Industrial Analysis
by Nick Dobbins
August 2025
Monthly analysis is based on seasonally adjusted employment data.
Yearly analysis is based on unadjusted employment data.
Overview
Total nonfarm employment was down by 4,400 (0.1%) over the month in July, on a seasonally adjusted basis. Goods producers added 800 jobs (0.2%), but this positive growth was more than offset by the loss of 5,200 jobs (0.2%) among service providers. Private sector employers shed 500 jobs (0.0%), and public sector employers lost 3,900 jobs (0.9%).
Over the year Minnesota employers added 35,274 jobs or 1.2%, which was higher than the national growth of 0.9%. Goods producers added 5,053 jobs (1%) and service providers added 30,221 jobs (1.2%). Private sector employment was up by 29,222 jobs (1.1%), and public sector employers added 6,052 jobs (1.5%). Overall, six of 11published supersectors posted positive annual growth in July.
Mining and Logging
Employment growth in Mining and Logging was flat in July, holding at a seasonally adjusted 6,400 jobs for the third consecutive month. Overall, the supersector has lost 200 jobs so far in 2025.
Over the year Mining and Logging employers lost 89 jobs or 1.3%. This was an improvement over June’s 1.6% decline. It was the third consecutive month of annual job losses for the supersector.
Construction
Employment in Construction was up by 1,200 jobs (0.9%) over the month, after adding 1,600 jobs in June. So far in 2025 employment is up by 2,500 jobs over the end of 2024.
On an annual basis Construction employment was up by 4,698 jobs or 3.1%, which was better than the national rate of 1%. All three major component sectors added jobs on the year. Heavy and Civil Engineering Construction was up 12.2% (2,859 jobs), Construction of Buildings was up 4.7% (1,560 jobs), and Specialty Trade Contractors were up 0.3% (279 jobs).
Manufacturing
Manufacturing employers lost 400 jobs (0.1%) over the month on a seasonally adjusted basis in July, after losing 2,100 jobs in June. Th July decline came entirely among Non-Durable Goods Manufacturers, which shed 500 jobs (0.4%), while their counterparts in Durable Goods Manufacturing added 100 jobs (0.0%).
Over the year employment in Manufacturing was up by 444 jobs or 0.1%. Durable Goods Manufacturing was up 273 (0.1%) despite a loss of 1,395 jobs (3.1%) in Computer and Electronic Product Manufacturing. Non-Durable Goods Manufacturing was up by 171 (0.1%) in large part from the addition of 862 jobs (1.6%) in Food Manufacturing. Nationally Manufacturing employment was down by 0.9%.
Trade, Transportation, and Utilities
Employment in Trade, Transportation, and Utilities was down by 2,100 (0.4%) over the month of July. It was the first negative growth since February for the supersector. Retail Trade lost 1,500 jobs (0.5%), and Transportation, Warehousing, and Utilities lost 1,000 jobs (0.8%) while Wholesale Trade employers added 400 jobs (0.3%).
Over the year Trade, Transportation, and Utilities employers added 2,209 jobs or 0.4%. The growth came primarily from Transportation, Warehousing, and Utilities, which added 3,958 jobs or 3.5% with growth in all published component sectors. Retail Trade employers added 90 jobs (0%) while employment in Wholesale Trade was down by 1,839 or 1.4%, with most of that loss coming from Non-Durable Goods Merchant Wholesalers (down 1,482 jobs or 3.3%).
Information
Employment in Information was down by 200 (0.5%) in July. The supersector has not posted positive seasonally adjusted monthly growth since February and has lost 600 jobs in total since the end of 2024.
On an annual basis Information employers lost 1,160 jobs (2.6%) on the year. The loss came largely from unpublished components. Telecommunications lost 404 jobs (4.7%), and Publishing Industries added 160 jobs (0.9%). Nationally employment growth in Information was flat.
Financial Activities
Financial Activities employment was down by 600 (0.4%) over the month. It was the sixth consecutive month of seasonally adjusted declines for the supersector, dating back to February. During 2025, employers in Financial Activities lost 3,000 jobs.
Over the year employment in the supersector was down by 4,475 jobs or 2.3%. This was lower than June’s 2% over-the-year job loss and their lowest annual growth since 2010, extending even past the pandemic related job losses. Every published component sector of Financial Activities lost jobs on the year. Depository Credit Intermediation was off by 1,760 jobs or 3.7%.
Professional and Business Services
Employment in Professional and Business Services was down by 2,300 (0.6%) in July after losing 1,400 jobs in June. The declines came primarily in Administrative and Support and Waste Management and Remediation Services which shed 2,400 jobs (2%). Management of Companies was down 100 jobs (0.1%), and Professional, Scientific, and Technical Services added 200 jobs (0.1%).
Over the year employment in the supersector was down by 744 jobs or 0.2%. This was better than the national decline of 0.3%. The loss came primarily in Administrative and Support and Waste Management and Remediation, which was down by 4,076 jobs or 3.3%, with component Employment Services off by 6.6% (2,955 jobs). Professional, Scientific, and Technical Services was up 3,583 (2.1%) and Management of Companies and Enterprises down by 251 (0.3%).
Educational and Health Services
Educational and Health Services employers added 5,400 jobs over the month of July, up 0.9%, after losing 3,100 jobs in June. Both components added jobs, with Educational Services up 2,100 (3%) and Health Care and Social Assistance up 3,300 (0.6%).
Over the year the supersector added 30,441 jobs or 5.2%. It was the highest proportional growth of any supersector in the state and outpaced national growth of 3.3%. It was also higher than June’s 4.6% growth in Minnesota. Both components posted large proportional gains, with Educational Services up 5.9% (3,682 jobs) and Health Care and Social Assistance up 5.2% (26,759 jobs).
Leisure and Hospitality
Employment in Leisure and Hospitality was down by 500 (0.2%) in July on a seasonally adjusted basis. It was the second consecutive month of declines for the supersector. Accommodation and Food Services lost 900 jobs (0.4%) while Arts, Entertainment, and Recreation added 400 jobs (0.8%).
On an annual basis Leisure and Hospitality employers added 227 jobs or 0.1%, after being down by 0.1% over the year in June. The July growth was less than the national growth of 1.2%. Arts, Entertainment, and Recreation added 3,573 jobs (6.3%) while Accommodation and Food Services lost 3,346 jobs (1.4%). Component Restaurants and Eating Places lost 3,553 jobs or 2%.
Other Services
Other Services employers shed 1,000 jobs (0.9%) over the month in July. The supersector has posted negative monthly seasonally adjusted growth in four consecutive months.
On an annual basis the supersector lost 2,329 jobs or 2%, while national employment in the supersector was up by 0.9%. All three component sectors lost jobs in Minnesota. Religious, Grantmaking, Civic, Professional, and Similar Organizations shed 1,697 jobs (2.5%). Employment in Personal and Laundry Services was off by 528 jobs (1.9%), and Repair and Maintenance was off by 314 jobs (0.4%).
Government
Employment in Government was down by 3,900 (0.9%) in July. Local Government employers lost 3,500 jobs (1.2%), and State Government employers lost 400 jobs (0.4%). Federal Government employment was flat, holding at 32,800 jobs.
Over the year Government employment was up by 6,052 jobs or 1.5%. This outpaced the national annual growth of 0.7%. Federal employers lost 798 jobs (2.4%), but those losses were overcome by gains at other levels as State Government employers added 2,410 jobs (2.5%), and Local Government employers added 4,440 jobs (1.6%). The Local growth came entirely among non-education employers, which added 7,508 jobs (4.8%) while Local Government Educational Services lost 3,068 jobs (2.6%).
| Minnesota Seasonally Adjusted Nonagricultural Wage and Salary Employment (In Thousands) | |||
|---|---|---|---|
| Industry | Jul-25 | Jun-25 | May-25 |
| Total Nonfarm | 3043.3 | 3047.7 | 3055.7 |
| Goods-Producing | 469.8 | 469 | 469.5 |
| Mining and Logging | 6.4 | 6.4 | 6.4 |
| Construction | 141.5 | 140.3 | 138.7 |
| Manufacturing | 321.9 | 322.3 | 324.4 |
| Service-Providing | 2573.5 | 2578.7 | 2586.2 |
| Trade, Transportation, and Utilities | 538.5 | 540.6 | 539.7 |
| Information | 42.3 | 42.5 | 42.5 |
| Financial Activities | 185 | 185.6 | 186.5 |
| Professional and Business Services | 371.6 | 373.9 | 375.3 |
| Educational and Health Services | 613.7 | 608.3 | 611.4 |
| Leisure and Hospitality | 271.9 | 272.4 | 273.6 |
| Other Services | 115.2 | 116.2 | 117.4 |
| Government | 435.3 | 439.2 | 439.8 |
| Source: Department of Employment and Economic Development, Current Employment Statistics, 2025. | |||