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Industrial Analysis

By Nick Dobbins
nicholas.dobbins@state.mn.us
June 2020

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

Overview

Nonfarm employment in Minnesota rebounded in June, adding 84,700 jobs (3.2 percent) on a seasonally adjusted basis as COVID 19-related restrictions were eased slightly. The gains came entirely in service providers (up 85,000 or 3.9 percent) as goods producers lost 300 jobs (0.1 percent). Over the year the state lost 273,776 jobs (9.1 percent). Service providers were off by 243,240 (9.5 percent) while goods producers lost 30,536 jobs (6.4 percent).

Mining and Logging

Mining and Logging employment was flat in June at 5,200 jobs. Over the year the supersector lost 1,355 jobs (19.9 percent).

Construction

Construction employment was off by 1.6 percent (2,000 jobs) in June on a seasonally adjusted basis. It was one of only two supersectors to lose jobs on the month, the other being Information. Unlike many other supersectors, employment in Construction showed a relatively large rebound in May, adding 18.3 percent, which may have dampened growth in June, when many other supersectors seemed to begin their recoveries in earnest. Over the year Construction employment was down by 6 percent, a slight deterioration from the 5.9 percent decline in May. Construction of Buildings was off by 7.2 percent (2,198 jobs), and Specialty Trade Contractor employment was down 6.6 percent (5,856 jobs).

Manufacturing

Manufacturing employment was up by 1,700 jobs (0.6 percent) in June, with growth in Durable Goods (up 3,000 or 1.6 percent) outpacing losses in Non-durable Goods (down 1,300 or 1.2 percent). On the year the supersector’s employment was down 6.3 percent (20,767 jobs), a slight improvement from May’s 7.5 percent over-the-year loss, which was revised up from 7.8 percent in preliminary estimates. Durable Goods employment was off by 6.8 percent (14,322 jobs), and Non-durable Goods was off 5.5 percent (6,445 jobs).

Trade, Transportation, and Utilities

Employment in Trade, Transportation, and Utilities was up by 19,100 (3.9 percent) in June. Retail Trade made up the lion’s share of that increase, adding 17,300 jobs (6.4 percent). COVID 19-related restrictions around many retail businesses were eased in late May, after the survey’s reference period, so it is likely that much of this increase is caused by those businesses reopening. On an annual basis Trade, Transportation, and Utilities employment was off by 3.1 percent (16,628 jobs). This is a marked improvement over April’s 7.1 percent over-the-year decline. Transportation, Warehousing, and Utilities had the largest proportional decline of any component sector, off by 7.5 percent (8,105 jobs).

Information

Information employers lost 200 jobs (0.5 percent) over the month in June, making it one of only three supersectors to post a seasonally-adjusted decline on the month. Annually employment in the supersector was off by 15.6 percent (7,360 jobs). This decline pushed Information past Other Services for the second worst over-the-year change of any supersector in the state. Employment in the supersector has been on a fairly consistent downward trajectory for nearly 20 years.

Financial Activities

Financial Activities employment was down by 1,500 (0.8 percent) in June. It was one of only two supersectors to lose jobs on the month. Annually the supersector lost 8,500 jobs (4.4 percent). Finance and Insurance employment was down 2,028 (1.3 percent), and Real Estate and Rental and Leasing was down 6,472 (17.9 percent).

Professional and Business Services

Professional and Business Services added 3,800 jobs (1.1 percent) on the month, with all the gains coming in Administrative and Support and Waste Management and Remediation Services, which includes temporary employment services, (up 5,900 jobs or 4.9 percent). Over the year Professional and Business Services lost 15,556 jobs or 4 percent. This was a marked improvement over May’s 5.9 percent over-the-year job loss.

Educational and Health Services

Educational and Health Services employment was up by 3.4 percent (16,900 jobs) in June. Educational Services added 6,300 jobs (11.3 percent), and Health Care and Social Assistance added 10,600 (2.4 percent). Over the year employment in Educational and Health Services was down by 6.5 percent, an improvement over May’s 10.9 percent decline. Health Care and Social Assistance was off by 6.8 percent (32,821 jobs), with declines across all component sectors, while Educational Services lost 2,448 jobs or 3.9 percent. Administrative and Support and Waste Management and Remediation Services improved from a 10.4 percent over-the-year decline in May to a 3.8 percent decline in June.

Leisure and Hospitality

Leisure and Hospitality had another large swing in June, this time towards the positive, as the supersector added 35,300 jobs (24.9 percent) on the month. It was the largest real and proportional over-the-month job growth of any supersector in the state, coinciding with the easing of restrictions on bars and restaurants over the month. Accommodation and Food Services added 31,400 jobs (26 percent) while Arts, Entertainment, and Recreation was up 3,900 (18.7 percent). In spite of the monthly growth Leisure and Hospitality still had the worst over-the-year job growth of any supersector in the state, off by 100,455 jobs or 34.4 percent, although this is still a notable improvement over May’s 49 percent annual decrease. Arts, Entertainment, and Recreation was down 24,931 jobs (46.8 percent), and Accommodation and Food Services was down 75,524 (31.7 percent).

Other Services

Employment in Other Services was up by 11,300 (12.9 percent) in June. As was the case in Leisure and Hospitality, the growth was likely aided by an easing of restrictions on barber shops, hair salons, and other personal services businesses, which make up a large part of employment in the supersector. Over the year Other Services employment was down by 15.2 percent (17,749 jobs), an improvement over May’s 23.7 percent annual decrease. Personal and Laundry Services had the steepest decline, off by 32.6 percent or 9,345 jobs. This was a dramatic improvement over the 60.1 percent loss posted in May, as roughly half of the jobs lost in the industry group during the early stages of the COVID-19 response returned. Religious, Grantmaking, Civic, Professional, and Similar Organizations lost 7,180 jobs (11 percent), and Repair and Maintenance lost 1,224 jobs (5.4 percent).

Government

Government employment was mostly flat in June, up 0.1 percent (300 jobs). State Government lost 1,800 jobs (1.8 percent), but Local Government added 1,900 (0.7 percent), and Federal Government chipped in 300 jobs (0.1 percent). Over the year Government employers lost 41,723 jobs (9.6 percent). The loss was felt most strongly at the local level, where employers lost 37,233 jobs (12.2 percent). State employment was down by 5,004 jobs (5.2 percent), and federal employers added jobs on the year, up by 514 or 1.6 percent.

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