by Nick Dobbins
Monthly analysis is based on seasonally adjusted employment data. Yearly analysis is based on unadjusted employment data.*
Minnesota added 4,400 jobs (0.1 percent) in June on a seasonally adjusted basis. Additionally, May’s estimate was revised upward from a loss of 7,200 jobs to a loss of just 2,900. Goods producers accounted for 2,900 of the new June jobs (an increase of 0.6 percent) while service providers added 1,500 (an increase of 0.1 percent), with all of that growth coming from public sector service providers. Annually Minnesota added 77,478 jobs (2.6 percent). This represented a sizeable jump in the over-the-year growth rate for the state, as it hadn’t topped 2 percent since early 2013 and sat at just 1.8 percent in May. Goods producers added 12,920 jobs (2.8 percent) on the year after showing annual growth of just 1.6 percent in May. Service providers added 64,558 jobs (2.6 percent) on the year, a notable improvement over the 1.8 percent growth rate it posted in the previous month. Some of this annual growth may be attributable to timing as the comparison month, June of 2016, showed relatively weak growth.
Mining and Logging
The Mining and Logging supersector lost 100 jobs (1.4 percent) in June, giving back the previous month’s gains. After a strong start to 2017, the supersector has lost jobs in two of the past three months although in both cases, the decline was small. Over the year Mining and Logging added 728 jobs (11.4 percent). Given the trends of the previous years in the supersector, this level of annual growth is likely to continue through July before dropping off in August.
Employment in the Construction industry was up by 900 jobs (0.7 percent) in June. While the growth was slight, it represents a return to growth following May’s seasonally adjusted loss of 2,200 jobs. Annually the Construction supersector added 8,022 jobs (6.3 percent). As has been the case of late, Specialty Trade Contractors drove the growth, adding 7,970 jobs (9.9 percent) on the year, with the component Building Equipment Contractors contributing nearly half of those jobs (up 2,612 or 14.1 percent). The Building Construction sector continued to struggle, posting its 13th straight month of over-the-year job losses (down 506 or 1.9 percent).
Manufacturers in Minnesota added 2,100 jobs (0.7 percent) following the loss of 600 jobs in May. June’s growth was split between Durable (up 1,700 or 0.8 percent) and Non-Durable Goods Manufacturing (up 400 or 0.3 percent). Annually Manufacturers in Minnesota added 4,170 jobs (1.3 percent). Durable Goods added 1,077 (0.5 percent), and Non-Durable Goods added 3,093 (2.6 percent). While Non-Durable Goods still contributes the bulk of the supersector’s annual growth, its counterpart may be showing improvement lately. June marked the first month in which Durable Goods had annual growth since March of 2016, and, on a seasonally adjusted basis, the sector gained employment in every month since January.
Trade, Transportation, and Utilities
Trade, Transportation, and Utilities lost 700 jobs (0.1 percent) in June. However, May’s estimate was revised from a loss of 1,900 to a gain of 600, which interrupted what otherwise would have been four consecutive months of negative growth. In June the supersector’s losses came entirely from Wholesale Trade, which was off by 2,400 (1.8 percent), while the other two component sectors (Retail Trade and Transportation, Warehousing, and Utilities) showed smaller additions. Annually the supersector added 7,293 jobs (1.4 percent). Retail Trade added 5,807 (up 1.9 percent), and Transportation, Warehousing, and Utilities added 2,114 (2.1 percent), while Wholesale Trade shed 628 jobs (0.5 percent).
Information employment was off by 600 (1.2 percent) in June. This follows a strong March in which the supersector added 1,100 jobs, with two months of static employment between. Annually the supersector added 798 jobs (1.6 percent), although that growth continues to exist solely in non-published component sectors.
The Financial Activities supersector lost 1,300 jobs (0.7 percent) in June. Finance and Insurance lost 1,000 jobs (0.7 percent) while Real Estate and Rental and Leasing lost 300 (0.9 percent). Financial Activities employment has now declined in each of the past three months and in five of the six months so far in 2017. Annually, however, the supersector’s employment remained in the black, up 1,250 (0.7 percent) from June of 2016. Finance and Insurance was up 2,546 (1.8 percent), while Real Estate and Rental and Leasing lost 1,296 (3.7 percent).
Professional and Business Services
Professional and Business Services added 2,300 jobs (0.6 percent) in June, which is equal to the number of jobs the supersector lost in May. June’s gains came primarily from Professional, Scientific, and Technical Services (up 2,000 or 1.3 percent), but Management of Companies and Enterprises also added jobs (up 600, 0.7 percent). Administrative and Support and Waste Management and Remediation Services, the other component, lost 300 jobs (0.2 percent). Annually the supersector added 10,225 jobs (2.7 percent). All three component sectors added jobs over the year with Professional, Scientific, and Technical Services moving back into the black after having lost jobs over the 12 months that began in May 2016.
Educational and Health Services
Educational and Health Services employment was down by 2,700 jobs (0.5 percent) in June. Educational Services lost 4,100 jobs (5.7 percent), while Health Care and Social Assistance added 1,400 (0.3 percent). Given that the decline came via the education component in early summer, it is possible that some or all of the change was caused by seasonal variations. Over the year the supersector added 24,790 jobs (4.8 percent). Health Care and Social Assistance added 22,542 jobs (5 percent), making up the majority of both the supersector’s growth and its total employment, while Educational Services added 2,248 jobs (3.6 percent).
Leisure and Hospitality
Leisure and Hospitality added 4,500 jobs (1.7 percent) in June. Accommodation and Food Services brought the bulk of that, adding 4,000 jobs (1.8 percent), while Arts, Entertainment, and Recreation added 500 (1.2 percent). Annually the supersector added 8,429 jobs (3 percent). Arts, Entertainment, and Recreation added 2,465 (5.1 percent), while Accommodation and Food Services added 5,964 (2.6 percent).
Other Services lost 1,500 jobs (1.2 percent) in June. Annually the supersector added 2,558 jobs (2.2 percent), with growth in all three component sectors.
Government employment was up by 1,500 jobs (0.4 percent) in June. Federal employment was flat, but State and Local government both added jobs. Annually public sector employers added 9,215 jobs (2.2 percent). State government led the way with 4,887 new jobs, a 5.3 percent change over June of 2016.
|Seasonally Adjsuted Nonfarm Employment (in thousands)
|Mining and Logging
|Trade, Transportation and Utilities
|Professional and Business Services
|Educational and Health Services
|Leisure and Hospitality
|Source: Department of Employment and Economic Development, Current Employment Statistics, 2017.
*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.