Madison Region Location Quotients

Location quotients (LQs) are used to measure the relative concentration of local employment in a given business sector. LQs larger than 1.0 indicate the region has a higher relative concentration in that sector than the nation as a whole, while LQs less than 1.0 indicate a smaller share of employment than the nation as a whole. Bubble size reflects the industry’s share of employment relative to total regional employment. If an industry has a high LQ and its LQ has experienced growth, that industry is considered to be strong and growing.