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7/19/2023 9:00:00 AM
Amanda O'Connell
Many Minnesotans joke that Minnesota has two seasons: winter and construction. The construction season in Minnesota is a vital period for infrastructure development, building renovations, and various other construction projects. It serves as an opportunity for cities and residents to enhance their infrastructure, accommodate growth, and improve the overall quality of life.
In 2022, the Construction industry provided an annual average of 139,824 jobs at 18,226 firms in Minnesota. Among the planning regions, Central had the highest proportion of jobs in Construction, accounting for 7.6% of total employment. Conversely, Southeast had the lowest proportion of jobs in the Construction industry, comprising only 4.1% of the total employment in the region.
Specifically focusing on Southeast Minnesota, the region had an average of 9,949 jobs and 1,498 firms in Construction in 2022. These jobs provided an average annual wage of $67,288, which was more than $6,000 higher than the average annual wage across all industries. Of the 11 counties in Southeast Minnesota, Dodge County has the highest proportion of jobs in Construction, representing 9.6% of the total employment in the county. The lowest proportion of Construction jobs was in Winona County, comprising just 2.8% of total employment.
| Table 1. Construction Industry Employment in Southeast Minnesota | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2022 Annual Data | 2021-2022 | 2019-2022 | ||||||
| County | Number of Firms | Number of Jobs | Percent of Total Jobs | Avg. Annual Wage | Change in Jobs | Percent Change | Change in Jobs | Percent Change |
| Southeast Region | 1,498 | 9,949 | 4.1% | $67,288 | +121 | +1.2% | -36 | -0.4% |
| Olmsted Co. | 408 | 4,320 | 4.3% | $71,534 | +88 | +2.1% | +42 | +1.0% |
| Rice Co. | 218 | 1,080 | 4.3% | $65,155 | +7 | +0.7% | -65 | -5.7% |
| Goodhue Co. | 147 | 784 | 3.8% | $69,839 | -26 | -3.2% | -108 | -12.1% |
| Winona Co. | 117 | 662 | 2.8% | $55,765 | +24 | +3.8% | +5 | +0.8% |
| Steele Co. | 109 | 605 | 3.2% | $65,068 | +18 | +3.1% | -25 | -4.0% |
| Mower Co. | 92 | 568 | 3.5% | $62,821 | -4 | -0.7% | +18 | +3.3% |
| Freeborn Co. | 88 | 522 | 4.5% | $66,704 | +55 | +11.8% | +46 | +9.7% |
| Dodge Co. | 87 | 552 | 9.6% | $74,447 | -9 | -1.6% | +40 | +7.8% |
| Fillmore Co. | 86 | 304 | 4.9% | $53,612 | +1 | +0.3% | +33 | +12.2% |
| Wabasha Co. | 83 | 196 | 3.1% | $46,505 | -15 | -7.11% | +4 | +2.1% |
| Houston Co. | 64 | 356 | 7.1% | $61,830 | -15 | -4.0% | -26 | -6.8% |
| Source: DEED Quarterly Census of Employment & Wages (QCEW) program | ||||||||
There are three subsectors in the Construction industry. These include: Construction of Buildings, Heavy & Civil Engineering Construction, and Specialty Trade Contractors. Of these subsectors, Specialty Trade Contractors has the most firms (994 firms) and the most jobs (6,373 jobs), which is 64.1% of the total employment in the Construction industry in Southeast Minnesota.
Among the three subsectors in the Construction industry, Heavy & Civil Engineering Construction had the highest average annual wages in Southeast Minnesota, amounting to $80,808. This subsector includes projects involving infrastructure development such as highways, streets and bridges.
Specialty Trade Contractors ranked second in average annual wage, with workers in this subsector earning an average of $64,532 annually. Specialty Trade Contractors typically focus on specific trades within construction, such as electrical, plumbing or carpentry.
Construction of Buildings subsector had the third highest average annual wage among the three, with workers earning an average of $63,752 annually. This subsector encompasses the construction of residential and nonresidential buildings.
Under the Specialty Trade Contractor subsector, four industry groups can be identified: Foundation, Structure & Building Exterior Contractors, Building Equipment Contractors, Building Finishing Contractors, and Other Specialty Trade Contractors. Among these, Building Equipment Contractors have the highest employment, with 3,447 jobs at 343 firms.
The Construction of Buildings subsector had the second highest employment of the three subsectors, providing 1,974 jobs at 402 firms. The top industry group under this subsector was Nonresidential Building Construction, with 1,126 jobs and 76 firms.
The last subsector, Heavy & Civil Engineering Construction, provided 1,602 jobs at 102 firms in 2022. The industry group with the highest employment under this subsector was Highway, Street & Bridge Construction, which provided 1,100 jobs at 53 firms.
| Table 2. Construction Industry in Southeast Minnesota, 2022 Annual Average | |||||
|---|---|---|---|---|---|
| NAICS | Industry | Number of Jobs | Number of Firms | Total Payroll | Avg. Annual Wage |
| 0 | Total, All Industries | 239,872 | 13,373 | $14,675,198,148 | $61,152 |
| 23 | Construction | 9,949 | 1,498 | $669,452,952 | $67,028 |
| 236 | Construction of Buildings | 1,974 | 402 | $126,227,915 | $63,752 |
| 2361 | Residential Building Construction | 849 | 327 | $43,630,731 | $51,220 |
| 2362 | Nonresidential Building Construction | 1,126 | 76 | $82,597,184 | $73,268 |
| 237 | Heavy and Civil Engineering Construction | 1,602 | 102 | $131,057,529 | $80,808 |
| 2371 | Utility System Construction | 452 | 34 | $36,860,484 | $81,640 |
| 2373 | Highway, Street & Bridge Construction | 1,100 | 53 | $91,121,701 | $81,328 |
| 238 | Specialty Trade Contractors | 6,373 | 994 | $412,167,508 | $64,532 |
| 2381 | Foundation, Structure & Building Exterior Contractors | 853 | 227 | $46,029,879 | $53,508 |
| 2382 | Building Equipment Contractors | 3,447 | 343 | $246,504,481 | $71,500 |
| 2383 | Building Finishing Contractors | 1,097 | 202 | $59,638,416 | $54,132 |
| 2389 | Other Specialty Trade Contractors | 975 | 222 | $59,994,732 | $59,956 |
| Source: Quarterly Census of Employment & Wages | |||||
Employment in the Construction industry in Southeast Minnesota has fluctuated over time along with the economy. After years of growth, the industry peaked with 10,743 jobs in 2004. However, the Great Recession caused employment to drop rapidly over the next 6 years, reaching a low of 7,757 jobs in 2010. Since then, the industry has slowly but steadily recovered, reaching 9,949 jobs in 2022.
As these employers continue to grow, there are many current job opportunities in the Construction industry in Southeast Minnesota. There were over 500 openings in the Construction industry in the second quarter of 2022. Just 2% of these job openings were Part-Time and Temporary or Seasonal, indicating the need for full-time and long-term workers. The median hourly wage offer was $21.12.
The Construction industry in Southeast Minnesota is a vital and growing part of the economy. It provides good-paying jobs and contributes to the overall quality of life for residents. The Construction industry has steadily recovered since the Great Recession, and there remain hundreds of job opportunities for those wanting to build a career in Construction.
Contact Amanda O'Connell, Labor Market Analyst, at amanda.oconnell@state.mn.us.
