Regional Analysis

by Jerry Brown- jerry.brown@state.mn.us
August  2010

Monthly analysis is based on unadjusted employment data.

Minneapolis-St. Paul Metropolitan Statistical Area (MSA)

Employment fell by 0.5 percent for the month of July, about half the loss that usually occurs in July. There were several areas that posted good results for the month. In particular, educational and health services posted better-than-usual July numbers, up 1 percent for the month as education did not produce the usual level of seasonal layoffs. The gains in professional and business services (1.3 percent), leisure and hospitality (0.8 percent), and financial activities (0.8 percent) were also robust. Government and natural resources, mining, and construction substantially underperformed for the month. Over the past year the MSA added 9,200 jobs. Leisure and hospitality was up 11,600 annually. This growth was nearly matched by professional and business services, up 11,400 on the strength of gains in administrative and support services. Educational and health services showed a gain of 5,800. Major losses occurred in logging, mining, and construction (-7,400), trade, transportation, and utilities (-5,400), and government (-5,100).

Duluth-Superior MSA

There was a 1.2 percent decline in employment for July in the Duluth-Superior area. This rate of decline is somewhat better than the usual level of change for July. Federal government fell by 200 from a reduction in temporary Census workers, but this was offset by a smaller-than-usual decline in state government. There were no standouts in private sector monthly change either positive or negative. The MSA’s annual rate of growth was -0.1 compared to 0.2 percent last month. Annual growth has fluctuated around slow growth or slight loss for several months. Census workers still boosted federal government, which was up 300 for the year. State government was up 300 as well. Educational and health services showed the largest annual gain, up 700. Transportation, warehousing, and utilities showed the largest decline, down 400, followed by a loss of 300 in local government.

Rochester MSA

Rochester experienced a decline of 0.6 percent for the month, which was a slight improvement compared to the previous five years. Local government declined 900, and educational and health services showed an increase of 600. Both these changes were close to average for July. Over the past year the MSA added 1,700 jobs. This increase came mainly from educational and health services, which added 1,300 jobs. This supersector makes up more than 40 percent of total employment for the MSA. Other areas showing substantial growth included local government, manufacturing, leisure and hospitality, and professional and business services. The only large decline was in mining, logging, and construction where employment was down over 300.

St. Cloud MSA

The monthly change of -1.5 percent was slightly worse than the average decline for July in recent years as educational and health services and trade, transportation, and utilities underperformed for the month. Over the past year the MSA added more than 900 jobs. The strongest annual gains came in state government (400), leisure and hospitality (300), and professional and business services (300). Gains of 200 were present in federal government and retail trade. The gain in state government was largely an artifact of an unusual reduction in employment that took place in July 2009 rather than superior growth in the current month. The largest loss was posted in manufacturing which fell by 300.

Fargo-Moorhead MSA

In July employment in Fargo-Moorhead fell 2 percent. The largest part of the loss was a normal seasonal change in government. There was a decline of 400 in educational and health services, most of which are usual seasonal declines in private education, but about a quarter came from losses in health care and social assistance. Compared to July 2009, employment increased 0.5 percent, equal to about 600 jobs. Government added about 900 jobs including 600 for state government and 200 in federal payrolls. A gain of 300 occurred in educational and health services all from increases in health care and social assistance. The largest annual losses were in mining, logging, and construction, down 500, and in manufacturing, down 200.

Grand Forks MSA

Employment in Grand Forks was down 2.6 percent over the month of July mainly from seasonal layoffs that occur each summer in local government. Other losses were very slight. The only substantial increase was a gain of about 100 in mining, logging, and construction, which is a normal seasonal increase for July. Over the past year employment increased 1.5 percent. Federal government employment increased 100, and state government was up 400. A boost in health care increased employment in educational and health care services by 200. Manufacturing and trade, transportation, and utilities each added 100 jobs.

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