The following table provides local and national employment figures for three business sectors. Calculate the location quotients for the auto industry, health care, legal services and identify it as a basic (exporting) or non basic (service) industry. Remember this method requires you to compare the % of total employees in a particular industry in the local economy to the % of employees in that industry nationwide. If the local has a higher % (greater than 1), then it is considered a favorable or exporting industry. For example, for health care locally has 8.33% (25,000/300,000) of the local workforce, while nationally only 1.6% (1,400,000/120,000,000) works in health care. The LQ would be 8.33/1.16 or 7.15 which is greater than 1 and means health care is an exporting (basic) industry. Table for Economic Base, Location Quotients Industry Local City Employment National (USA) Employment % local % national location quotient Health Care 25,000 1,400,000 8.33%_ 1.16%_ 7.15 Legal Services 3,500 2,000,000 ?____ ? ____ ? Auto assembly 10,000 1,500,000 ?____ ?____ ? Total employment Total national employment in the City 300,000 120,000,000
2. The following table provides local and national employment figures for three business sectors. Calculate the location quotients for the auto industry, health care, legal services and identify it as a basic (exporting) or non basic (service) industry. Remember this method requires you to compare the % of total employees in a particular industry in the local economy to the % of employees in that industry nationwide. If the local has a higher % (greater than 1), then it is considered a favorable or exporting industry.
For example, for health care locally has 8.33% (25,000/300,000) of the local workforce, while nationally only 1.6% (1,400,000/120,000,000) works in health care. The LQ would be 8.33/1.16 or 7.15 which is greater than 1 and means health care is an exporting (basic) industry.
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Table for Economic Base, Location Quotients |
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Industry |
Local City Employment |
National (USA) Employment |
% local |
% national |
location quotient |
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Health Care |
25,000 |
1,400,000 |
8.33%_ |
1.16%_ |
7.15 |
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Legal Services |
3,500 |
2,000,000 |
?____ |
? ____ |
? |
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Auto assembly |
10,000 |
1,500,000 |
?____ |
?____ |
? |
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Total employment |
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Total national employment |
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in the City |
300,000 |
120,000,000 |
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