Location Quotient

Location Quotient (LQ) is a measure used to compare the concentration of a particular industry or occupation in a specific area to the national average. An LQ greater than 1 indicates the area has a higher proportion of that industry than the national average, suggesting it may be a regional hub for that sector. Conversely, an LQ less than 1 suggests a lower concentration. LQ helps in understanding local economic strengths, workforce specialization, and guiding economic development strategies. It essentially shows how unique or common an industry is in a given location compared to a broader context.