Waverley Council area
Location quotient by industry
In 2018/19, [Econ_LocationQuotient].[Top1Label] was a major specialisation in Waverley Council area 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
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 Waverley Council area in 2018/19 shows the three industries with the highest location quotient relative to Greater Sydney were:
The three industries with the lowest location quotient relative to Greater Sydney were: