RDA Murraylands and Riverland

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Southern Mallee District Council

Location quotient by industry

In 2018/19, Agriculture, Forestry and Fishing was a major specialisation in the Southern Mallee District 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
Southern Mallee District Council - Employment (Total)2018/192013/14Change
Industry (Click rows to view sub-categories)%. South Australia%Location Quotient South Australia%. South Australia%Location Quotien South Australia2018/19 - 2013/14
Agriculture, Forestry and Fishing43.24.010.72454.310.65+0.01
Mining0.11.30.0601.70.00--
Manufacturing6.18.50.7249.50.40+0.80
Electricity, Gas, Water and Waste Services0.31.40.2401.50.16+0.52
Construction4.48.60.5238.20.42+0.24
Wholesale Trade3.53.11.1543.31.23-0.06
Retail Trade7.211.00.65810.80.72-0.09
Accommodation and Food Services3.96.70.5856.40.81-0.28
Transport, Postal and Warehousing2.64.50.5734.50.56+0.01
Information Media and Telecommunications0.61.40.4001.70.28+0.40
Financial and Insurance Services1.12.90.3912.90.48-0.17
Rental, Hiring and Real Estate Services0.91.20.7001.40.31+1.28
Professional, Scientific and Technical Services1.55.90.2615.60.25+0.05
Administrative and Support Services1.93.50.5523.50.56-0.02
Public Administration and Safety4.27.30.5837.00.49+0.17
Education and Training6.18.60.7168.30.69+0.02
Health Care and Social Assistance9.214.50.63914.00.61+0.04
Arts and Recreation Services0.31.40.2401.50.32-0.26
Other Services2.84.10.6844.00.97-0.29
Total Industries100100.01.00100100.0+1.000

Source: National Institute of Economic and Industry Research (NIEIR) ©2019. 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

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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 the Southern Mallee District Council in 2018/19 shows the three industries with the highest location quotient relative to South Australia were:

  • Agriculture, Forestry and Fishing (10.7 )
  • Wholesale Trade (1.2 )
  • Manufacturing (0.7 )

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

  • Electricity, Gas, Water and Waste Services (0.2 )
  • Arts and Recreation Services (0.2 )
  • Mining (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 2013/14 and 2018/19 in the Southern Mallee District Council were for these industries:

  • Rental, Hiring and Real Estate Services (+1.3)
  • Manufacturing (+0.8)
  • Electricity, Gas, Water and Waste Services (+0.5)
  • Information Media and Telecommunications (+0.4)

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RDA Murraylands and Riverland

economic profile