Central Oregon Employment Concentrated in Leisure and Hospitality and Construction Industries

by Karla Castillo

March 7, 2017

The Central Oregon region it’s known for being a tourism destination. This is reflected in its industry composition. As of 2015, the industry employment was concentrated in the leisure and hospitality, and construction sectors.

One way to compare a regional economy to a larger geography and to measure the importance of a local industry sector is to measure its employment concentration. The industry location quotient (LQ) measures the concentration of employment in a given industry relative to a larger geography. In general, an LQ of 1.2 or higher represents an industry with a relatively high concentration of employment, while a score of 0.8 or lower indicates low employment concentration.
The bubble chart compares Central Oregon employment concentrations relative to the state in 2015. In Central Oregon, the industries with some degree of specialization in 2015 were construction (1.39 LQ) and leisure and hospitality (1.38 LQ). These industries also had employment growth over the last year. Leisure and hospitality is one of the largest industries in Central Oregon. Industries with less local employment concentration shown by lower LQs included natural resources and mining, professional and business services, and transportation.

A high location quotient is not always good, and a low score is not always bad. Some important things to consider are the change in LQs during a period of time, the size of the region and the nature of the industry. An industry like professional and business services with a relatively low LQ but with high employment growth represents a potential emerging industry.


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