Shift-Share Analysis

What is a Shift-Share Analysis?

Shift-share analysis provides detailed insights into employment distribution across industries as well as changes in local jobs markets over time--essential information for successful real estate professionals, realtors and economic developers.

This shift-share calculator identifies which employment sectors are growing or declining, as a result of changes in the national economy, the local industry mix, and/or unique regional factors.

Use shift-share analysis to gain a competitive edge in your real estate market analysis by differentiating your market from local, state, and national competition--you close deals faster.

For more on this powerful analysis tool, take a look at this in-depth article.

What is a Basic Employment Sector?

A basic employment sector is defined as any local economic sector in which employment levels are greater than the national average for that sector. In other words, a basic employment sector has a concentration of jobs in that industry and produces more output than is consumed by that local economy.

This excess of output is exported, bringing revenue back into the local economy. Consequently, the industry and jobs within it are part of the community’s economic base.

About National Growth

National growth represents the contribution national employment composition has on local changes in jobs. Not all markets respond equally to national changes in employment characteristics. The national growth is the amount by which the local economy would have grown had it grown at the national rate.

About Industrial Mix

Industrial mix represents industry differences between local and national employment mix. Variations between national and local employment for each industry will be shown as local growth or decline within each industry.

About Regional Shift

Regional shift, sometimes referred to as local share or regional competitive, explains employment by industry which are the result of the unique local market characteristics. Local markets will be growing faster or slower than the national economy. Some markets may show losses in jobs in different industries to other local, regional or national competitors.