Economic Overview
Loudoun County, Virginia
October 23, 2017
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
2
DEMOGRAPHIC PROFILE ............................................................................................................................................................ 3
EMPLOYMENT TRENDS .............................................................................................................................................................. 5
UNEMPLOYMENT RATE .............................................................................................................................................................. 5
WAGE TRENDS ........................................................................................................................................................................... 6
COST OF LIVING INDEX ............................................................................................................................................................... 6
INDUSTRY SNAPSHOT ................................................................................................................................................................ 7
OCCUPATION SNAPSHOT ........................................................................................................................................................... 9
INDUSTRY CLUSTERS ................................................................................................................................................................ 11
EDUCATION LEVELS .................................................................................................................................................................. 11
GROSS DOMESTIC PRODUCT .................................................................................................................................................... 12
FAQ .......................................................................................................................................................................................... 13
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
3
Demographic Profile In 2016, the population in Loudoun County, Virginia was 385,945. Between 2006 and 2016, the region’s population
grew at an annual average rate of 3.7%.
The region has a civilian labor force of 194,311 with a participation rate of 75.7%. Of individuals 25 to 64 in Loudoun
County, Virginia, 60.5% have a bachelor’s degree or higher which compares with 31.3% in the nation.
The median household income in Loudoun County, Virginia is $123,453 and the median house value is $452,300.
Summary1
Percent Value
Loudoun
County,
Virginia
District of
Columbia USA
Loudoun
County,
Virginia
District of
Columbia USA
Demographics
Population6 — — — 385,945 681,170 323,127,513
Population Annual Average Growth6 3.7% 1.8% 0.8% 11,875 11,049 2,474,760
Median Age2,4 — — — 34.8 33.8 37.2
Under 18 Years4 30.6% 16.8% 24.0% 95,434 100,815 74,181,467
18 to 24 Years4 5.9% 14.5% 9.9% 18,328 87,015 30,672,088
25 to 34 Years4 13.9% 20.7% 13.3% 43,483 124,745 41,063,948
35 to 44 Years4 18.9% 13.4% 13.3% 58,953 80,659 41,070,606
45 to 54 Years4 15.6% 12.6% 14.6% 48,852 75,703 45,006,716
55 to 64 Years4 8.6% 10.6% 11.8% 26,836 63,977 36,482,729
65 to 74 Years4 3.9% 6.1% 7.0% 12,241 36,969 21,713,429
75 Years, and Over4 2.6% 5.3% 6.0% 8,184 31,840 18,554,555
Race: White4 68.7% 38.5% 72.4% 214,471 231,471 223,553,265
Race: Black or African American4 7.3% 50.7% 12.6% 22,710 305,125 38,929,319
Race: American Indian and Alaska Native4 0.3% 0.3% 0.9% 914 2,079 2,932,248
Race: Asian4 14.7% 3.5% 4.8% 46,033 21,056 14,674,252
Race: Native Hawaiian and Other Pacific Islander4 0.1% 0.1% 0.2% 184 302 540,013
Race: Some Other Race4 4.9% 4.1% 6.2% 15,424 24,374 19,107,368
Race: Two or More Races4 4.0% 2.9% 2.9% 12,575 17,316 9,009,073
Hispanic or Latino (of any race)4 12.4% 9.1% 16.3% 38,576 54,749 50,477,594
Economic
Labor Force Participation Rate and Size (civilian
population 16 years and over) 75.7% 68.3% 63.3% 194,311 373,626 158,897,824
Armed Forces Labor Force 0.5% 0.6% 0.4% 1,170 3,446 1,015,464
Veterans, Age 18-64 7.1% 3.6% 5.5% 15,609 16,613 10,750,884
Median Household Income2 — — — $123,453 $70,848 $53,889
Per Capita Income — — — $47,495 $47,675 $28,930
Poverty Level (of all people) 4.0% 18.0% 15.5% 14,047 110,365 47,749,043
Households Receiving Food Stamps 2.9% 14.9% 13.2% 3,273 40,686 15,399,651
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
4
Summary1
Percent Value
Loudoun
County,
Virginia
District of
Columbia USA
Loudoun
County,
Virginia
District of
Columbia USA
Mean Commute Time (minutes) — — — 33.0 29.7 25.9
Commute via Public Transportation 3.5% 37.4% 5.1% 6,351 125,413 7,362,038
Union Membership3 5.0% 9.4% 10.7% — — —
Educational Attainment, Age 25-64
No High School Diploma 5.6% 9.0% 11.8% 11,070 34,405 19,736,243
High School Graduate 12.6% 16.9% 26.4% 24,821 64,388 43,982,863
Some College, No Degree 15.1% 13.4% 21.7% 29,637 50,941 36,187,232
Associate's Degree 6.2% 3.1% 8.8% 12,106 11,920 14,742,654
Bachelor's Degree 36.4% 25.1% 19.9% 71,585 95,648 33,245,950
Postgraduate Degree 24.0% 32.4% 11.4% 47,221 123,351 18,952,103
Housing
Total Housing Units — — — 118,919 303,312 133,351,840
Median House Value (of owner-occupied units)2 — — — $452,300 $475,800 $178,600
Homeowner Vacancy 1.0% 1.8% 1.9% 880 2,138 1,492,691
Rental Vacancy 4.0% 5.5% 6.4% 1,114 9,549 2,949,366
Renter-Occupied Housing Units (% of Occupied Units) 22.9% 58.8% 36.1% 25,971 160,640 42,214,214
Occupied Housing Units with No Vehicle Available (% of
Occupied Units) 2.5% 36.4% 9.1% 2,857 99,554 10,628,474
Social
Enrolled in Grade 12 (% of total population) 1.7% 1.0% 1.4% 5,994 6,773 4,451,334
Disconnected Youth5 0.8% 4.3% 3.0% 138 1,449 518,859
Children in Single Parent Families (% of all children) 15.0% 56.0% 34.8% 15,279 58,080 24,408,909
With a Disability, Age 18-64 4.0% 9.1% 10.3% 8,764 41,560 19,985,588
With a Disability, Age 18-64, Labor Force Participation
Rate and Size 58.8% 41.8% 41.0% 5,151 17,354 8,185,456
Foreign Born 23.3% 14.1% 13.2% 81,766 91,588 41,717,420
Speak English Less Than Very Well (population 5 yrs and
over) 9.9% 5.4% 8.6% 32,086 32,636 25,410,756
Source: JobsEQ® 1. ACS 2011-2015, unless noted otherwise 2. Median values for certain aggregate regions (such as MSAs) may be estimated as the weighted averages of the median values from the composing counties. 3. 2016; Current Population Survey, unionstats.com, and Chmura; county- and zip-level data are best estimates based upon industry-, MSA-, and state-level data 4. Census 2010 5. Disconnected Youth are 16-19 year olds who are (1) not in school, (2) not high school graduates, and (3) either unemployed or not in the labor force. 6. Census 2016, annual average growth rate since 2006
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
5
Employment Trends
As of 2017Q2, total employment for Loudoun County, Virginia was 173,245 (based on a four-quarter moving
average). Over the year ending 2017Q2, employment increased 0.3% in the region.
Employment data are derived from the Quarterly Census of Employment and Wages, provided by the Bureau of Labor Statistics and imputed where necessary. Data are updated through 2016Q4
with preliminary estimates updated to 2017Q2.
Unemployment Rate
The seasonally adjusted unemployment rate for Loudoun County, Virginia was 3.1% as of August 2017. The regional
unemployment rate was lower than the national rate of 4.5%. One year earlier, in August 2016, the unemployment
rate in Loudoun County, Virginia was 3.3%.
Unemployment rate data are from the Local Area Unemployment Statistics, provided by the Bureau of Labor Statistics and updated through August 2017.
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
6
Wage Trends
The average worker in Loudoun County, Virginia earned annual wages of $60,768 as of 2017Q2. Average annual
wages per worker increased 1.7% in the region during the preceding four quarters. For comparison purposes, annual
average wages were $53,284 in the nation as of 2017Q2.
Annual average wages per worker data are derived from the Quarterly Census of Employment and Wages, provided by the Bureau of Labor Statistics and imputed where necessary. Data are
updated through 2016Q4 with preliminary estimates updated to 2017Q2.
Cost of Living Index The Cost of Living Index estimates the relative price levels for consumer goods and services. When applied to wages
and salaries, the result is a measure of relative purchasing power. The cost of living is 50.7% higher in Loudoun
County, Virginia than the U.S. average.
Cost of Living Information
Annual Average Salary Cost of Living Index
(Base US) US Purchasing Power
Loudoun County, Virginia $60,768 150.7 $40,333
District of Columbia $89,460 152.4 $58,701
USA $53,284 100.0 $53,284
Source: JobsEQ® Data as of 2017Q2 Cost of Living per C2ER, data as of 2017q1, imputed by Chmura where necessary.
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
7
Industry Snapshot
The largest sector in Loudoun County, Virginia is Professional, Scientific, and Technical Services, employing 21,668
workers. The next-largest sectors in the region are Retail Trade (18,681 workers) and Construction (16,745). High
location quotients (LQs) indicate sectors in which a region has high concentrations of employment compared to the
national average. The sectors with the largest LQs in the region are Information (LQ = 2.12), Transportation and
Warehousing (1.96), and Professional, Scientific, and Technical Services (1.90).
Employment data are derived from the Quarterly Census of Employment and Wages, provided by the Bureau of Labor Statistics and imputed where necessary. Data are updated through 2016Q4
with preliminary estimates updated to 2017Q2.
Sectors in Loudoun County, Virginia with the highest average wages per worker are Information ($135,104),
Management of Companies and Enterprises ($118,180), and Finance and Insurance ($104,883). Regional sectors
with the best job growth (or most moderate job losses) over the last 5 years are Accommodation and Food Services
(+3,713 jobs), Professional, Scientific, and Technical Services (+2,570), and Educational Services (+2,541).
Over the next 10 years, employment in Loudoun County, Virginia is projected to expand by 37,981 jobs. The fastest
growing sector in the region is expected to be Health Care and Social Assistance with a +3.3% year-over-year rate of
growth. The strongest forecast by number of jobs over this period is expected for Professional, Scientific, and
Technical Services (+7,017 jobs), Health Care and Social Assistance (+4,954), and Construction (+4,853).
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
8
Current Historical Forecast
Four Quarters Ending with
2017q2
Total
Change
over the
Last 5
Years
Average Annual % Change in
Employment 2012q2-2017q2 Over the Next 10 Years
NAICS Industry Empl
Avg.
Annual
Wages
Location
Quotient Empl
Loudoun
County,
Virginia
District of
Columbia USA
Total
Approx
Repl
Demand
Total
Growth
Demand
Avg.
Annual
Growth
Percent
11 Agriculture, Forestry,
Fishing and Hunting 1,018 $19,129 0.41 -5 -0.1% -6.6% 0.8% 377 114 1.1%
21 Mining, Quarrying, and
Oil and Gas Extraction 155 $85,176 0.22 -4 -0.5% -12.4% -4.9% 40 21 1.3%
22 Utilities 665 $71,426 0.72 277 11.3% 1.4% 0.1% 188 154 2.1%
23 Construction 16,745 $64,375 1.75 2,470 3.2% 3.1% 3.2% 3,706 4,853 2.6%
31 Manufacturing 7,253 $92,385 0.51 2,365 8.2% -1.1% 0.8% 1,712 269 0.4%
42 Wholesale Trade 3,305 $76,249 0.49 -15 -0.1% 0.4% 0.9% 791 625 1.7%
44 Retail Trade 18,681 $29,719 1.00 998 1.1% 4.0% 1.3% 6,249 3,350 1.7%
48 Transportation and
Warehousing 14,232 $52,609 1.96 1,189 1.8% 2.7% 2.7% 3,940 1,997 1.3%
51 Information 7,325 $135,104 2.12 -278 -0.7% -1.2% 0.8% 1,862 876 1.1%
52 Finance and Insurance 3,658 $104,883 0.53 605 3.7% -0.4% 1.1% 956 884 2.2%
53 Real Estate and Rental
and Leasing 2,415 $59,098 0.82 136 1.2% 3.1% 1.9% 581 425 1.6%
54 Professional, Scientific,
and Technical Services 21,668 $98,786 1.90 2,570 2.6% 1.8% 2.4% 5,113 7,017 2.8%
55 Management of
Companies and
Enterprises 1,293 $118,180 0.51 91 1.5% 4.8% 2.9% 297 241 1.7%
56
Administrative and
Support and Waste
Management and
Remediation Services
11,145 $41,911 0.99 2,090 4.2% 1.1% 2.6% 2,741 2,451 2.0%
61 Educational Services 15,619 $47,036 1.09 2,541 3.6% 3.4% 0.7% 3,549 3,044 1.8%
62 Health Care and Social
Assistance 13,067 $51,595 0.53 1,754 2.9% 1.2% 2.5% 2,923 4,954 3.3%
71 Arts, Entertainment, and
Recreation 4,575 $69,453 1.33 1,197 6.3% 2.7% 2.3% 1,529 1,019 2.0%
72 Accommodation and
Food Services 16,024 $23,733 1.03 3,713 5.4% 3.0% 3.0% 6,104 3,194 1.8%
81 Other Services (except
Public Administration) 8,140 $38,399 1.06 1,283 3.5% 1.3% -0.2% 2,226 1,652 1.9%
92 Public Administration 5,858 $72,896 0.71 -528 -1.7% -0.4% 0.1% 1,500 752 1.2%
99 Unclassified 402 $61,921 1.15 401 213.2% 2.5% 13.2% 107 88 2.0%
Total - All Industries 173,245 $60,768 1.00 22,850 2.9% 1.3% 1.7% 46,265 37,981 2.0%
Source: JobsEQ® Employment data are derived from the Quarterly Census of Employment and Wages, provided by the Bureau of Labor Statistics and imputed where necessary. Data are updated through 2016Q4
with preliminary estimates updated to 2017Q2. Forecast employment growth uses national projections adapted for regional growth patterns.
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
9
Occupation Snapshot
The largest major occupation group in Loudoun County, Virginia is Office and Administrative Support Occupations,
employing 22,649 workers. The next-largest occupation groups in the region are Sales and Related Occupations
(17,847 workers) and Food Preparation and Serving Related Occupations (15,001). High location quotients (LQs)
indicate occupation groups in which a region has high concentrations of employment compared to the national
average. The major groups with the largest LQs in the region are Computer and Mathematical Occupations (LQ =
2.31), Construction and Extraction Occupations (1.46), and Building and Grounds Cleaning and Maintenance
Occupations (1.30).
Occupation groups in Loudoun County, Virginia with the highest average wages per worker are Management
Occupations ($132,700), Legal Occupations ($121,000), and Computer and Mathematical Occupations ($94,400).
The unemployment rate in the region varied among the major groups from 0.8% among Legal Occupations to 6.8%
among Food Preparation and Serving Related Occupations.
Over the next 10 years, the fastest growing occupation group in Loudoun County, Virginia is expected to be
Healthcare Support Occupations with a +3.6% year-over-year rate of growth. The strongest forecast by number of
jobs over this period is expected for Computer and Mathematical Occupations (+3,524 jobs) and Office and
Administrative Support Occupations (+3,511). Over the same period, the highest replacement demand (occupation
demand due to retirements and workers moving from one occupation to another) is expected in Food Preparation
and Serving Related Occupations (6,373 jobs) and Sales and Related Occupations (6,321).
Occupation Snapshot in Loudoun County, Virginia
Current Historical Forecast
Four Quarters Ending
with 2017q2 2017q2
Total
Change
over the
Last 5
Years
Avg Ann % Chg in Empl
2012q2-2017q2 Over the Next 10 Years
SOC Title Empl
Avg.
Annual
Wages1
LQ Unempl Unempl
Rate Empl
Loudoun
County,
Virginia
District
of
Columbi
a
USA
Current
Online
Job Ads2
Total
Repl
Demand
Total
Growth
Demand
Avg.
Annual
Growth
Percent
11-0000
Management Occupations 12,258 $132,700 1.17 200 1.5% 1,519 2.7% 1.1% 1.5% 716 4,358 2,745 2.0%
13-0000
Business and Financial Operations Occupations
10,124 $82,200 1.14 449 3.0% 1,334 2.9% 0.7% 1.7% 503 2,335 2,584 2.3%
15-0000
Computer and Mathematical Occupations
11,611 $94,400 2.31 347 2.4% 1,170 2.1% 1.3% 2.5% 1,790 1,940 3,524 2.7%
17-0000
Architecture and Engineering Occupations
3,223 $90,700 1.10 99 2.5% 387 2.6% -0.2% 1.0% 146 869 564 1.6%
19-0000
Life, Physical, and Social Science Occupations
1,121 $84,500 0.77 65 3.1% 118 2.2% 0.9% 1.2% 55 359 274 2.2%
21-0000
Community and Social Service Occupations 1,652 $54,700 0.60 24 1.0% 111 1.4% 2.5% 2.0% 130 400 412 2.3%
23-0000 Legal Occupations 1,176 $121,000 0.82 16 0.8% 33 0.6% -0.7% 0.4% 27 253 256 2.0%
25-0000
Education, Training, and Library Occupations
11,119 $58,500 1.14 278 2.3% 1,709 3.4% 2.7% 0.8% 386 2,661 2,344 1.9%
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
10
Occupation Snapshot in Loudoun County, Virginia
Current Historical Forecast
Four Quarters Ending
with 2017q2 2017q2
Total
Change
over the
Last 5
Years
Avg Ann % Chg in Empl
2012q2-2017q2 Over the Next 10 Years
SOC Title Empl
Avg.
Annual
Wages1
LQ Unempl Unempl
Rate Empl
Loudoun
County,
Virginia
District
of
Columbi
a
USA
Current
Online
Job Ads2
Total
Repl
Demand
Total
Growth
Demand
Avg.
Annual
Growth
Percent
27-0000
Arts, Design, Entertainment, Sports, and Media Occupations
3,488 $59,800 1.12 134 3.3% 451 2.8% 1.3% 1.1% 184 1,235 681 1.8%
29-0000
Healthcare Practitioners and Technical Occupations
5,306 $83,700 0.54 85 1.1% 782 3.2% 0.5% 1.7% 386 1,324 1,817 3.0%
31-0000
Healthcare Support Occupations 2,664 $33,700 0.55 119 3.8% 518 4.4% 1.7% 2.2% 200 667 1,137 3.6%
33-0000
Protective Service Occupations 3,881 $46,000 1.04 141 3.4% 701 4.1% 1.2% 1.0% 145 847 736 1.8%
35-0000
Food Preparation and Serving Related Occupations
15,001 $25,500 1.01 943 6.8% 3,434 5.3% 3.6% 2.9% 882 6,373 3,063 1.9%
37-0000
Building and Grounds Cleaning and Maintenance Occupations
7,977 $29,400 1.30 343 5.0% 1,138 3.1% 0.6% 1.0% 199 1,974 1,660 1.9%
39-0000
Personal Care and Service Occupations 6,523 $29,600 0.97 252 4.0% 1,242 4.3% 2.0% 2.1% 403 2,184 1,709 2.4%
41-0000
Sales and Related Occupations 17,847 $43,200 1.00 750 4.3% 1,353 1.6% 2.3% 1.3% 1,808 6,321 3,282 1.7%
43-0000
Office and Administrative Support Occupations
22,649 $40,500 0.88 879 3.7% 2,557 2.4% 1.1% 1.7% 1,078 5,589 3,511 1.5%
45-0000
Farming, Fishing, and Forestry Occupations 375 $34,100 0.33 15 5.4% 22 1.2% 1.1% 1.3% 6 189 42 1.1%
47-0000
Construction and Extraction Occupations 11,269 $48,400 1.46 475 5.7% 1,437 2.8% 2.5% 2.4% 179 2,240 3,230 2.6%
49-0000
Installation, Maintenance, and Repair Occupations
7,573 $53,600 1.15 227 3.7% 727 2.0% 0.9% 1.6% 429 1,931 1,659 2.0%
51-0000
Production Occupations 4,412 $40,500 0.42 181 4.8% 1,045 5.6% 0.4% 1.2% 117 1,211 579 1.2%
53-0000
Transportation and Material Moving Occupations
11,998 $44,200 1.03 441 4.8% 1,061 1.9% 2.1% 2.3% 401 3,569 2,173 1.7%
00-0000 Total - All Occupations 173,245 $54,400 1.00 n/a n/a 22,850 2.9% 1.3% 1.7% 10,189 48,828 37,981 2.0%
Source: JobsEQ® Data as of 2017Q2 unless noted otherwise Note: Figures may not sum due to rounding. 1. Occupation wages are as of 2016 and should be taken as the average for all Covered Employment 2. Data represent found online ads active within the last thirty days in any zip code intersecting or within the selected region; data represents a sampling rather than the complete universe of
postings. Occupation employment data are estimated via industry employment data and the estimated industry/occupation mix. Industry employment data are derived from the Quarterly Census of
Employment and Wages, provided by the Bureau of Labor Statistics and currently updated through 2016Q4, imputed where necessary with preliminary estimates updated to 2017Q2. Wages by
occupation are as of 2016 provided by the BLS and imputed where necessary. Forecast employment growth uses national projections from the Bureau of Labor Statistics adapted for regional
growth patterns.
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
11
Industry Clusters A cluster is a geographic concentration of interrelated industries or occupations. The industry cluster in Loudoun
County, Virginia with the highest relative concentration is Electric/Electronics Mfg. with a location quotient of 2.22.
This cluster employs 4,049 workers in the region with an average wage of $126,483. Employment in the
Electric/Electronics Mfg. cluster is projected to contract in the region about 0.2% per year over the next ten years.
Location quotient and average wage data are derived from the Quarterly Census of Employment and Wages, provided by the Bureau of Labor Statistics, imputed where necessary, and updated
through 2016Q4 with preliminary estimates updated to 2017Q2. Forecast employment growth uses national projections from the Bureau of Labor Statistics adapted for regional growth patterns.
Education Levels
Expected growth rates for occupations vary by the education and training required. While all employment in Loudoun
County, Virginia is projected to grow 2.0% over the next ten years, occupations typically requiring a postgraduate
degree are expected to grow 2.5% per year, those requiring a bachelor’s degree are forecast to grow 2.2% per year,
and occupations typically needing a 2-year degree or certificate are expected to grow 2.3% per year.
Employment by occupation data are estimates are as of 2017Q2. Education levels of occupations are based on BLS assignments. Forecast employment growth uses national projections from the
Bureau of Labor Statistics adapted for regional growth patterns.
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
12
Gross Domestic Product
Gross Domestic Product (GDP) is the total value of goods and services produced by a region. In 2016, nominal GDP
in Loudoun County, Virginia expanded 11.5%. This follows growth of 4.5% in 2015. As of 2016, total GDP in Loudoun
County, Virginia was $23,979,338,000.
Gross Domestic Product data are provided by the Bureau of Economic Analysis, imputed by Chmura where necessary, updated through 2016.
Of the sectors in Loudoun County, Virginia, Professional, Scientific, and Technical Services contributed the largest
portion of GDP in 2016, $3,033,463,000 The next-largest contributions came from Real Estate and Rental and
Leasing ($2,722,380,000); Information ($2,460,472,000); and Finance and Insurance ($2,306,436,000).
Gross Domestic Product data are provided by the Bureau of Economic Analysis, imputed by Chmura where necessary, updated through 2016.
Source: JobsEQ®, http://www.chmuraecon.com/jobseq Copyright ©2017 Chmura Economics & Analytics, All Rights Reserved.
13
FAQ What is a location quotient?
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 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 half the expected employment
in comparison to the nation.
What is replacement demand?
Replacement demand is the number of jobs required due to replacements—retirements and turnover resulting from workers
moving from one occupation into another. Note that replacement demand does not include all turnover—it does not include
when workers stay in the same occupation but switch employers. The replacement demand shown in this report may also be
understated; thus, it can be taken to be a minimum measure of the number of workers who will need to be trained for the
occupation due to replacements. The total projected demand for an occupation is the sum of the replacement demand and
the growth demand (which is the increase or decrease of jobs in an occupation expected due to expansion or contraction of
the overall number of jobs in that occupation).
What is a cluster?
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 possess a competitive advantage in that cluster.
What is the difference between industry wages and occupation wages?
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 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 industry wages and average
occupation wages in a region do not match exactly.
What is NAICS?
The North American Industry Classification System (NAICS) is used to classify business establishments according to the
type of economic activity. The NAICS Code comprises 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.
What is SOC?
The Standard Occupational Classification system (SOC) is used to classify workers into occupational categories. All workers
are classified into one of over 820 occupations according to their occupational definition. To facilitate classification,
occupations are combined to form 23 major groups, 96 minor groups, and 449 occupation groups. Each occupation group
includes detailed occupations requiring similar job duties, skills, education, or experience.
About This Report
This report and all data herein were produced by JobsEQ®, a product of Chmura Economics & Analytics. The information contained herein was obtained from sources we believe to be reliable.
However, we cannot guarantee its accuracy and completeness.