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Industrial Analysis

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

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

Overview

Employment in Minnesota was off by 1,400 jobs (0.0 percent) on a seasonally adjusted basis in September. August’s growth was also revised down from -200 to -2,500. The losses appear to represent something of a seasonal correction after May, June, and July each had notable monthly growth (up 10,700, 9,900, and 11,100, respectively). September’s decline was driven by the private sector (off by 2,500 or 0.1 percent) and Goods Producers (off 1,300 or 0.3 percent). Over the year Minnesota employers added 37,339 jobs (1.3 percent). This is off a bit from August’s 1.7 percent over-the-year growth. Private sector employers added 32,107 (1.3 percent) over the past 12 months, while public sector employers added 5,232 (1.2 percent).

Mining and Logging

Employment in the Mining and Logging supersector was flat in September, remaining at 6,400 for the third consecutive month. Annually the supersector lost 114 jobs (1.7 percent).

Construction

The Construction supersector added 300 jobs (0.2 percent) in September on a seasonally adjusted basis. It was the sixth consecutive month of over-the-month growth for the industry group. Annually Construction employers added 5,514 jobs (4.2 percent). It was the largest proportional over-the-year growth of any supersector in the state. Specialty Trade Contractors, the largest component sector in Construction, also contributed the most to its growth, adding 4,347 jobs (5.2 percent). Construction of Buildings employment was up by 921 (3.4 percent).

Manufacturing

Employment in the Manufacturing supersector was off by 1,600 jobs (0.5 percent) in September. It was the supersector’s second consecutive month of job losses after having gone all of 2018 up to that point with exclusively positive over-the-month job growth. Non-Durable Goods manufacturers drove the job losses, shedding 1,400 jobs (1.2 percent), while Durable Goods manufacturers lost only 200 (0.1 percent). Annually Manufacturing employment was up by 5,761 (1.8 percent). Durable Goods manufacturers added 4,409 jobs (2.2 percent). Non-Durable Goods manufacturers added 1,352 (1.1 percent).

Trade, Transportation, and Utilities

Trade, Transportation, and Utilities employment was up by 1,200 (0.2 percent) in September, with growth in all three component sectors. Wholesale Trade added 200 jobs (0.1 percent), Retail Trade added 300 (0.1 percent), and Transportation, Warehousing, and Utilities added 700 (0.6 percent). On an over-the-year basis the supersector added 9,251 jobs (1.7 percent), as all three components once again contributed to the growth. Retail Trade, the largest component sector, added the fewest proportional jobs, up by 1.6 percent (4,654 jobs). Transportation, Warehousing, and Utilities employment was up by 2 percent (2,155 jobs), and Wholesale Trade employment was up by 1.8 percent (2,442 jobs).

Information

Employment in the Information supersector was up by 200 (0.4 percent) in September. However, August’s 200-job increase was revised down to a loss of 500 jobs. Annually Information employers lost 63 jobs (0.1 percent). It was one of only two supersectors to lose jobs on the year, Other Services being the second.

Financial Activities

Financial Activities employment was up by 900 (0.5 percent) in September. August’s estimate was also revised upward, from a loss of 200 to a gain of 100, meaning that the supersector has not had an over-the-month job loss since June. Real Estate and Rental and Leasing added 600 jobs (1.7 percent) in September, and Finance and Insurance added 300 (0.2 percent). Annually the supersector added 1,888 jobs (1 percent). Finance and Insurance added 978 jobs (0.7 percent), and Real Estate and Rental and Leasing added 910 (2.6 percent).

Professional and Business Services

Employment in Professional and Business Services was up by 200 (0.1 percent) in September. A gain of 2,300 jobs (1.7 percent) in Administrative and Support and Waste Management and Remediation Services was largely erased by losses of 1,400 jobs and 700 jobs (both 0.9 percent) in Professional, Scientific, and Technical Services and Management of Companies and Enterprises, respectively. Annually the supersector added 3,845 jobs (1 percent). Professional, Scientific, and Technical Services added 1,103 jobs (0.7 percent), Management of Companies and Enterprises added 720 (0.9 percent), and Administrative and Support and Waste Management and Remediation Services added 2,022 (1.5 percent).

Educational and Health Services

Employment in the Educational and Health Services supersector was down by 700 (0.1 percent) in September. It was the second consecutive month of job losses in the large supersector, and both component sectors contributed to the decline. Educational Services lost 600 jobs (0.9 percent) while Health Care and Social Assistance lost 100 (0.0 percent). Annually the supersector added 1,542 jobs (0.3 percent). Health Care and Social Assistance added 1,634 jobs (0.3 percent) with growth in Office of Physicians (up 1,213 or 1.6 percent) and Hospitals (up 1,209 or 1.1 percent) offsetting the loss of 1,424 (1.3 percent) in Nursing and Residential Care Facilities. Educational Services lost 92 jobs (0.1 percent) on the year.

Leisure and Hospitality

Leisure and Hospitality employment was off by 1,700 (0.6 percent) in September. Accommodation and Food Services lost 1,300 jobs (0.6 percent), and Arts, Entertainment, and Recreation lost 400 (0.9 percent). On the year the supersector added 5,692 jobs (2 percent), the second-largest proportional over-the-year growth of any supersector in the state. Arts, Entertainment, and Recreation added 1,138 jobs (2.4 percent), and Accommodation and Food Services added 4,554 (2 percent).

Other Services

The Other Services supersector lost 1,300 jobs (1.1 percent) in September. It was the largest proportional over-the-month employment decline of any supersector in the state and the second consecutive month of job losses. Annually, Other Services employment was off by 1,209 (1 percent). It was one of only two supersectors to lose jobs on the year, and the other, Information, lost only 63 (0.1 percent). The losses were driven by Religious, Grantmaking, Civic, Professional, and Similar Organizations, which was off by 2,107 (3.2 percent). The other component sectors added jobs on the year.

Government

Government employers added 1,100 jobs (0.3 percent) in September. Most of that growth came from State Government (up 1,100 or 1.1 percent). Annually Government employers added 5,232 jobs (1.2 percent) with growth split between State and Local employers. State Government Educational Services added 3,162 jobs (5 percent), the single largest source of the growth.


Seasonally Adjusted Nonfarm Employment (in thousands)
Industry Sep-18 Aug-18 Jul-18
Total Nonfarm 2,972.8 2,974.2 2,976.7
Goods-Producing 456.1 457.4 457.2
Mining and Logging 6.4 6.4 6.4
Construction 125.4 125.1 123.8
Manufacturing 324.3 325.9 327.0
Service-Providing 2,516.7 2,516.8 2,519.5
Trade, Transportation, and Utilities 544.6 543.4 . 544.0
Information 50.4 50.2 50.7
Financial Activities 181.5 180.6 180.5
Professional and Business Services 378.0 377.8 378.5
Educational and Health 539.9 540.6 541.9
Leisure and Hospitality 274.8 276.5 277.2
Other Services 115.6 116.9 117.1
Government 431.9 430.8 429.6
Source: Department of Employment and Economic Development, Current Employment Statistics, 2018.


bar graph- Minnesota Nonfarm Growth, September 2017 to September 2018 

*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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