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Industrial Analysis

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

July 2014

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

Overview

Seasonally adjusted employment increased sharply in June, adding 8,500 jobs (0.3 percent) to settle at 2,822,400 for the month. This comes on the heels of a May increase of 7,200, revised downward from 10,300, giving us back-to-back months of solid job grown for the first time since November-December 2013. Monthly gains were driven by an increase of 9,300 among service providers, as goods producers lost 800 jobs, led by a drop of 900 (0.3 percent) in Manufacturing. Industry groups with strong growth included Trade, Transportation, and Utilities (up 2,200 or 0.4 percent), Educational and Health Services (up 3,500, 0.7 percent) and Government (up 3,900, 0.9 percent). Job growth continues to be strong on an annual basis, with employment up 53,779 (1.9 percent) from June 2013 and all but two major supersectors adding significant employment. Construction employment is up 8,363 (7.6 percent), Professional and Business Services is up 12,452 (3.6 percent), and Educational and Health Services has added 11,153 jobs (2.3 percent). The Other Services industry group saw a steep monthly drop, causing it to fall into a net employment loss for the year (down 1,854, 1.6 percent). It joins Financial Activities (down 1,886 or 1 percent) as the only industry groups with an annual decline in employment.

Mining and Logging

Employment increased in June, adding 200 jobs (2.8 percent) for a total of 7,400 for the month. This is a post-recession high for the supersector, marking its highest employment since January 2001. Employment is also strong on an annual basis, up 564 (7.9 percent) over 2013 levels.

Construction

Employment is down slightly for June, off by 100 jobs (0.1 percent). This dip represents a leveling-off for the supersector following its seasonally adjusted gain of 3,000 jobs in May. Employment remains strong for the year, however, with 8,363 (7.6 percent) more jobs than in June 2013. The largest annual growth within the supersector has come from Heavy and Civil Engineering Construction (up 3,979, 22.3 percent) and Specialty Trade Contractors (4,847, 7.1 percent). Employment in Residential Building Construction is also up for the year (916, 8.4 percent) while Construction of Buildings and Foundation, Structure, and Building Exterior Contractors have lost jobs for the year.

Manufacturing

Manufacturing employment dropped in June, losing 900 jobs (0.3 percent) to settle at 315,000 for the month. Durable Goods Manufacturing added jobs for the fourth straight month (up 500 or 0.2 percent) but those gains were wiped out by a loss of 1,400 jobs (1.2 percent) in Non-Durable Goods Manufacturing. Annually, employment is up 8,415 (2.7 percent) on growth in both the Durable and Non-Durable Goods segments of the supersector (up 3.2 and 1.8 percent, respectively). Subsectors with large annual increases include Fabricated Metal Product Manufacturing (up 1,641 or 3.9 percent), Transportation Equipment Manufacturing (739, 6.6 percent), and Food Manufacturing (1,363, 3 percent).

Trade, Transportation, and Utilities

Trade, Transportation, and Utilities employment displayed healthy growth in June, adding 2,200 jobs (0.4 percent) and rebounding fully from May's 600 job decline. The monthly increase was largely driven by growth in Retail Trade (up 2,600, 0.9 percent) while employment in Wholesale Trade was nearly flat, adding just 100 jobs (0.1 percent) and the Transportation and Warehousing sector shed jobs, down 500 (0.5 percent) in June. On an annual basis, employment in the supersector is up 3,592 (0.7 percent) with growth in all three component sectors. Wholesale Trade employment makes up most of those gains, adding 2,672 jobs (2 percent) since June 2013, thanks to an increase of 2,983 (4.6 percent) among Durable Goods Merchant Wholesalers, which overcame small losses in other component industries. Retail Trade is up 498 (0.2 percent) and Transportation, Warehousing, and Utilities is up 422 (0.5 percent).

Information

Employment was up 500 (0.9 percent) in June for a total of 54,500 jobs. That marks four straight months where employment in Information has either grown or held steady. The supersector has also added employment on an annual basis, up 826 (1.6 percent) since June 2013. Despite this growth, employment in the two available component subsectors, Publishing Industries (except Internet) and Telecommunications, both remain down (1.2 and 0.9 percent, respectively). Unavailable subsectors include Internet Publishing and Broadcasting, Data Processing, Hosting, and Related Services, and Other Information Services.

Financial Activities

Employment grew slightly in June, adding 600 jobs (0.3 percent) and recovering from the small employment loss it suffered in May. The growth was entirely from an increase in the Real Estate and Rental and Leasing sector, which added 1,000 jobs (2.5 percent). This overcame the loss of 400 jobs (0.3 percent) in Finance and Insurance. The small monthly gain was not enough to pull the supersector into annual job gain, as employment remains off, down 1,886 (1 percent) over the past 12 months. An annual decline of 2,479 (1.7 percent) in Finance and Insurance more than overwhelmed the gain of 593 (1.5 percent) in Real Estate and Rental and Leasing.

Professional and Business Services

Employment grew slightly in June, adding 300 jobs (0.1 percent) on the heels of May's strong month of growth. The addition of 1,300 jobs (0.9 percent) in Professional, Scientific, and Technical Services overcame the loss of 900 (0.7 percent) in Administrative and Support and Waste Management and Remediation Services and 100 (0.1 percent) in Management of Companies and Enterprises. The supersector is also showing strong growth on an annual basis, adding 12,452 jobs (3.6 percent) in the last 12 months thanks to increases in Professional, Scientific, and Technical Services (up 4,669, 3.5 percent), Management of Companies and Enterprises (up 2,432, 3.1 percent), and Administrative and Support and Waste Management and Remediation Services (up 5,352, 3.9 percent).

Educational and Health Services

Seasonally adjusted employment rebounded from a down month in May to add 3,500 jobs (0.7 percent) in June. Both component sectors added employment with Educational Services growing 2,100 (3.2 percent) and Health Care and Social Assistance employment increasing by 1,400 (0.3 percent). Annually, the supersector's employment has increased 11,153 (2.3 percent) with growth in both component sectors. Notable subsector changes include a growth of 5,581 (4.1 percent) in Ambulatory Health Care Services and an increase of 2,577 (3.3 percent) in Social Assistance.

Leisure and Hospitality

Employment dropped slightly for the second straight month, losing 300 jobs (0.1 percent) in June because of a decrease of 1,700 (0.8 percent) in Accommodation and Food Services. Employment in the industry group remains strong for the year, however, up 4,254 (1.6 percent) since 2013. Notable among subsectors is a sharp decline in Full-Service Restaurant employment which has dropped 4,909 (5.5 percent) in the past year.

Other Services

Employment was off 1,400 (1.2 percent) in June, giving back all of its May employment gains and more. Annually, the supersector is now losing jobs as well, down 1,854 (1.6 percent) since June 2013. All three component subsectors have lost employment, with the largest numerical and proportional decline in Religious, Grantmaking, Civic, Professional, and Similar Organizations, down 1,662 (2.4 percent).

Government

Employment increased by 3,900 (0.9 percent) in June, with growth of 4,200 (1.5 percent) in Local Government overcoming losses of 100 and 200, respectively, in Federal and State Government. Employment in this supersector remains up for the year as well, with 7,898 (1.9 percent) more jobs than in June 2013. As is the case on a monthly basis, annual declines in Federal and State Government employment were overwhelmed by growth in Local Government (up 10,487, 3.6 percent).



Seasonally Adjusted Nonfarm Employment (in thousands)

Industry June
2014
May
2014
April
2014
Total Nonfarm 2,822.4 2,813.9 2,806.7
Goods-Producing excl. Ag. 431.3 432.1 427.0
Mining and Logging 7.4 7.2 7.1
Construction 108.9 109.0 106.0
Manufacturing 315.0 315.9 313.9
Service-Providing 2,391.1 2,381.8 2,379.7
Trade, Transportation and Utilities 514.7 512.5 513.1
Information 54.5 54.0 53.0
Financial Activities 180.1 179.5 179.4
Professional and Business Services 354.4 354.1 349.3
Educational Services 68.0 65.9 67.4
Leisure and Hospitality 249.3 249.6 251.6
Other Services (Private Only) 117.3 118.7 117.7
Government 419.5 415.6 417.3
Source: Department of Employment and Economic Development, Current Employment Statistics, 2014.


Bar graph-Minnesota Employment Growth


* 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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