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Industrial Analysis

by Nick Dobbins
August 2016

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


Minnesota added 11,300 jobs (0.4 percent) in July on a seasonally adjusted basis. At the same time, June’s estimates were revised upward from 7,300 to 9,700 jobs. The July job gains came primarily from service providers (up 10,900, 0.4 percent) as goods producers added just 400 jobs (0.1 percent). Private sector employers added 10,600 jobs, a 0.4 percent increase over June estimates, while the public sector added 700 jobs or a 0.2 percent increase. Over the year, Minnesota added 44,034 jobs (1.5 percent). Job gains were distributed across industries with goods producers and service providers each growing faster than 1 percent (up 5,029 or 1.1 percent and 39,005 or 1.6 percent, respectively). All of the annual growth came from the private sector, however, as it added 44,219 jobs (1.5 percent) for the year, while government employer’s numbers dipped slightly, off by 185 jobs (0 percent).

Mining and Logging

Employment in the Mining and Logging supersector was flat in July, holding steady at 5,600 jobs. Over the year, the Mining and Logging supersector lost 1,580 jobs or 20.7 percent. That marks eight straight months with over-the-year losses of greater than 10 percent in the supersector and five straight months with losses of more than 20 percent.


Employment in the Construction supersector was up by 600 jobs (0.5 percent) in July on a seasonally adjusted basis. June employment was adjusted upward from a gain of 1,300 to a gain of 2,100. In spite of the consecutive months of growth, the seasonally adjusted employment level still hadn’t fully recovered from May’s steep decline. Annually, Construction employers added 6,050 jobs (4.6 percent). Specialty Trade Contractors led the way with an additional 3,304 new jobs (4 percent), while Heavy and Civil Engineering Construction added 2,430 jobs (11.6 percent), and Construction of Buildings grew by just 316 jobs (1.1 percent).


Manufacturers lost 200 jobs (0.1 percent) in July on a seasonally adjusted basis. Durable Goods manufacturers lost 700 jobs (0.3 percent) while Non-Durable Goods Manufacturers added 500 (0.4 percent). June’s estimate, which had previously been for a gain of just 200 jobs, was adjusted up into a gain of 1,300 jobs, although the supersector is still looking at a net job loss over the past three months. Annually, Manufacturing added 559 jobs (0.2 percent). Following a trend similar to the monthly estimates, Durable Goods Manufacturers shed jobs (down 1,750 or 0.9 percent) while Non-Durable Goods Manufacturers added employment (up 2,309 or 2 percent).The increase in employment among Non-Durable Goods Manufacturers was driven by Food Manufacturing, which added 3,072 jobs (6.6 percent) on the year.

Trade, Transportation, and Utilities

Employment in Trade, Transportation, and Utilities grew by 2,100 (0.4 percent) in July. Wholesale and Retail Trade each added 400 jobs (0.3 and 0.1 percent, respectively). Transportation, Warehousing, and Utilities held the lion’s share of the new jobs, adding 1,300 (1.3 percent) to their total. Annually, the supersector added 6,549 jobs (1.2 percent). Wholesale Trade employment remains on a downward trajectory, as the sector shed 1,796 jobs (1.3 percent) over the year. However, these losses were more than balanced by a gain of 4,229 (1.4 percent) in Retail Trade and a gain of 4,116 (4.3 percent) in Transportation, Warehousing, and Utilities. Within that sector, Utilities lost 87 jobs (0.7 percent) while Transportation and Warehousing added 4,203 (5.1 percent).


The Information supersector added 400 jobs (0.8 percent) in July. It was the first time the supersector had consecutive months of employment growth in over a year. Annually, Information lost 1,525 jobs (2.9 percent). Publishing Industries (except Internet) lost 661 jobs (3.3 percent) while Telecommunications lost 354 (2.8 percent).

Financial Activities

The Financial Activities supersector added 100 jobs (0.1 percent) in July. The Finance and Insurance component added 500 jobs (0.3 percent) just barely outpacing the loss of 400 (1.0 percent) in Real Estate and Rental and Leasing. Over the year, the supersector added 1,836 jobs (1 percent). Mirroring the movement in the monthly levels, the Finance and Insurance sector added 1,960 jobs (1.4 percent) while the Real Estate and Rental and Leasing sector lost 124 (0.3 percent). The gains in Finance and Insurance were largely driven by Insurance Carriers and Related Activities which added 1,289 jobs (1.9 percent).

Professional and Business Services

Professional and Business Services employment was up slightly in July, adding 700 jobs (0.2 percent). This minor movement belied the more dramatic changes in component sectors, as Professional, Scientific, and Technical Services added 2,100 jobs (1.4 percent), and Administrative and Support and Waste Management and Remediation Services lost 1,200 (0.9 percent). Management of Companies and Enterprises shrank as well, off by 200 jobs (0.3 percent) from June estimates. Annually, the supersector added 1,014 jobs (0.3 percent). A loss of 1,662 (1.2 percent) in Administrative and Support and Waste Management and Remediation Services was offset by gains of 1,247 (0.8 percent) and 1,429 (1.8 percent) in Professional, Scientific and Technical Services and Management of Companies and Enterprises, respectively.

Educational and Health Services

Educational and Health Services added 1,700 jobs (0.3 percent) on a seasonally adjusted basis in July. Health Care and Social Assistance added 5,200 jobs (1.1 percent) which helped to balance the sharp drop that came in Educational Services employment (down 3,500 jobs or 4.8 percent). Annually, the supersector added 20,486 jobs (4.1 percent) with growth spread among its component sectors. Private Educational Services added 1,467 jobs (2.4 percent), although its two published component sectors, Elementary and Secondary Schools and Colleges, Universities, and Professional Schools, both lost some jobs. Health Care and Social Assistance continued to drive most of the supersector’s growth, adding 19,019 jobs (4.3 percent), with 12,361 of them coming in Ambulatory Health Care Services, up 8.5 percent.

Leisure and Hospitality

Leisure and Hospitality added 3,400 jobs (1.3 percent) in July, with Arts, Entertainment, and Recreation adding 2,200 jobs (5.4 percent) and Accommodation and Food Services pitching in an additional 1,200 jobs (up 0.5 percent). Annually, the supersector added 10,999 jobs (4 percent) with Arts, Entertainment, and Recreation adding 1,357 jobs (2.8 percent) and Accommodation and Food Services growing by 9,642 jobs (4.3 percent).

Other Services

Employment in Other Services was up by 1,800 (1.6 percent) in July. It was the second straight month of growth for the supersector and the first time it had seen consecutive months of job growth since late 2015. Over the year, the supersector was off by 169 jobs (0.1 percent), with a decline of 280 (0.4 percent) in Religious, Grantmaking, Civic, Professional, and Similar Organizations, which makes up more than half of the supersector’s total employment.


Government employment was up by 700 jobs (0.2 percent) in July, all of which came in State Government as Federal and Local employment was flat. Annually, Government employers lost 185 jobs (0 percent). Local Government shed 488 jobs (0.2 percent), while Federal employers added 269 jobs (0.8 percent) and State added 34 (0 percent).

Seasonally Adjusted Nonfarm Employment (in thousands)
Industry Aug-16 Jul-16 Jun-16
Total Nonfarm 2,901.4 2,902.9 2,891.8
Goods-Producing 441.4 444.3 444.4
Mining and Logging 5.6 5.6 5.6
Construction 119.7 121.6 121.1
Manufacturing 316.1 317.1 317.7
Service-Providing 2,460.0 2,458.6 2,447.4
Trade, Transportation, and Utilities 532.2 529.9 528.0
Information 51.0 50.5 50.1
Financial Activities 183.6 184.3 183.9
Professional and Business Services 357.2 357.4 356.3
Educational and Health 533.1 532.4 530.3
Leisure and Hospitality 265.1 265.8 263.3
Other Services 115.3 116.4 114.5
Government 422.5 421.9 421.0
Source: Department of Employment and Economic Development, Current Employment Statistics, 2016.

bar graph-Minnesota Employment Growth, July 2015 to July 2016

* 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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