By Nick Dobbins
December 2020
Monthly analysis is based on seasonally adjusted employment data.
Yearly analysis is based on unadjusted employment data.
Minnesota employers shed 12,600 jobs (0.5%) over the month in November on a seasonally-adjusted basis. It was the first monthly decline since April, likely driven by a combination of increased COVID-related precautions and early snow in many parts of the state. Private sector employers lost 10,300 jobs (0.4%) while their public sector counterparts lost 2,300 jobs (0.6%).
Over the year the state lost 494,662 jobs (6.4%), which was a slightly worse mark than October's 6.2% decline. Service providers continued to bear the worst of the losses, down 172,866 (6.8%). Goods producers fared slightly better, losing 18,796 jobs or 4.1%. This was an improvement over October's -4.7% change.
Employment in Mining and Logging was flat in November on a seasonally adjusted basis, holding at 5,700. Over the year Mining and Logging employers lost 920 jobs (14%). This was an improvement over October's 15.3% over-the-year decline.
Construction employment was down by 1,500 (1.2%) on a seasonally adjusted basis in November. The decline was likely due in part to the large snowstorm that hit the state early in the month. Annually the supersector lost 4,407 jobs or 3.4%, an improvement over October's 5.2% decrease. Construction of Buildings was down 7.4% (2,148 jobs), and Specialty Trade Contractors were down 3% (2,426 jobs). Heavy and Civil Engineering Construction added 167 jobs or 1%.
Employment in Manufacturing was down by 1,900 (0.6%) in November. Durable Goods Manufacturers lost 1,400 jobs (0.7%), and Non-Durable Goods Manufacturers lost 500 (0.4%). Over the year employers in Manufacturing shed 13,469 jobs (4.2%). Durable Goods lost 12,296 jobs (6%), and Non-Durable Goods lost 1,173 (1%). Food Manufacturing, the only published component of Non-Durable Goods in Minnesota, added 1,825 jobs (3.9%), meaning the losses came from unpublished components, which includes industries such as textile and paper manufacturing.
Trade, Transportation, and Utilities employment was down 1,200 (0.2%) in November, with all of the declines coming in Retail Trade (down 3,700 or 1.3%). Wholesale Trade was up 1,100 jobs (0.9%), and Transportation, Warehousing, and Utilities added 1,400 jobs (1.3%). On an annual basis the supersector lost 7,619 jobs (1.4%). Wholesale Trade lost 4,056 jobs (3.2%), and Transportation, Warehousing, and Utilities lost 2,827 (2.5%), while Retail Trade dipped back into negative over-the-year growth for the first time in four months, down 736 jobs or 0.2%. This recent slump in Retail Trade suggests a smaller-than-usual holiday employment increase for the sector, perhaps because employment levels had already been running higher than usual, significantly outperforming most sectors in the state in recent months.
Information employment was down by 600 (1.5%) in November. Over the year the supersector lost 6,990 jobs or 15.1%. It was the second-largest proportional over-the-year decline of any supersector in the state after Leisure and Hospitality as the long-struggling industry group continued to lose jobs.
Employment in Financial Activities was up by 2,100 (1.1%) in November. Real Estate and Rental and Leasing added 1,100 jobs (3.5%), while Finance and Insurance added 1,000 jobs (0.6%). Over the year the supersector lost 2,073 jobs (1.1%). It was the best performance of any supersector in the state on a seasonally adjusted basis. Real Estate and Rental and Leasing lost 2,982 jobs (8.6%), but the larger segment of the supersector, Finance and Insurance, actually added jobs, up 909 or 0.6%.
Professional and Business Services employers added 1,900 jobs (0.5%) in November. All three component sectors grew, with Management of Companies and Enterprises adding 800 jobs (0.9%) and Administrative and Support and Waste Management and Remediation Services adding 900 (0.2%), while the largest component, Professional, Scientific, and Technical Services added 200 jobs or just 0.1%. On an annual basis the supersector lost 7,758 jobs (2%). All three component sectors posted negative growth. Professional, Scientific, and Technical Services lost 5,691 jobs, or 3.6%, driving the declines. Management of Companies and Enterprises lost 1,631 jobs (1.8%), while Administrative and Support and Waste Management and Remediation Services lost 436 jobs (0.3%).
Educational and Health Services added 1,200 jobs (0.2%) in November. Both component sectors added jobs, with Educational Services up 300 (0.5%) and Health Care and Social Assistance up 900 (0.2%). Over the year Educational and Health Services lost 29,584 jobs (5.3%). Educational Services lost 6,005 jobs (8%), with most of that loss coming in Colleges, Universities, and Professional Schools (down 3,908 or 11.6%), while Health Care and Social Assistance lost 23,579 jobs (4.9%) with declines in every published component sector.
Leisure and Hospitality employment was down by 10,400 (5%) in November on a seasonally adjusted basis. It was the largest monthly decline of any supersector and the first over-the-month loss since April, likely driven by a combination of early winter weather and an increase in COVID cases leading to tightened restrictions on businesses. Over the year Leisure and Hospitality lost 76,008 jobs (28.4%). It remained the worst-performing supersector on an annual basis, as it has since the start of the pandemic.
Employment in Other Services was up slightly in November as the supersector added 100 jobs or 0.1%. Over the year Other Services' employers lost 10,786 jobs or 9.4%. This was worse than October's 7.8% annual decline, the first such monthly decline in over-the-year growth since April. Religious, Grantmaking, Civic, Professional, and Other Organizations were down 2.2% (1,380 jobs) from 1.2% in October, and Repair and Maintenance was down 0.3% (60 jobs) after being up 2.9% in October.
Government employment was down by 2,300 (0.6%) in November. Federal employers shed 1,600 jobs (4.7%), as Census-related activities continued to wind down, and Local employers dropped 1,100 jobs (0.4%). State employers added 400 jobs (0.4%). Over the year Government employers lost 32,048 jobs (7.3%). Local Government was down 24,579 jobs (8.2%) with losses in both educational and non-educational services, and State Government lost 7,806 jobs (7.4%) with most of those declines coming from State Government Educational Services (down 7,533 or 11.9%).
