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Industrial Analysis

by Nick Dobbins
nicholas.dobbins@state.mn.us
August 2018

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

*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.

Overview

Minnesota employers added 11,200 jobs (0.4 percent) in July on a seasonally adjusted basis although we actually lost a similar number of jobs on an unadjusted basis, as July tends to see sharp employment declines. It was the third consecutive month of gains for the state as summer employment continued to exceed seasonal expectations. The gains were spread across a number of supersectors, with private sector employers adding 8,800 jobs (0.3 percent) while the public sector added 2,400 (0.6 percent). Goods Producers added 1,900 jobs (0.4 percent), and Service Providers added 9,300 (0.4 percent). Over the year the state added 59,931 jobs (2 percent). Goods Producers added 19,971 jobs (3.2 percent), and Service Providers added 44,960 (1.8 percent). Private sector employment was up by 54,917 while public sector employers added 5,014 jobs (1.3 percent).

Mining and Logging

Employment in the Mining and Logging supersector was off by 100 (1.5 percent) in July, down to 6,400. It was the first time that employment in the supersector dipped below 6,500 since August of 2017, as it oscillated between 6,500 and 6,600 in the intervening months. Over the year the supersector added 21 total jobs or 0.3 percent. It was the first month of over-the-year job growth in Mining and Logging since December of 2017.

Construction

The Construction supersector added 500 jobs (0.4 percent) in July on a seasonally adjusted basis. June’s estimate was also revised upward from 1.2 percent to a 1.5 percent over-the-month growth. July was the fourth consecutive month of over-the-month growth for the supersector. Annually Construction employment was up by 5,509 (4.1 percent), one of the stronger over-the-year performances in the state for a supersector. Specialty Trade Contractors led the way, adding 4,342 jobs or 5.1 percent. The component sector with the next largest over-the-year change was Construction of Buildings which was up by 840 jobs or 3 percent. With the exception of April 2018, which had unseasonably cold and wet weather that delayed the start of the construction season, the supersector has shown over-the-year growth consistently since April of 2013.

Manufacturing

Employment in the Manufacturing supersector was up by 1,500 (0.5 percent) in July. Non-Durable Goods Manufacturers added 900 jobs (0.7 percent) while Durable Goods Manufacturers added 600 (0.3 percent). The supersector has shown seasonally adjusted growth in every month of 2018. Over the year, Manufacturers added 9,441 jobs (2.9 percent). Non-Durable Goods Manufacturers added 4,348 jobs (3.6 percent), with 2,086 of those jobs coming in Food Manufacturing. Durable Goods Manufacturers added 5,093 jobs (2.5 percent).

Trade, Transportation, and Utilities

Trade, Transportation, and Utilities employment was up by 2,200 jobs (0.4 percent) in July. Wholesale Trade led the growth, adding 1,100 jobs (0.8 percent), although all three component sectors contributed. Transportation, Warehousing, and Utilities added 800 jobs (0.7 percent), and Retail Trade added 300 (0.1 percent). On an annual basis the supersector added 7,477 jobs (1.4 percent). Wholesale Trade added 2,408 jobs (1.8 percent) thanks to 2,298 new jobs among Durable Goods Wholesalers. Retail Trade added 2,692 jobs (0.9 percent) while Transportation, Warehousing, and Utilities added 2,377 (2.3 percent), almost all of it in Transportation and Warehousing.

Information

Employment in the Information supersector was up by 200 (0.4 percent) in July. It was the second consecutive month of over-the-month growth in the supersector. Annually Information employment was up by 174 jobs (0.3 percent), in spite of both published component sectors losing jobs on the year.

Financial Activities

Financial Activities employment was flat in July, remaining at 180,500 jobs. Finance and Insurance lost 800 jobs (0.5 percent) while their counterparts in Real Estate and Rental and Leasing added 800 jobs (2.3 percent). Annually the supersector lost 212 jobs (0.1 percent). It was one of only two supersectors to lose jobs on the year. Real Estate and Rental and Leasing added 371 jobs (1 percent), but Finance and Insurance lost 583 (0.4 percent). That loss was driven by a decline of 1,459 (2.3 percent) in Credit Intermediation and Related Activities including Central Banks.

Professional and Business Services

Employment in Professional and Business Services was up by 1,400 (0.4 percent). Professional, Scientific, and Technical Services added 800 jobs (0.5 percent), and Administrative and Support and Waste Management and Remediation Services added 800 (0.6 percent) while Management of Companies and Enterprises shed 200 jobs (0.2 percent). Annually the supersector added 5,561 jobs (1.5 percent). Professional, Scientific, and Technical Services led the way, both proportionally and in total jobs added, up by 3,271 or 2 percent. Administrative and Support and Waste Management and Remediation Services added 1,376 jobs (1 percent), thanks to an increase of 3,212 (5.6 percent) in the bellwether Employment Services component sector.

Educational and Health Services

Employment in the Educational and Health Services supersector was up by 2,900 (0.5 percent) on a seasonally adjusted basis in July. Educational Services drove the increase, up 1,900 (2.8 percent), while Health Care and Social Assistance added 1,000 jobs (0.2 percent). Over the year the supersector added 10,836 jobs (2.1 percent). Educational Services employment was up by 5,583 (9.7 percent). Health Care and Social Assistance added 5,253 (1.1 percent) with growth spread across a number of component sectors.

Leisure and Hospitality

Leisure and Hospitality Employment was up by 400 (0.1 percent) in July. Accommodation and Food Services added 1,400 jobs (0.6 percent) while Arts, Entertainment, and Recreation lost 1,000 (2.2 percent). Annually the supersector added 17,023 jobs (5.9 percent). This was the highest proportional over-the-year growth of any supersector in the state. Both component sectors fared well, as Accommodation and Food Services added 13,409 jobs (5.7 percent), and Arts, Entertainment, and Recreation added 3,614 (6.9 percent).

Other Services

The Other Services supersector lost 200 jobs (0.2 percent) in July. The decline broke a streak of four consecutive months of over-the-month job growth in the supersector. Annually Other Services employment was off by 913 (0.8 percent). It was the largest decrease of any supersector, and one of only two supersectors to show over-the-year job losses at all. Employment in all three published component sectors shrank on the year.

Government

Government employment was up by 2,400 (0.6 percent) in July. All three levels of government added jobs, with the most significant gains coming from State Government which added 1,800 jobs (1.8 percent). Annually Government employers added 5,014 jobs (1.3 percent). Both State and Local governments added jobs although Federal employment shrank slightly on the year.


Sesonally Adjusted Nonfarm Employment (in thousands)
Industry Jul-18 Jun-18 May-18
Total Nonfarm                             2,976.8  2,965.6  2,955.7
Goods-Producing excl. Ag.  457.4  455.5  451.8
Mining and Logging  6.4  6.5  6.5
Construction                              123.8  123.3  121.5
Manufacturing                             327.2  325.7  323.8
Service-Providing                         2,519.4  2,510.1  2,503.9
Trade, Transportation and Utilities  543.9  541.7  541.4
Information                               50.6  50.4  49.7
Financial Activities                      180.5  180.5  180.9
Professional and Business Services        378.1  376.7  375.9
Educational and Health                    541.2  538.3  536.6
Leisure and Hospitality                   279.0  278.6  274.4
Other Services (Private Only)  116.7  116.9  116.8
Government                                429.4  427.0  428.2
Source: Department of Employment and Economic Development, Current Employment Statistics, 2018.


Minnesota Employment Growth, July 2017 to July 2018

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