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Employment Concentration in the Ocean State
Insight and Analysis on Rhode Island Industries using
National and Regional Location Quotients

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A state’s economic health is not based solely on the total number of jobs it can generate, but also on where those jobs are and in what concentrations relative to neighboring areas. High concentrations of employment can indicate economic specializations, while low concentrations may signify industry weaknesses. Knowing where these strengths and weaknesses are can have a substantial impact on a state’s economic development policy, workforce development system, and jobseekers looking to maximize their opportunities in the labor market.

This publication, a product of the Rhode Island Department of Labor & Training’s Labor Market Information unit, examines industry location quotients to expand on our understanding of the state’s economy. Location quotients are relatively easy to understand and can be utilized to compare local employment concentrations against those of a larger area. This process helps identify strengths and weaknesses in a local economy by determining if an area has a greater (or lesser) share of industry employment than would be expected based upon the reference economy.

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Rhode Island Department of Labor and Training
Labor Market Information
1511 Pontiac Avenue
Cranston, RI 02920-4407

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