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Industrial Analysis

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

October 2015

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

Overview

Minnesota lost 5,700 jobs (0.2 percent), seasonally adjusted, in September. With the loss, the state gave back nearly all of the estimated 6,000 jobs it added in August. Educational and Health Services, which added 1,800 jobs in August, lost 2,200 (0.4 percent) in September. Other significant decreases occurred in Other Services (down 2,500 or 2.2 percent), Construction (down 1,700, 1.6 percent), and Trade, Transportation, and Utilities (1,900, 0.4 percent). Leisure and Hospitality (up 2,400 or 0.9 percent) and Professional and Business Services (up 1,800, 0.5 percent) added the most jobs on the month, and it was the second consecutive month of significant growth for both supersectors. Over the year, employment in the state was up by 35,242 jobs (1.2 percent). Once again, all of the growth was thanks to service providers (up 37,695 or 1.6 percent), as goods producers lost 2,453 jobs (0.6 percent) on the year, with most of that loss coming from a decline of 2,170 (1.8 percent) in Construction.

Mining and Logging

Employment in Mining and Logging was down by 100 jobs (1.5 percent) in September, following the addition of 600 jobs combined over the previous two months. Employment in Mining and Logging remains down over the year as well, with the supersector off by 429 jobs (5.8 percent) from September 2014.

Construction

Construction employment was down sharply in September as the supersector lost 1,700 jobs (1.6 percent). This was the third straight month of seasonally adjusted job losses in Construction, after the supersector had added 4,600 jobs over the first six months of 2015. Employment in Construction also remains down over the year, losing 2,170 jobs (1.8 percent) since September of 2014. While Residential Building Construction remained up, adding 759 jobs (2.9 percent), Heavy and Civil Engineering Construction lost 1,067 jobs (5.4 percent), and Specialty Trade Contractors lost 1,862 (2.5 percent).

Manufacturing

Manufacturing employment was down slightly in September, with the supersector losing 100 jobs (0 percent) as Durable Goods manufacturers lost 700 jobs (0.3 percent). Non-Durable Goods manufacturers couldn't quite make up the difference, adding just 600 jobs (0.5 percent). Annually, Manufacturing employment remained just barely up, holding on to 146 (0 percent) more jobs than in September 2014. While Durable Goods Manufacturing's performance remains strong annually, up 2,681 jobs (1.3 percent), an annual loss of 2,535 jobs (2.2 percent) in Non-Durable Goods Manufacturing continues to be a drag on the supersector's employment growth.

Trade, Transportation, and Utilities

Employment in Trade, Transportation, and Utilities was down in September, with the supersector losing 1,900 jobs over the month. Both Wholesale and Retail Trade shed jobs (down 1,200 or 0.9 percent and 1,100 or 0.4 percent, respectively), while Transportation, Warehousing, and Utilities added just 400 jobs (0.4 percent). The picture looks better on an annual basis, where the supersector has added 5,312 jobs (1 percent) over the year, with growth in Retail Trade (up 6,670 jobs or 2.3 percent) and Transportation, Warehousing, and Utilities (up 1,261, 1.3 percent). The loss of 2,619 (2 percent) in Wholesale Trade was broad-based, with all three component subsectors (Durable Goods Merchant Wholesalers, Nondurable Goods Merchant Wholesalers, and Wholesale Electronic Markets and Agents and Brokers) losing employment over the year.

Information

The Information supersector lost 500 jobs (0.9 percent) on a seasonally adjusted basis in September. Employment remained down on the year as well, with 357 (0.7 percent) fewer jobs in Information than there were in 2014. Publishing Industries (except Internet) lost 574 jobs (2.8 percent) while Telecommunications lost 243 jobs (1.8 percent).

Financial Activities

The Financial Activities supersector lost 600 jobs (0.3 percent) in September. This marked the first monthly job loss since March, a span during which the supersector added a total of 4,500 jobs. The monthly loss was driven by a drop of 700 jobs (0.5 percent) in the Finance and Insurance sector, while Real Estate and Rental and Leasing added 100 jobs (0.3 percent). Over the year, Financial Activities added 3,744 jobs (2.1 percent), with a gain of 2,858 jobs (2.1 percent) in Finance and Insurance and 886 (2.3 percent) in Real Estate and Rental and Leasing.

Professional and Business Services

Professional and Business Services was one of few bright spots in the state labor market in September, adding 1,800 jobs (0.5 percent) for the month. The growth comes thanks to a large increase in Administrative and Support and Waste Management and Remediation Services, which added 2,400 jobs (1.7 percent). The supersector also performed well over the year, adding 11,109 jobs (3.1 percent), with the addition of 2,127 jobs (1.5 percent) in Professional, Scientific, and Technical Services and 9,740 jobs (7.1 percent) in Administrative and Support and Waste Management and Remediation Services more than covering for the loss of 758 jobs (1 percent) in Management of Companies and Enterprises.

Educational and Health Services

Educational and Health Services lost 2,200 jobs (0.4 percent) in September. Component sector Health Care and Social Assistance dropped 1,300 jobs (0.3 percent) while Educational Services lost 900 (1.3 percent). However, employment remains solidly up over the year, with 13,497 (2.7 percent) more jobs than in September 2014. Most of those jobs came from Health Care and Social Assistance, which added 11,702 jobs (2.7 percent), while the smaller Educational Services sector added 1,795 (also 2.7 percent).

Leisure and Hospitality

Leisure and Hospitality had the best performance of any supersector in September, adding a seasonally adjusted 2,400 jobs (0.9 percent). Accommodation and Food Services added 2,800 jobs (1.3 percent) while Arts, Entertainment, and Recreation lost 400 (0.9 percent). Annually, the supersector added 9,714 jobs (3.7 percent). Arts, Entertainment, and Recreation added 5,536 jobs (13 percent) while Accommodation and Food Services added 4,178 (1.9 percent) in spite of a drop of 1,677 (5.8 percent) in the Accommodation subsector.

Other Services

Other Services lost 2,500 jobs (2.2 percent) in September. The supersector's employment remained down on the year as well, off by 1,615 jobs (1.4 percent) from September 2014. While Repair and Maintenance added jobs (up 628 or 2.9 percent), Personal and Laundry Services lost 1,070 jobs (3.7 percent), and Religious, Grantmaking, Civic, Professional, and Similar Organizations lost 1,173 (1.9 percent).

Government

Government employers lost 300 jobs (0.1 percent) in September, with all of that decline coming from State Government, which shed 2,100 jobs (2.1 percent). Local Government added 1,700 jobs (0.6 percent), and Federal Government employers added 100 (0.3 percent). For the year, Government employment is down by 3,709 jobs (0.9 percent).


Seasonally Adjusted Nonfarm Employment
Industry Sep-15 Aug-15 Jul-15
Total Nonfarm 2,856.4 2,862.1 2,856.1
Goods-Producing 426.8 428.7 429.0
Mining and Logging 6.7 6.8 6.5
Construction 106.5 108.2 108.4
Manufacturing 313.6 313.7 314.1
Service-Providing 2,429.6 2,433.4 2,427.1
Trade, Transportation, and Utilities 522.7 524.6 524.9
Information 52.4 52.9 52.8
Financial Activities 182.2 182.8 181.1
Professional and Business Services 366.3 364.5 360.3
Educational and Health 513.0 515.2 513.4
Leisure and Hospitality 264.5 262.1 257.9
Other Services 112.0 114.5 114.4
Government 416.5 416.8 422.3
Source: Department of Employment and Economic Development, Current Employment Statistics, 2015.



bar graph-Minnesota Employment Growth, September 2014 to September 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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