Industrial Analysis

by Jerry Brown
May 2011

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

Overview

Employment in Minnesota fell by 5,200 jobs in April halting a three-month period of increases and erasing most of the gain made in March. The most important monthly decline was in construction where generally poor results in its component industries led to a loss of 5,700 in April. Trade, transportation, and utilities and other services also showed large losses, down 2,800 and 2,600 respectively. In total there were six supersectors with lower employment. Four supersectors increased employment including a gain of 3,100 in leisure and hospitality and 2,600 in professional and business services. Financial activities showed no change. The rate of over-the-year growth fell to 0.1 percent partly from weaker monthly increases but also from comparisons that included about 2,600 temporary workers in April 2010. Five of 11 supersectors showed annual growth including additions of 8,300 in professional and business services, 7,900 in educational and health services, and 5,000 in manufacturing. Construction employment was off 12,000 since April 2010. There were losses in excess of 2,000 in trade, transportation, and utilities and in government. Financial activities and leisure and hospitality showed losses greater than 1,000.

Mining and Logging

Mining and logging added 200 jobs for the month. Growth over the past 12 months totaled 400.

Construction

Construction posted the largest April job decline among supersectors, dropping 5,700 over the month. All three major components were weaker for the month, but the main losses came in specialty trade contractors. Some of this loss probably reflects the effect of long lingering winter weather, but there continued to be a simple lack of new home and commercial construction. Compared to April 2010, the supersector showed a loss of 12,000. There were losses in every detailed industry group. Specialty trade contractors fell 7,400 for the year including 3,400 in building equipment contractors. Heavy and civil engineering was down 3,100, and construction of buildings was off about 1,500.

Manufacturing

Manufacturing saw a reduction of 300 in its employment levels over the month of April. Durable-goods manufacturing posted a gain of 900, but this gain was erased by a loss of 1,200 in nondurable goods. On an annual basis the supersector showed an employment gain of 5,000 of which about 4,400 of the increase was in durable-goods manufacturing. Outside of furniture and related products, which showed a loss of 300, all of the other detailed industries showed gains over the past year. Fabricated metal product manufacturing showed the most growth adding 1,900. Machinery manufacturing added 600. The remaining industries all showed gains of 300 to 400. The Institute of Supply Management’s production manager’s index remains more than 10 points above the break-even point at 60.4. The Minnesota business conditions index produced at Creighton University was similar at 60.9. These indicate that conditions are still positive in manufacturing.

Trade, Transportation, and Utilities

Weakness in wholesale trade and retail trade led to a decline of 2,800 for the supersector. Wholesale trade showed the largest loss falling 1,900 for the month of April. Both durable and nondurable goods showed weak results for the month. Retail trade posted a decline of 1,200. The annual rate of change slipped back into negative territory in April with an estimated loss of 0.5 percent from 0.7 percent in March. The monthly loss was instrumental in this. But last April showed a larger-than-usual increase, which also weakened comparisons. Retail trade showed a loss of 2,400 with motor vehicle and parts dealers, building materials and supply dealers, and grocery stores driving the decline. The only large annual gain in retail was in general merchandise stores, which added 1,100 jobs.

Information

There was little change in information employment over the month of April as estimates showed a loss of 100. Compared to last year the supersector added 200 jobs despite substantial losses in publishing industries, which lost 800 jobs. With a slight loss in telecommunications, the gain in the supersector came in non-estimated industries.

Financial Activities

There was no estimated change in employment over the month of April in financial activities. Finance and insurance industries added 600 largely caused by credit intermediation and insurance carriers. This was offset by losses in real estate and rental and leasing. For the year the supersector lost 1,100 jobs. All of this loss was from weakness in real estate and rental and leasing, which was off 1,800. This was partly offset by a gain of 700 in finance and insurance. The only strong growth over the past year was registered in insurance carriers.

Professional and Business Services 

Professional and business services employment increased 2,600 over the month of April as each of the three major components added jobs for the month. Management of companies showed the most substantial gain, up 1,300, after posting a loss in March. Professional and technical services added 800 as computer systems design and related services posted strong gains for the month. Administrative and support services added 500 for the month. Over the past year the supersector added 8,300 jobs, with more than half of the gain occurring in administrative and support services because of a gain of 5,600 jobs in employment services. Most of the other annual gains came in management of companies, which added another 2,200. Professional, scientific, and technical services added 1,800 largely from a gain of 1,300 in computer system design and related services.

Educational and Health Services

Small seasonally adjusted gains in both major component industries led to an increase of 500 in the educational and health services supersector. Compared to last April the supersector showed a gain of 7,900. Employment growth in educational services was quite strong, up 3,200, with a gain of 2,300 in private colleges and universities. Health care and social assistance added nearly 4,700 jobs over the year with 3,300 of the increase coming in nursing and residential care facilities. Ambulatory health care was up 1,900.

Leisure and Hospitality

There was a monthly gain of 3,100 in leisure and hospitality. This was entirely caused by increases in accommodation and food services, which had an estimated increase of 3,500, which was partly offset by a loss of 400 in arts, entertainment, and recreation. On an annual basis the supersector showed a loss of 1,200 with the entire decline coming from arts, entertainment, and recreation, which showed an employment decline of 6,600 over 12 months. Strong growth in accommodation and food services saw an increase of 5,500 jobs but fell short of countering these losses.

Other Services

Employment in other services fell by 2,600 jobs with most of the monthly weakness coming in religious, grantmaking, civic, professional, and related and in personal services. Over the past year the supersector posted a loss of 800.

Government

Government employment fell slightly for the month with a loss of 700 in federal government employment. Over the past 12 months the supersector was off nearly 2,200 essentially from a decline of 3,200 in federal government employment. The federal government loss was mainly caused by the removal of the temporary census workers that were in place during 2010.

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