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What is a location quotient? <br />A location quotient (LQ) is a measurement of concentration in comparison to the nation. An LQ of 1.00 indicates a region has the same concentration of an industry (or <br />occupation) as the nation. An LQ of 2.00 would mean the region has twice the expected employment compared to the nation and an LQ of 0.50 would mean the region has <br />half the expected employment in comparison to the nation. <br />What is a cluster? <br />A cluster is a geographic concentration of interrelated industries or occupations. If a regional cluster has a location quotient of 1.25 or greater, the region is considered to <br />possess a competitive advantage in that cluster. <br />What is separation demand? <br />Separation demand is the number of jobs required due to separations—labor force exits (including retirements) and turnover resulting from workers moving from one <br />occupation into another. Note that separation demand does not include all turnover—it does not include when workers stay in the same occupation but switch employers. <br />The total projected demand for an occupation is the sum of the separation demand and the growth demand (which is the increase or decrease of jobs in an occupation <br />expected due to expansion or contraction of the overall number of jobs in that occupation). <br />What is the difference between industry wages and occupation wages? <br />Industry wages and occupation wages are estimated via separate data sets, often the time periods being reported do not align,and wages are defined slightly differently in <br />the two systems (for example, certain bonuses are included in the industry wages but not the occupation wages). It is therefore common that estimates of the average <br />industry wages and average occupation wages in a region do not match exactly. Annual average wages per worker and employment data are derived from the Quarterly <br />Census of Employment and Wages, provided by the Bureau of Labor Statistics and imputed where necessary. Data are updated through 2022Q2 with preliminary estimates <br />updated to 2022Q3. <br />What is NAICS? <br />The North American Industry Classification System (NAICS) is used to classify business establishments according to the type of economic activity. The NAICS Code comprises <br />six levels, from the “all industry” level to the 6-digit level. The first two digits define the top-level category, known as the “sector,” which is the level examined in this report. <br />FAQ Regarding Data and <br />Methodology <br />31 Washington County <br />Labor Supply Study <br />March 2023