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Economic Development

Description of Data

In the files above, you will find several different ways to represent data for your community. The bubble chart file includes the bubble chart, information on location quotients and compensation.  There is also an industry share pie chart and statistics on nonemployers for each industry.

The Bubble chart is a useful tool to look at both the concentration of industry in your community relative to the state, the change in concentration over time (2001 to 2007) and the quality of jobs (compensation).  The horizontal axis represents the current location quotient for each industry.  This is simply the ratio of the share of  jobs in the particular industry in your county compared to the share of jobs in that same industry but for the entire state. The larger the LQ, the more concentrated the industry is in your county.  LQ >1 are typically called concentrated.  LQ < 1 might indicate a potential gap, or it might simply mean that your county does not need that industry or can not sustain that industry. It is important that you recognize it is a completely objective measure and does not lend itself well to policy suggestions.  The vertical axis shows how the LQ for each industry has changed from 2001 to 2007.  Basically, has the industry grown compared to the rest of the state.  The size of the bubble represents the quality of the job, as measured by average worker compensation.  Thus the larger the bubble, the better paying the job.  The data for each "bubble" is provided in the table below the chart.

Remember that data availability can be a problem, particularly in smaller rural areas. Thus if you don't see an industry that you know exists in your county then you will have to utilize additional sources to fill in the gap.

The pie chart simply represents the share of industry in your community. It is measured as the number of workers in one industry relative to the total number of workers in your county. The final portion of this file provides information on nonemployer statistics.  This is a potential measure of entrepreneurship but far from a great one.  These numbers represent anyone who reported on their business taxes that they did not pay any employees.  This could be a new start-up or it could be someone who is running a side business to reduce their household tax burden.  Be wary of exactly how to use these data.  There are very few alternatives to measuring entrepreneurship, unfortunately.