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Industrial Analysis

by Nick Dobbins
nicholas.dobbins@state.mn.us

December 2014

Monthly analysis is based on seasonally adjusted employment data.
Yearly analysis is based on unadjusted employment data.*

Overview

Seasonally adjusted employment in Minnesota showed strong growth in November, with the state adding 6,600 jobs (0.2 percent) over October estimates. This marks the fourth straight month of seasonally adjusted increases in the state. Supersectors with the most dramatic monthly growth included Financial Activities (up 3,100 or 1.7 percent), Professional and Business Services (up 1,700, 0.5 percent), Leisure and Hospitality (6,100, 2.4 percent), and Government (1,700, 0.4 percent). Significant declines occurred in Construction (down 3,500, 3.1 percent) and Trade, Transportation, and Utilities (down 3,400, 0.7 percent). On an annual basis Minnesota has added 51,065 jobs (1.8 percent) since November 2013. Growth continues to be spread among a mix of industries, although in a change from October estimates, Other Services (down 391 or 0.3 percent) joined Financial Activities (down 795 or 0.4 percent) as the only supersectors to lose jobs on the year. Supersectors to add a large number of employees included Manufacturing (up 10,964, 3.5 percent), Professional and Business Services (up 14,662, 4.2 percent), Educational and Health Services (up 9,620, 1.9 percent), and Leisure and Hospitality (up 6,248, 2.6 percent).

Mining and Logging

Employment grew in November, adding 200 (2.7 percent) over October estimates for a total of 7,700 jobs. Mining and Logging is also performing well on a yearly basis, up 601 jobs (8.5 percent) since November 2013.

Construction

Seasonally adjusted employment declined in November, dropping 3,500 jobs (3.1 percent) from October estimates. This decline is likely in part from the earlier arrival of winter weather this year, as the industry is particularly susceptible to seasonal effects. Annually, Construction has added 2,060 jobs (1.9 percent) with growth in Specialty Trade Contractors (up 3,192, 4.6 percent), Heavy and Civil Engineering Construction (up 1,158, 7.1 percent), and Residential Building Construction (up 561, 5.1 percent). Construction of Buildings employment in general, however, is down 2,290 (9.3 percent) despite the growth in Residential Building Construction.

Manufacturing

Employment increased by 600 jobs (0.2 percent) over October estimates with all of that growth coming in the Durable Goods sector (up 1,100, 0.5 percent). On the other side of the industry, Nondurable Goods Manufacturing shed 500 jobs (0.4 percent) in November. Annually, Manufacturing added 10,964 jobs (3.5 percent). Growth followed a similar pattern to the monthly changes, with Durable Goods adding 10,388 jobs (5.3 percent) which comprised most of the supersector's annual growth. The Durable Goods component sector that added the most jobs was once again Fabricated Metal Product Manufacturing which is up 2,065 (4.9 percent) for the year. The Nondurable Goods Manufacturing sector added 576 jobs (0.5 percent) for the year.

Trade, Transportation, and Utilities

Trade, Transportation, and Utilities employment was down 3,400 (0.7 percent) in November, with job losses in Wholesale Trade (down 1,700 or 1.3 percent) and Retail Trade (down 2,500 or 0.9 percent) swamping gains in Transportation, Warehousing, and Utilities which added 800 jobs (0.8 percent) in November. Annually, the supersector has added 2,440 jobs (0.5 percent). Most of that increase has come in Transportation, Warehousing, and Utilities which is up 2,877 jobs (3.0 percent) with its component sectors Utilities (up 411 jobs or 3.1 percent) and Transportation and Warehousing (up 2,466 or 3 percent) showing significant annual job gains.

Information

Employment in the Information supersector dropped slightly in November, shedding 200 jobs (0.4 percent) on the month. Employment in the supersector is largely static for the year, up just 37 jobs (0.1 percent) over November 2013. Once again, the two published component sectors have lost employment, as Telecommunications is down 332 jobs (2.5 percent) and Publishing Industries (except Internet) is down 715 (3.4 percent).

Financial Activities

Seasonally adjusted employment reversed course in November, adding 3,100 jobs (1.7 percent). This is the first monthly increase of more than 100 jobs in the supersector since March. Both component sectors contributed to the growth, with Finance and Insurance adding 1,300 jobs (0.9 percent) and Real Estate and Rental and Leasing adding 1,800 (4.5 percent). The supersector is also making progress on an over-the-year basis. It was down just 795 jobs (0.4 percent) from November 2013, compared to a decline of 3,400 jobs from October 2013 to October 2014.

Professional and Business Services

The supersector added 1,700 jobs (0.5 percent) in November, with increases in Administrative and Support and Waste Management and Remediation Services (up 2,100 or 1.6 percent) overcoming smaller job losses in Professional, Scientific, and Technical Services and in Management of Companies and Enterprises. For the year the supersector has added 8,338 jobs (4.1 percent). The largest employment growth occurred in the Administrative and Support and Waste Management and Remediation Services sector (up 4,854 or 3.6 percent) with most of that increase coming from Services to Buildings and Dwellings (up 2,987, 10.5 percent).

Educational and Health Services

Employment in Educational and Health Services grew in November, adding 1,300 jobs (0.3 percent) over October estimates. The increase was split proportionally between the component sectors, with Educational Services adding 200 jobs and Health Care and Social Assistance adding 1,100. Annually, Educational and Health Services has added 9,620 jobs (1.9 percent) with Educational Services growing by 3,402 jobs (4.8 percent) and Health Care and Social Assistance adding 6,218 (1.4 percent).

Leisure and Hospitality

Employment in Leisure and Hospitality increased sharply in November as the supersector added 6,100 jobs (2.4 percent) seasonally adjusted. Accommodation and Food Services had the lion's share of that growth, adding 5,000 jobs (2.3 percent), although Arts, Entertainment, and Recreation also added 1,100 (2.8 percent) for the month. On an annual basis, employment was up 6,248 (2.6 percent). Nearly all of that growth came from Accommodation and Food Service which added 6,233 jobs (3.0 percent) thanks to strong employment growth in Food Services and Drinking Places (up 4,500, or 2.5 percent) and Limited-Service Eating Places (up 3,534, or 4.7 percent).

Other Services

Employment in the Other Services supersector shrank by 1,000 jobs (0.8 percent) in November. This drop came on the heels of two consecutive months of dramatic growth. Annually, Other Services has lost 391 jobs (0.3 percent), with most of that decline coming in Personal and Laundry Services (down 350 jobs, 1.2 percent).

Government

Government employment was up 1,700 jobs (0.4 percent) in November, with growth in all three component sectors. On the year, Government employers added 5,619 jobs (1.3 percent) with a large majority of them coming from Local Government (up 5,224 or 1.8 percent).


Seasonally Adjusted Nonfarm Employment (in thousands)
Industry November 2014 October 2014 September 2014
Total Nonfarm 2,854.0 2,847.4 2,837.5
Goods-Producing 436.5 439.2 435.7
Mining and Logging 7.7 7.5 7.4
Construction 107.8 111.3 110.5
Manufacturing 321.0 320.4 317.8
Service-Providing 2,417.5 2,408.2 2,401.8
Trade, Transportation, and Utilities 516.4 519.8 514.1
Information 54.7 54.9 54.8
Financial Activities 180.7 177.6 178.3
Professional and Business Services 359.3 357.6 358.9
Educational and Health 508.2 506.9 501.8
Leisure and Hospitality 258.9 252.8 255.4
Other Services 118.9 119.9 118.7
Government 420.4 418.7 419.8
Source: Department of Employment and Economic Development,
Current Employment Statistics, 2014.



Bar graph-Minnesota Employment Growth-November 2013 to November 2014


* Over-the-year data are not seasonally adjusted because of small changes in seasonal adjustment factors from year to year. Also, there is no seasonality in over-the-year changes.

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