Location Quotient of the Annual Establishment Count

Graph interpretation
Los Angeles County has the highest location quotients of the annual establishment count relative to the United States in the following industries: NAICS 4889 Other support activities for transportation, NAICS 7223 Special food services, NAICS 3152 Cut and sew apparel manufacturing, NAICS 7115 Independent artists, writers, and performers, and NAICS 6241 Individual and family services.

What is a location quotient?
The Bureau of Labor Statistics developed location quotients (LQs) to measure the concentration level of a particular industry in a region. LQs are ratios that allow an area’s distribution of establishment counts by industry to be compared to a base area’s distribution. In this case, the area is Los Angeles County and the base area is the United States. The industry in Los Angeles County has the same share of its establishment count as the entire United States if the LQ is equal to 1.