Shift-share analysis is one way to account for the competitiveness of a region's industries and to analyze the local economic base. The underlying purpose of this
analytical tool to is assist local planners and analysts in describing and documenting changes in their local employment in a way that enables them to support business
and community leaders in making sound and informed decisions. This analysis is primarily used to decompose employment changes within an economy over a specific period
of time into mutually exclusive factors. It paints a picture of how well the region's current industries are performing by systematically examining the national, local,
and industrial components of employment change. A shift-share analysis will provide a dynamic account of total regional employment growth that is attributable to growth
of the national economy, a mix of faster or slower than average growing industries, and the competitive nature of the local industries.
Like other analytical economic tools, the shift-share technique is only a descriptive tool that should be used in combination with other analysis to provide a summary of
a region's key employment potential industries. Once completed, the analysis provides a representation of changes in employment growth or decline, and it is useful for
targeting industries that might offer significant future employment opportunities. By interpreting data provided by shift-share, you can explore the advantages your
local area may enjoy, as well as identify growth, or potential growth industries that are worthy of further investigation.