change: -0.13 Education and Training, Change: 0.20 Health Care and Social Assistance, Change: 0.12 Arts and Recreation Services, Change: -0.10 Other Services, Change: -0.01
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 Port Phillip in 2017/18 shows the three industries with the highest location quotient relative to Victoria were:

  • Professional, Scientific and Technical Services (2.5)
  • Rental, Hiring and Real Estate Services (2.2)
  • Information Media and Telecommunications (2.0)

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

  • Agriculture, Forestry and Fishing (0.1)
  • Electricity, Gas, Water and Waste Services (0.3)
  • Manufacturing (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 Port Phillip were for these industries:

  • Agriculture, Forestry and Fishing (+0.4)
  • Mining (-0.2)
  • Education and Training (+0.2)
  • Electricity, Gas, Water and Waste Services (-0.2)

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