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The Mayo Clinic and Jobs

By Brent Pearson
June 2013

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The Mayo Clinic has a major effect on the economy of southeastern Minnesota, with a proposed $5 billion expansion of the world-renowned medical center likely to stimulate further growth.

Destination Medical Center (DMC) is a $5 billion plan to expand the Mayo Clinic's Rochester campus and further enhance the region's position as a global destination for health care services. Mayo officials estimate the expansion will create between 25,000 and 30,000 direct jobs, another 10,000 to 15,000 indirect jobs, and 1,800 to 2,200 construction jobs over the next 20 years. In all, Mayo officials estimate 35,000 to 45,000 jobs will be added in the region, plus significant new tax revenue.

How do these employment projections compare with DEED's earlier employment projections for the region?

DEED estimates, which did not factor in the Mayo proposal, also project steady job growth in the region, based partly on the expectation that the medical complex would continue growing. Beyond that, though, it's difficult to compare DEED and DMC projections because they measured different time periods and possibly different areas.

DEED's employment projections are for the 10-year period from 2010 to 2020 (see Table 1), while the DMC projections are for a 20-year period.1 DEED's projections are for 11 counties in southeastern Minnesota (Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, Wabasha, and Winona counties), while the DMC projections are for the "Rochester area."

Table 1
Southeast Minnesota Employment Projections
Occupation Percent Change Total Change 2010-2020 Replacement Hires 2010-2020 Total Hires 2010-2020
Total, All Occupations 14.3 36,384 59,620 97,350
Health Care Practitioners and Technical Occupations
Health Diagnosing and Treating Practitioners 25.8 3,450 2,540 5,990
Registered Nurses 24.5 2,097 1,550 3,650
Physicians and Surgeons, All Other 28.8 299 200 500
Pharmacists 23.9 133 140 270
Health Technologists and Technicians 24.9 2,111 1,750 3,860
Licensed Practical and Licensed Vocational Nurses 20.9 472 600 1,070
Medical and Clinical Laboratory Technologists 20.7 301 280 580
Emergency Medical Technicians and Paramedics 27.2 197 140 340
Pharmacy Technicians 27.5 189 120 310
Radiologic Technologists and Technicians 26.8 168 100 270
Other Health Care Practitioners and Technical 23.4 67 100 170
Health Care Support Occupations
Nursing, Psychiatric, and Home Health Aides 37.8 3,099 1,060 4,140
Home Health Aides 61.8 2,454 510 2,960
Nursing Aides, Orderlies and Attendants 15.3 645 540 1,180
Occupational Therapy and Physical Therapist Assist 38.7 82 30 110
Other Health Care Support Occupations 25.1 1,075 690 1,770
Commercial and Professional Occupations
Supervisors of Office and Administrative Support Workers 12.4 251 540 790
Information and Record Clerks 13.3 966 2,170 3,150
Material Recording, Scheduling, Dispatching and Delivery 0.9 52 1,540 1,830
Secretaries and Administrative Assistants 19.0 1,063 750 1,820
Other Office and Administrative Support Workers 13.0 945 1,320 2,300
Restaurant and Retail
Supervisors of Food Preparation and Serving Workers 4.7 70 310 380
Cooks and Food Preparation Workers 6.3 256 980 1,240
Food and Beverage Serving Workers 7.4 832 4,500 5,330
Other Food Preparation and Serving Related Workers 1.9 32 860 910
Retail Sales Workers 12.8 1,964 5,490 7,470
Hotel and Hospitality
Hotel, Motel, and Resort Desk Clerks 11.3 87 310 400
Construction Related
Supervisors of Construction and Extraction Workers 25.0 153 140 290
Construction Trades Workers 28.0 1,955 1,520 3,480
Helpers, Construction Trades 48.0 73 40 110
Other Construction and Related Workers 6.6 50 200 250
Source: DEED Employment Outlook Projections

Comparing the Projections

The DMC projections (see Table 2) show significant growth in health care and commercial/professional occupations, along with lower growth in the service sector (restaurants, retail, hotels, hospitality). The wages for these jobs range from health care professionals, which DMC projected will earn $70,000 annually, to lower-wage service-sector employment, including hotel, hospitality, restaurant and retail jobs, projected to pay $21,500 annually. With construction, infrastructure and transportation, education, and office and business-support occupations added to the mix, DMC estimates the 26,800 to 32,200 permanent jobs created by the expansion of Mayo Clinic will pay $53,000 annually on average.

Table 2
Destination Medical Center Job Breakdown
Estimated Mayo Clinic and DMC Related Jobs Range of Job Growth Salary Range Estimated Average Mid-Point
Mayo Clinic Jobs
Physicians and Scientists 911 1,041  
Allied Health Professionals 12,226 13,973  
Other 863 986  
Subtotal - Mayo Clinic 14,000 16,000 $70,000
Commercial/Professional 5,000 5,500 $35,000 $116,000 $45,000
Restaurant/Retail 1,500 2,500 $18,000 $25,000 $21,500
Hotel/Hospitality 1,000 1,500 $18,000 $25,000 $21,500
Construction Related 1,800 2,200 $34,500 $62,000 $39,700
Other
Trade, Transportation, and Utilities 1,063 1,367 $20,000 $46,500 $33,200
Education and Non-Mayo Health Services 1,496 1,924 $27,500 $78,500 $37,100
Other Services 941 1,210 $19,000 $38,000 $28,500
Subtotal - Other 3,500 4,500   $33,600
Permanent Jobs and Salary Range 26,800 32,200   $53,000
Source: Destination Medical Center "Job Growth Breakdown"

DEED projects similar overall growth over a shorter period but possibly for a larger area. Moreover, the pattern of occupational growth is also similar. Overall, DEED's projections show southeastern Minnesota adding 36,384 new jobs (14.3 percent growth) over the 10-year period. An additional 59,620 jobs are projected to open as a result of workers who leave the region or retire.

Similar to DMC projections, DEED projects health care practitioners and technical occupations, led by registered nurses, to have some of the highest growth rates. Health diagnosing and treating practitioners are expected to add 3,450 new jobs, while technologists and technicians are expected to add 2,111 jobs. Significant growth is also expected in health care support occupations, with more than 6,000 new jobs. Health care practitioners and technical occupations pay $83,637 on average annually, while health care support occupations pay $30,249.

DEED's projections also show growth in commercial and professional, restaurant and retail, hotel and hospitality, and construction-related occupations in southeastern Minnesota. Among these, medical secretaries are projected to add 710 new jobs, while retail sales worker jobs are expected to grow by about 1,960. Construction occupations are projected to add more than 2,200 jobs in the region.

Overall, DEED and DMC projections show similar growth patterns, even though DEED did not factor in growth resulting from the DMC proposal. Mayo plays a huge role in the economy of southeastern Minnesota, both through direct and indirect job creation. An expansion of Mayo Clinic in the region can only bolster this growth.

More details about the project are available at www.dmc.mn.

1DEED updates employment projections every two years using national models and local employment statistics in collaboration with the Bureau of Labor Statistics.

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