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employment growing by -728 jobs (i.e., -5 percent times the sector's base employment, 14,503, equals - <br />728 jobs). Overall, the national growth component was responsible for a total of -3,329 jobs in this <br />county area. <br />An understandable goal of some local leaders is to make their economy more 'recession proof'. <br />Economies with more employment in government, military and education will experience less <br />fluctuation because those sectors are not directly related to the business cycle. Also, economic sectors <br />that are experiencing more growth will provide larger employment gains to a local economy. <br />2. The Industrial Mix Component <br />Insight into these growing sectors is provided by the second aspect of the shift -share analysis, the <br />industrial mix component. This component is found by calculating the percent growth rate for an <br />economic sector at the national level and subtracting from it the national growth component. Thus, the <br />industrial mix component measures how well an industry has grown, net of effects from the business <br />cycle. <br />Table 2 lists these components for each sector. The highest industrial mix component was 8.7 percent <br />in the Education and Health Services sector, and it was responsible for 1256 jobs (i.e., 8.7 percent times <br />this sector's base employment, 14,503, equals 1256 jobs). If this area's employment were concentrated <br />in these sectors with higher industrial mix components, then the area could expect more employment <br />growth. After adding up across all eleven sectors, it appears that the industrial mix component was <br />responsible for decreasing the area employment by -209 jobs. Thus, the area has a concentration of <br />employment in industries that are decreasing nation -wide, in terms of employment. The majority of <br />these jobs can be attributed to decreases in the Construction sector. <br />Shift -share analysis does not explain why an economic sector has slower or faster growth. Rather, the <br />local development official must use knowledge about the business conditions facing particular industries <br />to understand this. <br />3. The Competitive Share <br />The third and final component of shift -share analysis is called the competitive share. It is the remaining <br />employment change that is left over after accounting for the national and industrial mix components. If <br />a sector's competitive share is positive, then the sector has a local advantage in promoting employment <br />growth. <br />For example, the Education and Health Services sector employment grew by 3.6 percent (from Table 1). <br />Of this 3.6 percent, -5 percent was due to the national growth component and 8.7 percent was due to <br />the industrial mix (from Table 2). This leaves a remainder of 0 percent that is attributable to the local <br />As reported in Table 2, this area's biggest employer, the Education and Health Services sector, had the <br />highest national growth component. The -5 percent national growth component led to this sector's <br />