Laiyang is located in the middle of Shandong Peninsula, bordering Haiyang on the east, Laixi on the west, Qixia and Zhaoyuan on the north and Jimo on the south.

The income of the urban and rural residents has been increasing steadily. In 2003, the net income per peasant hit 3,876 yuan with an increase of 7.6%. The per capita governable income urban residents reached 8,537.4 yuan, increased by 6%. The government increased input in education, improving school conditions; strengthened health administration in rural areas, improving medical conditions; speeded up the net construction for CATV and cable casting. The registered unemployment rate was controlled at 0.7% and the reemployment rate hit 83%. 

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