Regional Analysis

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

Monthly analysis is based on unadjusted employment data.

Minneapolis-St. Paul Metropolitan Statistical Area (MSA)

There was little monthly change in employment for the Twin Cities for August. Employment fell 0.1 percent from July, which is close to the average August change the previous five years. The area with the strongest growth was professional and business services, which showed stronger-than-expected growth at 1.5 percent largely from strong growth in administrative and support services. After experiencing larger-than-expected seasonal layoffs in July, local government education bounced back to post smaller-than-usual losses in August. Educational and health services showed decent growth for the month, particularly health care and social assistance industries. After a strong run of months, leisure and hospitality industries were weaker for the month particularly accommodation and food services, down 0.9 percent. The rate of annual growth improved to 0.4 percent with total private employment growth improving to 0.9 percent. Annual gains were strongest in professional and business services (+12,752), leisure and hospitality (+9,700), educational and health services (+5,100), and manufacturing (+2,400). Major losses were in mining, logging, and construction (-7,500), trade, transportation, and utilities (-7,600), and government (-6,800).

Duluth-Superior MSA

August’s monthly decline of 0.1 percent was close to the expected monthly change. Several areas showed somewhat better-than-usual monthly growth including manufacturing, information, financial activities, and professional and business services. These positives were offset by weaker results in leisure and hospitality, trade, transportation, and utilities, educational and health services, and mining, logging, and construction. Over the past year the Duluth-Superior MSA added 1,100 jobs. Private employment actually showed a slight decline as growth in educational and health services, leisure and hospitality, and professional and business services was erased by losses in trade, transportation, and utilities, mining, logging, and construction, and other services. Government posted a gain of 1,200 in part because of temporary Census workers but also from gains in state government education and in local government.

Rochester MSA

Rochester saw a monthly employment increase of 0.1 percent in August, close to the normal change for the month. The supersectors of manufacturing, information, and educational and health services posted monthly changes indicating somewhat stronger results. Leisure and hospitality, federal government, state government, and trade, transportation, and utilities saw weak monthly results compared to expectations. On an annual basis Rochester showed an increase of 1.5 percent, the strongest annual gain among the metro areas. Not surprisingly most of the growth for the year came in educational and health services where employment was up about 1,250 or 3 percent. Manufacturing added over 300 jobs as did local government. Leisure and hospitality increased by more than 100. Mining, logging, and construction posted a substantial loss of about 350 followed by other services, down about 150.

St. Cloud MSA

Employment increased 1 percent for St. Cloud over the month of August, a bit higher than the usual August change. Professional and business services saw an increase of 1.5 percent in August, a month when the norm is for little change to occur. Other areas that showed improvement included manufacturing and local government. In leisure and hospitality and in educational and health services there was less monthly increase than usual. Over the past year St. Cloud added more than 700 jobs. The net change for private employment was -200 as gains in professional and business services, retail trade, and leisure and hospitality were erased by losses in other areas, particularly manufacturing, educational and health services, and mining, logging, and construction. Government employment was up between Census workers causing a gain of 130 in federal government and a reduced seasonal decline in state government education.

Fargo-Moorhead MSA

Fargo-Moorhead experienced a 0.1 percent monthly employment decline. This was slightly worse than the usual change for August. The over-the-year rate of change improved to -0.1 percent. Government employment added more than 800 jobs over the year. Most of this was in state government, but temporary Census workers added about 200 in federal government. Private employment was down nearly 1,000 over the past year.

Grand Forks MSA

The 0.4 percent monthly decline for the Grand Forks MSA was very similar to last year. Compared to last year, employment was up 1.6 percent. Areas showing strong growth included government, up 4.6 percent, mining, logging, and construction, up 4.4 percent, manufacturing, up 2.8 percent, and educational and health services, up 1.4 percent. The largest loss was in trade, transportation, and utilities with employment off about 100 jobs.

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