Location Quotient Calculator
New BLS Web Tool Allows Local Area Comparisons
The Bureau of Labor Statistics (BLS) has added a powerful new tool for
labor market analysis to its web site services: the Location
Quotient Calculator. The new calculator
generates location quotients, a measure that is familiar to regional labor
economists as a way to readily compare the industrial activity levels among
different areas of the country. In general, location quotients are ratios
that compare the concentration of a resource or activity, such as
employment, in a defined area to that of a larger area or base. For example,
location quotients can be used to compare State employment by industry to
that of the nation; or employment in a city, county, metropolitan
statistical area (MSA), or other defined
geographic sub-area to that in the State. The new BLS location quotient
calculator uses a timely data source that is especially rich in
comprehensive industry and area detail BLS's Quarterly Census of
Employment and Wages (QCEW).
With just a few quick selections from the BLS Web form, the user can
specify a base or reference area (usually the United States as a whole) and
a base or reference industry (usually the private sector, all industries),
where industries are classified on a North American Industry Classification
System (NAICS) basis.
The user may choose up to three geographic areas to be compared to the base
area and may choose numerous industries to be compared to the base industry. Users may choose standard
industry lists, such as the NAICS SuperSector, Sector, or SubSector levels,
or they may select any number of broad or narrowly defined NAICS industries
for analysis. This innovative use of QCEW data allows for focused, detailed
industry study at the desired geographic level.
Last Modified Date: March 30, 2005
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