Industrial Analysis
by Nick Dobbins
March 2025
Monthly analysis is based on seasonally adjusted employment data.
Yearly analysis is based on unadjusted employment data.
Overview
Minnesota employment growth was mostly flat over the month in February, on a seasonally adjusted basis, as employers shed 700 jobs or 0.0%. Private sector employers lost 300 jobs (0.0%), and public sector employers lost 400 jobs (0.1%). Goods producers lost 500 jobs (0.1%) and service providers lost 200 (0.0%).
Over the year the state added 40,570 jobs, or 1.4%, slightly better than the nation's 1.3% growth. Service providers added 37,680 jobs (1.5%), while goods producers added 2,890 jobs (0.7%). Private sector employment was up 28,640 (1.1%), and public sector employment was up 11,930 (2.8%).
Mining and Logging
Employment in Mining and Logging was flat over the month in February, holding at a seasonally adjusted 6,600 jobs. The supersector has not posted positive monthly growth since April of 2024.
On an annual basis Mining and Logging employers added 240 jobs or 3.9%. This was in contrast to the national loss of 0.6%. January's over-the-year growth was 4.9%.
Construction
Construction employment was off by 1,100 jobs (0.8%) over the month, following growth of 100 jobs in January. The supersector has alternated loss and growth every month since September 2024.
Over the year Construction employers added 2,069 jobs or 1.8%. Heavy and Civil Engineering continued to drive the growth, adding 3,346 jobs or 29.5%. Construction of Buildings was up 749 (2.5%) while Specialty Trade Contractors lost 2,026 jobs (2.7%).
Manufacturing
Employment in Manufacturing was up by 600 (0.2%) over the month of February. Durable Goods Manufacturing was up by 800 (0.4%) while their counterparts in Non-Durable Goods Manufacturing lost 200 jobs (0.2%).
On an annual basis employment in Manufacturing was up by 581 or 0.2%. This was higher than the national loss of 0.7%. Minnesota's annual growth came entirely in Non-Durable Goods, which was up 2,605 (2.3%). Durable Goods employers shed 2,024 jobs (1%) on the year.
Trade, Transportation, and Utilities
Trade, Transportation, and Utilities employment was off by 1,600 (0.3%) in February. The decline came primarily in Wholesale Trade, which lost 1,400 jobs or 1.1%. Transportation, Warehousing, and Utilities employment was down 200 (0.2%), while employment in Retail Trade held steady at 284,100.
Annually the supersector lost 572 jobs (0.1%). The declines came from the Wholesale Trade sector, which lost 2,246 jobs or 1.7%, with declines in all of its components. Retail Trade employers added 742 jobs (0.3%), and Transportation, Warehousing, and Utilities added 932 jobs (0.8%).
Information
Information employment was down by 100 (0.2%) over the month after adding 200 jobs in January. Seasonally adjusted employment is now at the same level as August 2024.
On an annual basis the supersector lost 872 jobs or 2%, while nationally the supersector was off by 0.3% over the year. Both published component sectors lost jobs on the year in Minnesota, with Publishing Industries down 86 (0.5%) and Telecommunications down 372 jobs (4.3%).
Financial Activities
Financial Activities employment was up by 300 (0.2%) in February. The growth was entirely in Finance and Insurance, which was up 300 or 0.2%. Employment in Real Estate and Rental and Leasing was flat on the month, holding at 35,900 jobs.
Over the year Financial Activities employment was down 905 jobs or 0.5%. Finance and Insurance lost 1,521 jobs (1%) from the loss of 2,012 jobs (3.5%) in Credit Intermediation and Related Activities. Real Estate and Rental and Leasing employment was up by 616 jobs or 1.8%.
Professional and Business Services
Employment in Professional and Business Services was up by 1,900 (0.5%) over the month. Professional, Scientific, and Technical Services added 1,800 jobs (1.1%), and Administrative and Support and Waste Management and Remediation Services added 700 jobs (0.6%), while Management of Companies lost 600 jobs (0.7%).
Over the year employment in Professional and Business Services was down 429 jobs or 0.1%. This was an improvement over January's 1% loss and is the best over-the-year growth in the supersector since June of 2023. Professional, Scientific, and Technical Services added 4,530 jobs (2.7%), while Management of Companies and Enterprises lost 2,203 jobs (2.5%), and Administrative and Support and Waste Management and Remediation Services lost 2,756 jobs (2.4%).
Educational and Health Services
Educational and Health Services added 2,100 jobs (0.3%) over the month of in February. Both components posted positive monthly growth, with Educational Services up 1,600 (2.2%) and Health Care and Social Assistance up 500 (0.1%).
On an annual basis Educational and Health Services added 25,335 jobs (4.4%), outpacing the national growth of 3.5%. The growth came primarily in Health Care and Social Assistance, which was up 24,963 (5%). Educational Services added 372 jobs or 0.5%. Elementary and Secondary Schools lost 762 jobs (2.7%) while Colleges, Universities, and Professional Schools added 213 jobs (0.7%).
Leisure and Hospitality
Employment in Leisure and Hospitality was off by 2,900 (1.1%) over the month on a seasonally adjusted basis. It was the fourth consecutive month of declines for the supersector. Accommodation and Food Services lost 2,700 jobs (1.2%), and Arts, Entertainment, and Recreation lost 200 (0.4%).
Over the year Leisure and Hospitality lost 1,285 jobs (0.5%). The declines were in Accommodation and Food Services, which shed 1,622 jobs (0.8%), with losses in Food Services and Drinking Places (down 2,421 jobs or 1.3%) overcoming growth in Accommodation (up 799 or 3.4%). Arts, Entertainment, and Recreation added 337 jobs (0.8%).
Other Services
Other Services employment was up 500 (0.4%) in February. The supersector has added jobs on a seasonally adjusted basis in five of the past six months.
On an annual basis, the supersector added 4,478 jobs or 4%, outpacing the national growth of 1.6%. All three published components added jobs, with Repair and Maintenance up 1,083 (4.6%), Personal and Laundry Services up 457 (1.7%), and Religious, Grantmaking, Civic, and Professional Organizations up 2,938 (4.7%).
Government
Government employers lost 400 jobs (0.1%) over the month of February. Local Government employers lost 400 jobs (0.1%) and Federal employers lost 100 jobs (0.3%) while State Government employment was up by 100 (0.1%).
Over the year the Government added 11,930 (2.8%), outpacing the national growth of 1.5%. All three levels of Government added jobs. Federal employment was up by 130 (0.4%), State was up 4,237 jobs (4%), and Local was up 7,562 jobs (2.6%). Non-education employment outpaced education employment at both the state and local levels, although all published component sectors had positive growth save for the U.S. Postal Service, which was down by 141 (1.2%).
| Minnesota Seasonally Adjusted Nonagricultural Wage and Salary Employment (In Thousands) | |||
|---|---|---|---|
| Industry | Feb-25 | Jan-25 | Dec-24 |
| Total Nonfarm | 3037.5 | 3038.2 | 3034.4 |
| Goods-Producing | 466.8 | 467.3 | 466.6 |
| Mining and Logging | 6.6 | 6.6 | 6.6 |
| Construction | 138 | 139.1 | 139 |
| Manufacturing | 322.2 | 321.6 | 321 |
| Service-Providing | 2570.7 | 2570.9 | 2567.8 |
| Trade, Transportation, and Utilities | 534.1 | 535.7 | 536.3 |
| Information | 43.2 | 43.3 | 43.1 |
| Financial Activities | 188.7 | 188.4 | 188 |
| Professional and Business Services | 375.7 | 373.8 | 372.6 |
| Educational and Health Services | 605.4 | 603.3 | 600.5 |
| Leisure and Hospitality | 268 | 270.9 | 271.9 |
| Other Services | 118.1 | 117.6 | 116.8 |
| Government | 437.5 | 437.9 | 438.6 |
| Source: Department of Employment and Economic Development, Current Employment Statistics, 2025. | |||