Location Quotients by Number of Employees (2017)
Los Angeles continues to maintain its identity as a creative incubator and producer with its top ten highest Location Quotients being in the Digital Media & Entertainment (DME) and Fashion & Apparel (F&A) Industry Clusters. For example, the number of employees in Teleproduction and postproduction services (DME, NAICS 512191) and number of Cut and saw apparel contractors (F&A, NAICS 315210) in Los Angeles County is more than fifteen times the national average.
What is a Location Quotient?
The Bureau of Labor Statistics developed Location Quotients (LQs) to measure the concentration level of a particular industry, cluster, occupation, or demographic group in a region (Bureau of Labor Statistics, December 2016). LQs are ratios that allow an area’s distribution of employment by industry to be compared to a base area’s distribution. For example, if the LQ is equal to 1 then the industry in Los Angeles County has the same share of its area employment as the entire United States. Industries with high LQs are often what make the regional economy unique (Emsi, October 2011).
NAICS Codes were selected as the industries with the top 100 highest Location Quotient values. In addition, only the NAICS Codes encapsulating the greatest geographic range of that industry counted toward the top 100 (NAICS, n.m. 2018). NAICS Codes were selected regardless of their fit into Propel L.A. or LAEDC Industry Clusters.