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Industrial Analysis

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

December 2015

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

Overview

Minnesota added 7,200 jobs (0.3 percent) on a seasonally adjusted basis in November. October estimates were also revised up and now reflect a 200 job gain over September. The November increase was driven by growth of 3,300 jobs (3.2 percent) in Construction, as well as an increase of 1,000 jobs (0.2 percent) in Government employment. Goods producers added 2,800 jobs (0.7 percent) while service providers added 4,400 (0.2 percent), including the 1,000 new government jobs. Annually, Minnesota added 32,130 jobs (1.1 percent). Private sector service providers represented the entirety of that increase, growing by 36,309 (1.8 percent) while goods producers shed 781 jobs (0.2 percent), and the Government lost 3,398 jobs (0.8 percent) on the year. The largest proportional change came in Mining and Logging, which lost 894 jobs or 12.2 percent from 2014 estimates. The most dramatic increase, both proportionally and numerically, came in Professional and Business Services, which added 12,839 jobs (3.6 percent).

Mining and Logging

Employment in Mining and Logging was flat in November, following two straight months of job losses in the industry. The situation remained dire annually, however, as Mining and Logging had a larger proportional drop than any supersector in the state, shedding 894 jobs (12.2 percent). The situation in Mining and Logging figures to remain volatile for the time being as it continues to struggle with an unfavorable worldwide market for iron, a key segment of Minnesota's mining industry.

Construction

Employment in Construction was up sharply in November as the supersector added 3,300 jobs (3.2 percent). The increase came on the heels of consecutive losses of 1,500 and 2,400 jobs in September and October, helping to push employment back towards its more traditional levels. Annually, Construction employment was up by 1,506 (1.4 percent). Specialty Trade Contractors added 2,017 jobs (2.9 percent) which, in combination with smaller numerical gains in the other component sectors, more than made up for the loss of 1,803 jobs (11 percent) in Heavy and Civil Engineering Construction.

Manufacturing

Manufacturing employment slumped slightly in November, losing 500 jobs (0.2 percent) on the month. The losses came entirely from Non-Durable Goods Manufacturers, who lost 900 jobs (0.8 percent) while Durable Goods Manufacturers added 400 jobs (0.2 percent). That same trend is reflected in the over-the-year estimates, which show Manufacturing off 1,393 jobs (0.4 percent), with growth of 667 jobs (0.3 percent) in Durable Goods unable to make up for the larger loss of 2,060 jobs (1.8 percent) in Non-Durable Goods. The component Food Manufacturing sector was responsible for most of that decline, down 2,066 jobs (4.4 percent), but Paper Manufacturing, and Printing and Related Support Activities also lost significant employment, down 1,031 (3.1 percent).

Trade, Transportation, and Utilities

Trade, Transportation, and Utilities employment was up slightly in November, adding 800 jobs (0.2 percent). The increase came entirely from growth in Transportation, Warehousing, and Utilities, which added 1,600 jobs (1.6 percent) while component sector Retail Trade lost 800 (0.3 percent). Employment in Wholesale Trade was flat in November. Over the year the supersector added 4,703 jobs (0.9 percent). Retail Trade added 4,088 jobs (1.4 percent), and Transportation, Warehousing, and Utilities added 3,265 jobs (3.4 percent), while Wholesale Trade lost 2,650 (2 percent).

Information

Employment in the Information supersector ticked up slightly in November, adding 100 jobs (0.2 percent) after two straight months of losing 400 jobs each. Annually, Information lost 909 jobs (1.7 percent) with declines in both published component sectors, Publishing Industries (except Internet) and Telecommunications.

Financial Activities

The Financial Activities supersector showed a slight increase in employment for November, adding 400 jobs (0.2 percent). Finance and Insurance added 800 jobs (0.6 percent) while Real Estate and Rental and Leasing lost 400 (1 percent). Annually, Financial Activities added 1,652 jobs (0.9 percent). Most of that growth came from Finance and Insurance, which added 1,511 jobs (1.1 percent) on the back of an additional 1,787 jobs in Insurance Carriers and Related Activities.

Professional and Business Services

Professional and Business Services added 900 jobs (0.2 percent) in November, the supersector's fifth straight month of seasonally adjusted growth. Most of that growth came in Professional, Scientific, and Technical Services, which added 2,500 jobs (1.7 percent) while Administrative and Support and Waste Management and Remediation Services lost 1,800 (1.2 percent). Over the year, Professional and Business Services showed more growth than any other supersector, adding 12,839 jobs (3.6 percent). Professional, Scientific, and Technical Services added 5,131 jobs (3.6 percent), and Administrative and Support and Waste Management and Remediation Services added 8,563 (6.2 percent), while Management of Companies and Enterprises lost 855 jobs (1.1 percent).

Educational and Health Services

Educational and Health Services employment was up slightly in November, adding 600 jobs (0.1 percent), with all 600 of those jobs coming in Educational Services (up 0.9 percent) as Health Care and Social Assistance employment was flat. Annually, the supersector boasted a healthy 10,474 job (2.1 percent) increase. The entirety of the annual gain came in Health Care and Social Assistance, as Educational Services lost 634 jobs (0.9 percent). Health Care gains were spread among sectors, with Hospitals adding 2,217 jobs (2.1 percent), Offices of Physicians adding 1,649 (2.5 percent), and the Social Assistance sector accounting for an additional 4,932 jobs (5.9 percent).

Leisure and Hospitality

Leisure and Hospitality added 900 jobs (0.3 percent) in November. Accommodation and Food Services added 1,500 jobs (0.7 percent) while Arts, Entertainment, and Recreation employment dipped by 600 (1.4 percent). Over the year, employment in the supersector was up by 8,106 jobs (3.3 percent). Arts, Entertainment, and Recreation added 2,705 jobs (7.7 percent), and Accommodation and Food Services added 5,401 (2.6 percent).

Other Services

Over the month, employment in Other Services decreased by 0.3 percent for a change of 300 on a seasonally adjusted basis. Employment in Other Services decreased by 0.5 percent to 112,995 or 556 over the year. Most of that loss came in the Religious, Grantmaking, Civic, Professional, and Similar Organizations sector which shed 1,462 jobs, 2.3 percent.

Government

Employment in Government decreased 0.8 percent to 426,408 or 3,398 over the year. Over the month, employment increased 0.2 percent for a change of 1,000 on a seasonally adjusted basis. State Government decreased 2.3 percent or 2,482 over the year. Federal Government increased 1.2 percent or 365 over the year. Local Government decreased 0.4 percent or 1,281 over the year.


Seasonally Adjusted Nonfarm Employment
(in thousands)
Industry Nov-15 Oct-15 Sept-15
Total Nonfarm 2,862.6 2,855.4 2,855.2
Goods-Producing 428.1 425.3 427.1
Mining and Logging 6.4 6.4 6.7
Construction 107.6 104.3 106.7
Manufacturing 314.1 314.6 313.7
Service-Providing 2,434.5 2,430.1 2,428.1
Trade, Transportation, and Utilities 522.9 522.1 522.7
Information 52.2 52.1 52.5
Financial Activities 181.5 181.1 181.7
Professional and Business Services 370.3 369.4 365.8
Educational and Health 512.9 512.3 512.8
Leisure and Hospitality 264.3 263.4 264.8
Other Services 113.1 113.4 111.8
Government 417.3 416.3 416.0
Source: Department of Employment and Economic Development, Current Employment Statistics, 2015.


Bar graph-Minnesota Employment Growth, November 2014 to November 2015


*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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