Wollondilly Shire

Location quotient by industry

In 2022/23, Mining was a major specialisation in Wollondilly Shire 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

Current benchmark:
Comparison year:
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Location quotient
Wollondilly Shire - Employment (Total)2022/232016/17Change
Industry (Click rows to view sub-categories)%. New South Wales%Location Quotient New South Wales%. New South Wales%Location Quotien New South Wales2022/23 - 2016/17
Agriculture, Forestry and Fishing6.91.93.715.32.22.47+0.50
Electricity, Gas, Water and Waste Services2.11.11.911.91.01.90+0.00
Wholesale Trade1.83.00.591.73.40.51+0.15
Retail Trade6.29.40.667.09.60.73-0.10
Accommodation and Food Services5.16.50.785.26.90.76+0.03
Transport, Postal and Warehousing4.35.20.835.25.20.99-0.16
Information Media and Telecommunications0.
Financial and Insurance Services1.
Rental, Hiring and Real Estate Services1.11.70.641.01.70.60+0.08
Professional, Scientific and Technical Services3.910.00.394.29.40.45-0.13
Administrative and Support Services3.
Public Administration and Safety3.76.00.623.25.60.57+0.08
Education and Training8.
Health Care and Social Assistance8.514.80.576.913.10.53+0.09
Arts and Recreation Services1.51.60.931.71.70.95-0.02
Other Services3.
Total Industries1001001.00100100+1.000

Source: National Institute of Economic and Industry Research (NIEIR) ©2024. ©2023. Compiled and presented in economy.id by .id (informed decisions). 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 Wollondilly Shire in 2022/23 shows the three industries with the highest location quotient relative to New South Wales were:

  • Mining (10.9 )
  • Agriculture, Forestry and Fishing (3.7 )
  • Construction (2.1 )

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

  • Professional, Scientific and Technical Services (0.4 )
  • Financial and Insurance Services (0.2 )
  • Information Media and Telecommunications (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 2016/17 and 2022/23 in Wollondilly Shire were for these industries:

  • Financial and Insurance Services (+0.7)
  • Agriculture, Forestry and Fishing (+0.5)
  • Information Media and Telecommunications (-0.4)
  • Mining (-0.2)

Wollondilly Shire Council

economic profile