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Industrial Analysis

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

May 2016

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

Overview

Minnesota added a seasonally adjusted 15,600 jobs (0.5 percent) in April. The increases were the largest for the state since September of 2013. The increase of 0.5 percent also represented the largest proportional growth of any state in the country. Increases were spread across a number of supersectors, with the largest coming in Professional and Business Services (6,700, 1.9 percent). Over the year the state added 31,527 jobs (1.1 percent). All of the gains came from the private sector (up 32,498 or 1.3 percent) as Government employers lost 971 jobs (0.2 percent). Good Producers added 2,964 jobs (0.7 percent) on the year, while Service Providers added 28,563 (1.2 percent).

Mining and Logging

Employment in the Mining and Logging supersector saw some improvement again in April, adding 100 seasonally-adjusted jobs (1.7 percent). This was the second straight month of job growth for the troubled industry group. Annually, the supersector is still in a significant hole, down 1,618 jobs (22.9 percent) from April of 2015. However, as some mining operations are scheduled to start running again later in the coming months, there may be additional improvement to the situation on the horizon.

Construction

Employment in Construction was up by 1,200 (1 percent) in April. Annually, the supersector added 2,701 jobs (2.5 percent). Specialty Trade Contractors once again led the way, adding 2,616 jobs (3.7 percent) on the year, while Construction of Buildings was up 76 (0.3 percent), and Heavy and Civil Engineering added just 9 jobs (0.1 percent).

Manufacturing

Manufacturers added 1,900 jobs (0.6 percent) in April. Non-Durable Goods Manufacturing actually shed jobs, off by 300 (0.3 percent) from March estimates, which left Durable Goods Manufacturing (up 2,200 or 1.1 percent) to supply all of the supersector’s growth. Over the year Manufacturing added 1,881 jobs (0.6 percent). While initial estimates had Manufacturing in the black last month as well, those estimates were revised downward, and April became the first time since 2015 that the supersector saw annual growth. Both Durable and Non-Durable Goods Manufacturers contributed to the growth, adding 868 jobs (0.4 percent) and 1,013 jobs (0.9 percent) respectively. Food Manufacturing was the primary driver of growth among Non-Durable Goods Manufacturers, as the sector added 2,127 jobs (4.7 percent) over April 2015 estimates.

Trade, Transportation, and Utilities

Employment in Trade, Transportation, and Utilities was up by 2,800 (0.5 percent) in April. Retail Trade showed the most growth, adding 2,300 jobs (0.8 percent) while Transportation, Warehousing, and Utilities added just 600 jobs (0.6 percent), and Wholesale Trade employment dipped slightly, losing 100 jobs (0.1 percent). Since April of 2015, the supersector added 4,820 jobs (0.9 percent). Almost all of that growth came from Retail Trade, which added 7,421 jobs (2.6 percent), with Food and Beverage Stores growing by 1,448 (2.9 percent). Wholesale Trade lost 2,616 jobs (2 percent), and Transportation, Warehousing, and Utilities employment was flat, adding just 15 jobs (0 percent).

Information

The Information supersector lost 400 jobs (0.8 percent) in April. Over the year, employment in the supersector was off by 1,481 (2.9 percent). Only about 400 of the jobs included in that loss are among the published component sectors, with Publishing Industries (except Internet) down by 302 jobs (1.5 percent) and Telecommunications down by 154 (1.2 percent). Unpublished component subsectors include Motion Picture and Sound Recording Industries, Broadcasting (except Internet), and Data Processing, Hosting, and Related Services.

Financial Activities

The Financial Activities supersector added 300 jobs (0.2 percent) in April. Finance and Insurance added 200 jobs (0.1 percent) while Real Estate and Rental and Leasing chipped in an additional 100 (0.2 percent). Over the year the supersector added 2,638 jobs (1.5 percent). Finance and Insurance added 1,226 (0.9 percent), with Insurance Carriers driving that increase (up 1,629, 3.7 percent). The other component sector, Real Estate and Rental and Leasing, added 1,412 jobs or 3.7 percent.

Professional and Business Services

Professional and Business Services was the big growth driver this month, as the supersector added 6,700 jobs (1.9 percent) over March estimates. The lion’s share of those jobs were in Administrative and Support and Waste Management and Remediation Services, a wide-ranging sector that includes temporary help services, facilities management, travel arrangement, and waste management services, among others. The sector added 6,000 jobs in April, a change of 4.6 percent from March estimates. Annually, the Professional and Business Services supersector added just 2,686 jobs (0.8 percent), which is still a large improvement over March’s over-the-year growth of 0.1 percent. April’s growth comes entirely from Professional, Scientific, and Technical Services, which added 5,224 jobs (3.6 percent), while Management of Companies and Enterprises and Administrative and Support and Waste Management and Remediation Services both lost jobs on the year.

Educational Services

April employment in Educational and Health Services was up by 1,300 jobs (0.2 percent), with Health Care and Social Assistance accounting for all of the gains (up 1,600 or 0.4 percent), while Educational Services shed 300 jobs (0.4 percent). Over the year the supersector added 17,801 jobs (3.5 percent), with growth in both major component sectors. Educational Services added 5,008 jobs (7.1 percent), while Health Care and Social Assistance, buoyed by the addition of 10,879 jobs in Ambulatory Health Care Services, added 12,793 jobs (2.9 percent).

Leisure and Hospitality

Leisure and Hospitality added 1,500 jobs (0.6 percent) in April, as Accommodation and Food Services employment swelled with an additional 2,100 jobs, a change of 1 percent over March estimates. Annually, the supersector added 2,907 jobs (1.1 percent), with the growth again coming from Accommodation and Food Services (up 3,751 or 1.8 percent) as Arts, Entertainment, and Recreation contracted (down 844 jobs or 2.2 percent).

Other Services

Employment in the Other Services supersector was up by 500 (0.4 percent) in April, breaking a streak of three straight months with job losses. Over the year Other Services added a paltry 163 jobs (0.1 percent), as gains in Repair and Maintenance and Religious, Grantmaking, Civic, Professional, and Similar Organizations were enough to offset small job loss in Personal and Laundry Services.

Government

Government employment was off by 300 jobs (0.1 percent) in April, primarily from a loss of 300 (0.9 percent) in Federal Government. Annually, Government employers lost 971 jobs (0.2 percent). State Government was responsible for most of that loss, down 1,483 jobs (1.4 percent) thanks to a loss of 2,260 (3.4 percent) in State Government Educational Services.

Table 1
Seasonally Adjsuted Nonfarm Employment (in thousands)

Industry

Apr-16

Mar-16

Feb-16

Total Nonfarm                          

 2,891.8

 2,876.2

 2,879.4

Goods-Producing

 447.3

 444.1

 443.9

Mining and Logging

 6.1

 6.0

 5.8

Construction                           

 122.4

 121.2

 121.7

Manufacturing                          

 318.8

 316.9

 316.4

Service-Providing                      

 2,444.5

 2,432.1

 2,435.5

Trade, Transportation, and Utilities

 529.2

 526.4

 525.5

Information                            

 49.7

 50.1

 50.2

Financial Activities                   

 184.5

 184.2

 183.9

Professional and Business Services     

 362.3

 355.6

 354.0

Educational and Health Services               

 523.3

 522.0

 522.8

Leisure and Hospitality                

 261.5

 260.0

 263.5

Other Services

 114.8

 114.3

 115.4

Government                             

 419.2

 419.5

 420.2

Source: Department of Employment and Economic Development, Current Employment Statistics, 2016.



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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