The location quotient (LQ) measures a region's industrial specialization relative to a larger geography (in this case, the nation). In this chart, the LQ is calculated as a region's share of jobs divided by the nation's share of jobs for each industry. A value greater than 1 means the region is more concentrated in this sector than the nation; whereas, a value less than 1 means the region is less concentrated than the nation. Location quotient can reveal what makes a particular region unique in comparison to the nation; where more highly-concentrated industries tend to export their goods or services to other regions, forming the base of economic growth. Note that the default settings show industries that are either more export-oriented or have a signficant role in our region's economy (like Private Education and Healthcare). Less significant industries are hidden by default but can be turned on by clicking on the industry name in the legend.
Location quotients by industry sector are usually slow to change, nonetheless, there are still noticeable patterns. The sectors with the three largest location quotients, have some of the most movement over the last six years (2017-2023). Manufacturing dipped during 2020 but returned back to its 2017 level of 1.45. Management of Companies declined from 1.39 in 2017 to 1.36 in 2023. Professional & Technical Services has been slowly declining from 1.59 in 2017 to 1.38 in 2023. The decline in Professional & Technical Services location quotient is concerning, as it suggests our region is not growing as fast as the nation. Among the sectors with lower location quotients, Wholesale Trade, Transportation, & Utilities and Natural Resources, Mining, & Construction realized growth in recent years; while Information & Financial Activities and Private Education & Health Services experienced little change or decline.
Some counties have suppressed data, so there is a break in the time series.