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Industrial Analysis

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

October 2014

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

Overview

Seasonally adjusted employment spiked in September as Minnesota added 7,200 jobs (0.3 percent) over the month. This increase comes even after August employment was revised upward, adding 2,700 jobs to the preliminary estimate to come in at 2,827,500. Significant seasonal growth occurred in Professional and Business Services (up 4,100 or 1.2 percent), Leisure and Hospitality (up 3,900, 1.6 percent), and Other Services (up 1,300, 1.1 percent) among other supersectors. The only supersectors to show losses were Mining and Logging (down 200, 2.6 percent), Financial Activities (down 400, 0.2 percent), and Government (down 4,200, 1.0 percent). Private employers as a group added 11,400 jobs (0.5 percent) as goods producers and service providers both grew by 0.3 percent (1,100 and 6,100 jobs, respectively). Annually, the state has gained 45,098 nonfarm jobs (1.6 percent). There was annual employment growth in every supersector except Financial Activities which lost 1,752 jobs (1 percent) over the year.

Mining and Logging

Employment in the Mining and Logging supersector was down slightly in September, giving back some of their large increase from August to settle at 7,400, down 200 jobs or 2.6 percent. For the year Mining and Logging has gained 541 jobs or 7.5 percent.

Construction

Construction employment jumped slightly in September, adding 200 jobs (0.2 percent) over August estimates. Employment remains strong on an annual basis as well, growing by 6,996 (6.1 percent). Annual growth is largely from big increases in Heavy and Civil Engineering Construction (up 3,688 or 19.7 percent) and Specialty Trade Contractors (up 5,096, 7.2 percent).

Manufacturing

Employment levels in Manufacturing grew in September as the supersector added 1,100 jobs (0.3 percent) since August. The increase came entirely from a strong month for Nondurable Goods Manufacturing (up 1,200 jobs, 1.1 percent) as Durable Goods employment was largely static, losing 100 jobs (0.0 percent). On the year, Manufacturing employment continues to grow, up 10,376 jobs (3.3 percent) over the past 12 months. Durable and Non-Durable goods manufacturing have both shown significant job growth, up 4.2 and 1.9 percent, respectively.

Trade, Transportation, and Utilities

Employment in Trade, Transportation, and Utilities was up slightly in September, growing by 300 jobs (0.1 percent). Small seasonally adjusted losses in Retail Trade (down 400, 0.1 percent) and in Transportation, Warehousing, and Utilities (down 200, 0.2 percent) were offset by the addition of 900 jobs (0.7 percent) in Wholesale Trade. On the year, employment in the supersector is up 1,007 jobs (0.2 percent) as gains in Wholesale Trade (1,391, 1.1 percent) again made up for losses in Retail Trade (down 860, 0.3 percent), with Transportation, Warehousing, and Utilities also up slightly, adding 476 jobs (0.5 percent).

Information

Information employment was unchanged in September, remaining level at 54,500. For the year, the supersector remains up slightly, adding 851 jobs (1.6 percent) over September 2013. This is in spite of significant employment declines in the two published component industry groups, as Publishing Industries (except Internet) lost 685 jobs (3.2 percent) and Telecommunications lost 165 jobs (1.2 percent).

Financial Activities

Financial Activities employment continued its seasonally adjusted decline in September, losing 400 jobs (0.2 percent) on the month. The decline was split evenly between the two component industries, Finance and Insurance (down 0.1 percent) and Real Estate and Rental and Leasing (down 0.5 percent), which both lost 200 jobs. Employment in the supersector is also down for the year, off 1,752 jobs (1.0 percent) from September 2013.

Professional and Business Services

Professional and Business Services added a significant number of jobs in September as employment grew by 4,100 (1.2 percent) over August estimates on the strength of 2,700 additional jobs in Professional, Scientific, and Technical Services (1.9 percent) and 1,200 jobs in Administrative and Support Services (0.9 percent). Annually, employment grew by 11,161 (3.2 percent) with increases in every major component industry group. The largest numerical increase came in Professional, Scientific, and Technical Services (up 5,628, 4.2 percent) and the largest proportional increase was in Services to Buildings and Dwellings (up 3,877, 13.1 percent).

Educational and Health Services

Employment in Educational and Health Services was up by 1,100 (0.2 percent) in September, buoyed by increases in both Educational Services (up 100, 0.1 percent) and Health Care and Social Assistance (up 1,000, 0.2 percent). For the year, the supersector's employment was up 8,022 (1.6 percent) on the backs of increases in Ambulatory Health Care Services (up 4,804, 3.5 percent), Social Assistance (up 2,841, 3.6 percent), and Elementary and Secondary Schools (up 1,218, 5.9 percent).

Leisure and Hospitality

Employment in Leisure and Hospitality displayed strong growth in September as the supersector added 3,900 jobs (1.6 percent). The increase came entirely in Accommodation and Food Service, which added 4,300 jobs (2.0 percent) as the other component sector, Arts, Entertainment, and Recreation, lost 400 jobs (1.0 percent). Annually, Leisure and Hospitality employment is up 4,901 (1.9 percent), with growth similarly focused in Accommodation and Food Services, and more specifically in Food Services and Drinking Places, which added 6,755 jobs (3.6 percent), representing the lion's share of the supersector's annual growth.

Other Services

Other Services employment grew sharply in September; 1,300 jobs (1.1 percent) were added. The supersector has not seen a month of more dramatic seasonally adjusted growth since July 2003 when 1,400 jobs were added. The annual growth is less extreme, with the supersector adding just 678 jobs (0.6 percent) since September 2013, the majority of that growth coming in Religious, Grantmaking, Civic, Professional, and Similar Organizations.

Government

Government employers shed 4,200 jobs (1.0 percent) in September, with Federal employers holding steady and State and Local Government losing 1,600 and 2,600 jobs, respectively. Annually, Government employment is up slightly, with 2,347 more jobs (0.6 percent) than in September 2013. Most of the movement appears to be coming in Education. Local Government Educational Services has added 5,332 jobs (4.2 percent) making up for a loss of 3,016 (4.7 percent) in State Government Educational Services.


Seasonally Adjusted Nonfarm Employment (in thousands)
Industry September
2014
August
2014
July
2014
Total Nonagricultural 2,834.7 2,827.5 2,818.7
Goods-Producing 435.4 434.3 430.6
Mining and Logging 7.4 7.6 7.3
Construction 110.2 110.0 107.7
Manufacturing 317.8 316.7 315.6
Service-Providing 2,399.3 2,393.2 2,388.1
Trade, Transportation, and Utilities 514.1 513.8 514.2
Information 54.5 54.5 54.2
Financial Activities 179.0 179.4 180.2
Professional and Business Services 359.6 355.5 353.5
Educational and Health Services 500.5 499.4 497.5
Leisure and Hospitality 255.1 251.2 250.0
Other Services 118.7 117.4 117.2
Government 417.8 422.0 421.3
Source: Department of Employment and Economic Development, Current Employment Statistics, 2014.



Bar graph-Minnesota Employment Growth, September 2013 to September 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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