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Industrial Analysis

by Nick Dobbins
nicholas.dobbins@statemn.us
May 2017

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

Overview

Minnesota added 15,100 jobs (0.5 percent) in April on a seasonally adjusted basis. This was the largest single-month addition to Total Nonfarm employment since September of 2013. The state has added more than 10,000 jobs three times in the last 12 months, a mark that hadn’t been reached since 2013 prior to that. Sizeable monthly losses have occurred during the same time period, however, suggesting that some of these changes may be influenced by changing seasonal patterns. Annually Minnesota added 34,715 jobs (1.2 percent), the 10th straight month with over-the-year growth of greater than 1 percent. Private sector employers added 32,030 jobs (1.3 percent) while the public sector added 2,685 (0.6 percent). Both service providers and goods producers grew on the year, adding 30,516 jobs (1.2 percent) and 4,199 jobs (1 percent) respectively.

Mining and Logging

Mining and Logging lost 100 jobs (1.4 percent) in April, giving back some of the 6.1 percent gain the supersector had in March. Over the year Mining and Logging employment was up by 787 (13.7 percent). Although the over-the-year change may make the supersector’s employment growth appear very strong, it largely reflects a recovery from an especially weak period last year.

Construction

Employment in the Construction industry was up by 3,600 (3.0 percent) in April, after having shed 1,000 jobs in March. The supersector has alternated gains and losses over the past five months, although generally speaking the gains have been larger. Annually Construction employment was up by 3, 021 (2.7 percent). Employment in Building Construction was off by 1,126 (4.5 percent), but that loss was overshadowed by a gain of 3,920 (5.4 percent) in Specialty Trade Contractors. Heavy and Civil Engineering Construction added 227 jobs (1.5 percent).

Manufacturing

Manufacturers in Minnesota added 1,100 jobs (0.3 percent) in April as Durable Goods Manufacturers added 500 (0.2 percent), and Non-Durable Goods Manufacturers added 600 (0.5 percent). It marked the third straight month of growth for the supersector. Annually employment in the supersector was up slightly, adding 391 jobs (0.1 percent). Durable Goods Manufacturers lost 1,693 jobs (0.8 percent), the 12th straight month of annual losses in the sector. Alternately, Non-Durable Goods Manufacturers added 2,084 jobs (1.8 percent) and has added jobs on an over-the-year basis consistently since 2013.

Trade, Transportation, and Utilities

Trade, Transportation, and Utilities employment was off by 700 (0.1 percent) in April. After seeing a dramatic 5,700 job increase in February, the supersector has lost 2,400 jobs over the previous two months. April’s loss was split between Wholesale and Retail Trade (down 200 or 0.2 percent and 1,300 or 0.4 percent respectively). Transportation, Warehousing, and Utilities added 800 jobs (0.8 percent). Annually the supersector added 1,899 jobs (0.4 percent). Retail Trade continued to drive the supersector’s growth, adding 2,491 jobs (0.8 percent) on the strength of 1,951 jobs in Grocery Stores. Department Store employment, on the other hand, was off by 1,386 (5.5 percent).

Information

Information employment was up by 200 (0.4 percent) in April. That marks two straight months of growth for the supersector which previously hadn’t seen a single month of added jobs since October. Annually, employment in the supersector was up by 1,107 (2.2 percent). However, since the growth is concentrated in smaller and newer industry groups, both published component sectors still showed over-the-year job losses, with Publishing Industries (except Internet) losing 395 jobs (2.1 percent) and Telecommunications losing 271 (2.2 percent).

Financial Activities

The Financial Activities supersector lost 500 jobs (0.3 percent) in April. Real Estate and Rental and Leasing lost 900 jobs (2.7 percent), driving the decline. The component sector hasn’t seen a monthly increase since October. Annually, the supersector added 2,263 jobs (1.3 percent). However, Real Estate and Rental and Leasing once again showed over-the-year job losses, off by 1,114 jobs (3.3 percent) from April of 2016.

Professional and Business Services

Professional and Business Services added 2,700 jobs (0.7 percent) in April. Professional, Scientific, and Technical Services contributed 1,900 jobs to the gain, and Administrative and Support and Waste Management and Remediation Services added 900. Employment in Management of Companies was down by 100 (0.1 percent). Annually the supersector added 2,858 jobs (0.8 percent). Management of Companies and Enterprises added 1,418 jobs (1.8 percent), giving it the largest numerical and proportional growth of the component sectors, all three of which grew over the year.

Educational and Health Services

Educational and Health Services added 4,300 jobs (0.8 percent) in April. The gains came entirely from Health Care and Social Assistance, which added 4,400 jobs (0.9 percent). Over the year Educational and Health Services added 18,929 jobs (3.6 percent). The supersector has shown annual growth of greater than 3 percent consistently since November. Although Health Care and Social Assistance, by far the larger of the two component sectors, contributed more jobs, the growth has been thanks to strong expansion in both areas. Educational Services was up by 3,647 jobs (5.1 percent) over April of 2016 and has maintained over-the-year growth since late 2014.

Leisure and Hospitality

Leisure and Hospitality added 500 jobs (0.2 percent) in April. Arts, Entertainment, and Recreation added 1,300 jobs (3.1 percent), but Accommodation and Food Services lost 800 (0.4 percent). Annually the supersector lost 2,437 jobs (0.9 percent). Both component sectors lost jobs at a rate of around 1 percent. Leisure and Hospitality was the only supersector to show over-the-year job losses in Minnesota.

Other Services

Other Services added 100 jobs (0.9 percent) in April. Annually the supersector added 3,212 jobs (2.8 percent). All three component sectors added around 1,000 jobs, with Repair and Maintenance growing by 4.6 percent (999 jobs), the largest proportional change of any of the sectors.

Government

Government employment was up by 3,000 (0.7 percent) in April, with Local Government (up 2,300 or 0.8 percent) largely driving that increase. Annually Government employers added 2,685 jobs (0.6 percent). Local Government added 4,009 jobs (1.4 percent) thanks in large part to the Educational component, which added 3,599 jobs (2.4 percent).

 

Seasonally Adjusted Nonfarm Employment (in thousands)
Industry Apr-17 Mar-17 Feb-17
Total Nonfarm 2,944.4 2,929.3 2,923.7
Goods-Producing 451.3 446.7 447.0
Mining and Logging 6.9 7.0 6.6
Construction 124.8 121.2 122.2
Manufacturing 319.6 318.5 318.2
Service-Providing 2,493.1 2,482.6 2,476.7
Trade, Transportation, and Utilities 537.9 538.6 540.3
Information 51.4 51.2 50.1
Financial Activities 177.5 178.0 177.0
Professional and Business Services 376.9 374.2 369.7
Educational and Health 538.8 534.5 535.0
Leisure and Hospitality 264.7 264.2 262.0
Other Services 118.3 117.3 118.0
Government 427.6 424.6 424.6
Source: Department of Employment and Economic Development, Current Employment Statsitics, 2017.

 


bar graph- Minnesota Emplomen Growth


*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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