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Industrial Analysis

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

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

Overview

Minnesota added 8,900 jobs (0.3 percent) in December on a seasonally adjusted basis. This was on the heels of declines of 3,300 and 2,400 in November and October, respectively. December’s increase was driven largely by Goods Producers, which added a substantial 5,200 jobs (1.2 percent), while Service Providers added 3,700 (0.1 percent). As such, the gains came primarily in the private sector, up 8,700 jobs (0.3 percent) while public sector employment was largely flat, up by just 200 (0.0 percent). Annually the state added 44,200 jobs (1.5 percent). As with the over-the-month estimates, annual growth was proportionally larger among Goods Producers, which grew by 13,960 jobs or 3.2 percent. Service Providers added more total jobs (30,240), although it represented growth of only 1.2 percent on the year. Private sector employment grew by 42,080 jobs (1.7 percent) while public sector employers added 2,120 jobs (0.5 percent).

Mining and Logging

Mining and Logging employment was up by 100 jobs (1.4 percent) in December. This is the second straight month with seasonally-adjusted job growth in the supersector. It represents the highest employment level in Mining and Logging since early 2015. Over the year Mining and Logging employers added 677 jobs (10.8 percent). The supersector had over-the-year employment growth of greater than 8 percent for every month in 2017 after having over-the-year job losses in every month of 2016.

Construction

Employment in Construction was up by 5,700 (4.5 percent) in December. It was the largest proportional over-the-month growth for any supersector in the state. November’s seasonally adjusted estimate was also revised up, from 1,800 to 2,100 jobs added. The supersector lost jobs in every month from July through October. Annually Construction employment was up by 9,394 (8.6 percent). Specialty Trade Contractors drove the growth, adding 8,403 jobs or 11.7 percent. Those marked the largest total and proportional growth of any component sector, although all three component sectors showed over-the-year gains.

Manufacturing

Employment in the Manufacturing supersector was off slightly in December, down 600 or 0.2 percent. It was the second consecutive month of declines in the industry group and came on the heels of five straight months of job growth. Annually Manufacturing employers added 3,889 jobs (1.2 percent). Durable Goods employers added 2,149 jobs (1.1 percent), while Non-Durable Goods employers added 1,740 (1.5 percent).

Trade, Transportation, and Utilities

Trade, Transportation, and Utilities employment was up by 1,800 (0.3 percent) in December. The gains came entirely in Transportation, Warehousing, and Utilities, which added 2,800 jobs (2.8 percent) over the holiday month. It was the largest single-month gain ever for the sector, which had shown seasonal losses in each of the previous three months. Wholesale Trade employers lost 1,000 jobs (0.7 percent), and Retail Trade employment was flat after losing 400 jobs (0.1 percent) in November. Annually the supersector added 7,027 jobs (1.3 percent). All three component sectors grew on the year. Wholesale Trade added 1,931 jobs (1.5 percent), Retail Trade added 3,516 (1.1 percent), and Transportation, Warehousing, and Utilities added 1,580 (1.5 percent).

Information

The Information supersector added 100 jobs (0.2 percent) in December. In November the supersector lost 700 jobs (1.4 percent). Annually Information employment was down by 696 (1.4 percent). It was the fifth consecutive month of over-the-year employment losses of more than 1 percent in the supersector.

Financial Activities

Employment in the Financial Activities supersector was down by 200 (0.1 percent) in December. Finance and Insurance added 100 jobs (0.1 percent), but Real Estate and Rental and Leasing lost 300 (0.9 percent). Annually the supersector lost 808 jobs (0.5 percent). It showed over-the-year job losses in five of the last six months of 2017. As with the monthly declines, the annual job loss was driven by Real Estate and Rental and Leasing which was off by 1,999 (5.9 percent) on the year.

Professional and Business Services

Employment in the Financial Activities supersector was down by 200 (0.1 percent) in December. Finance and Insurance added 100 jobs (0.1 percent), but Real Estate and Rental and Leasing lost 300 (0.9 percent). Annually the supersector lost 808 jobs (0.5 percent). It showed over-the-year job losses in five of the last six months of 2017. As with the monthly declines, the annual job loss was driven by Real Estate and Rental and Leasing which was off by 1,999 (5.9 percent) on the year.

Educational and Health Services

Educational and Health Services employment was up by 2,500 (0.5 percent) in December. The gains came entirely from Health Care and Social Assistance (up 3,100 or 0.7 percent) as Educational Services employers shed jobs on the month (down 600 or 0.9 percent). Over the year the supersector added 12,626 jobs (2.4 percent). As with the monthly change, this growth came entirely from Health Care and Social Assistance, which added 16,200 jobs (3.5 percent), with growth in all four of its component sectors – Ambulatory Health Care, Hospitals, Nursing and Residential Care Facilities, and Social Assistance. Educational Services employment dropped by 3,574 (5.1 percent).

Leisure and Hospitality

Leisure and Hospitality employment was up by 1,800 (0.7 percent) in December. November’s sharp decline was also revised upward slightly, settling in at a loss of 6,600, from a preliminary estimate of -7,500. Both component sectors added jobs In December, as Arts, Entertainment, and Recreation was up by 1,400 (3.4 percent), and Accommodation and Foods Services was up 400 (0.2 percent). Annually employment in the supersector was up by 2,095 (0.8 percent), a marked recovery from November’s over-the-year decline of 0.5 percent and another sign that Minnesota’s seasonal patterns in this industry may have been somewhat askew in 2017. Arts, Entertainment, and Recreation added 3,150 jobs (9.1 percent) while Accommodation and Food Services lost 1,055.

Other Services

Other Services employment was down by 1,100 (0.9 percent) in December, its second consecutive month of seasonally adjusted declines. Annually the supersector added 3,452 jobs (3 percent). All three component sectors – Repair and Maintenance, Personal and Laundry Services, and Religious, Grantmaking, Civic, Professional, and Similar Organizations – grew over the year.

Government

Government employers added 200 jobs (0.0 percent) in December. State Government added 500 (0.5 percent), Local Government lost 300 (0.1 percent), and Federal Government was flat. Annually Government employment was up by 2,120 (0.5 percent). State Government saw the largest total and proportional increases, up by 1,478 or 1.5 percent.

Seasonally Adjusted Nonfarm Employment (in thousands)
Industry Dec-17 Nov-17 Oct-17
Total Nonfarm 2,949.8 2,958.7 2,953.1
Goods-Producing excl. Ag. 450.5 455.7 448.8
Mining and Logging 7.1 7.2 7.0
Construction 121.6 127.3 119.5
Manufacturing 321.8 321.2 322.3
Service-Providing 2,499.3 2,503.0 2,504.3
Trade, Transportation and Utilities 540.4 542.2 539.7
Information 49.4 49.5 50.1
Financial Activities 176.3 176.1 175.8
Professional and Business Services 381.4 380.0 379.2
Educational and Health 540.6 543.1 539.6
Leisure and Hospitality 261.1 262.9 267.7
Other Services (Private Only) 119.6 118.5 121.1
Government 430.5 430.7 431.1
Source: Department of Employment and Economic Development, Current Employment Stiatistics, 2018.


line graph - Minnesota Employment Gorwth

*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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