New Location Quotient Tool Visualizes Relative Concentration of Employment by Industry

1 Jun 2023


Which Minnesota county has the highest concentration of Transportation Equipment Manufacturing employment? Which industry is most highly concentrated in Economic Development Region 9 – South Central? These are just a couple of the questions answerable via a new visualization available on DEED's Labor Market Information website. The Minnesota Location Quotient Tool utilizes Quarterly Census of Employment and Wages (QCEW) data to calculate the corresponding or county or regional Location Quotients (LQs).

LQs are a means of indicating a geography's concentration of a specific measure relative to a larger area that the chosen location is within. An industry's share of an area's total employment is divided by the industry's share of total employment of the larger area. The result is a ratio where a value less than 1.0 indicates lower than average concentration of that industry's employment in the sub-area, and a value larger than 1.0 indicates above average concentration of industry employment.

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