by Cameron Macht
March 2019
Encompassing Education, Public Health, and Veterans’ Affairs, the Administration of Human Resource Programs industry provides extremely important government functions throughout the state. These organizations accounted for more than 15,800 jobs at 460 establishments across the state in the third quarter of 2018, supplying vital services and support to a wide variety of stakeholders, ranging literally from the cradle to the grave and most of the important moments in between. For example, public health programs include both maternity child health programs and coroners’ offices. (See Table 1.)
| Table 1. Administration of Human Resource Programs Employment in Minnesota, Qtr. 3 2018 | ||||||
|---|---|---|---|---|---|---|
| Industry | Number of Firms | Number of Jobs | Federal
Government Share |
State
Government Share |
Local
Government Share |
Average
Annual Wage |
| Administration of Human Resource Programs | 460 | 15,806 | 12.8% | 52.0% | 35.3% | $67,028 |
| Administration of Education Programs | 14 | 892 | 0.1% | 83.1% | 16.8% | $80,756 |
| Administration of Public Health Programs | 66 | 2,536 | 0.5% | 72.2% | 27.4% | $68,744 |
| Administration of Human Resource Programs | 366 | 10,707 | 4.6% | 51.4% | 44.0% | $65,156 |
| Administration of Veterans' Affairs | 14 | 1,669 | 90.5% | 8.4% | 1.0% | $69,524 |
| Source: DEED Quarterly Census of Employment and Wages (QCEW) | ||||||
As shown in Table 1, the largest subsector is the Administration of Human Resource Programs, which includes "government establishments primarily engaged in the planning, administration, and coordination of programs for public assistance, social work, and welfare activities. The administration of Social Security, disability insurance, Medicare, unemployment insurance, and workers' compensation programs are included in this industry.1 Over half of these jobs are in state government, and another 44 percent are in local government, while less than 5 percent are federal jobs. Employment has declined by more than 1,200 jobs over the past decade – although it's important to note that all of those jobs and more were cut in the Twin Cities metro area, while employment was actually increasing in Greater Minnesota.
Administration of Public Health Programs "comprises government establishments primarily engaged in the planning, administration, and coordination of public health programs and services, including environmental health activities, mental health, categorical health programs, health statistics, and immunization services," as well as public health-related inspections.2 Nearly three-quarters of the more than 2,500 jobs in the state are in state government, while the other 27 percent are in local government.
In contrast, the federal government employs over 90 percent of the workers in the Administration of Veterans' Affairs industry, which provides programs of assistance, training, counseling, and other services to veterans and their dependents.3 Eighty percent of these jobs are located in the Twin Cities metro area, and the industry has nearly tripled in size since 2008, expanding 164.5 percent.
Finally, the smallest sector is the Administration of Education Programs, which encompasses the central coordination, planning, supervision, and administration of funds, policies, intergovernmental activities, statistical reports and data collection, and centralized programs for educational administration." This would include the state education department and University boards/regents, but does not include local school boards. Again, over 80 percent of these jobs are in the Twin Cities, and employment has increased almost 50 percent in the past decade.
1 923130 Administration of Human Resources Programs (except Education, Public Health, and Veterans' Affairs Programs). Retrieved from www.census.gov/cgi-bin/sssd/naics/naicsrch?code=923130&search=2017%20NAICS%20Search
2 923120 Administration of Public Health Programs. Retrieved from www.census.gov/cgi-bin/sssd/naics/naicsrch?code=923120&search=2017%20NAICS%20Search
3 923140 Administration of Veterans' Affairs. Retrieved from www.census.gov/cgi-bin/sssd/naics/naicsrch?code=923140&search=2017%20NAICS%20Search
4 923110 Administration of Education Programs. Retrieved from www.census.gov/cgi-bin/sssd/naics/naicsrch?code=923110&search=2017%20NAICS%20Search
With 131,458 jobs at 7,860 business establishments, Administrative and Support Services is the fifth largest industry at the 3-digit NAICS code level. Businesses operating in this sector primarily do work for other businesses. According to the Census definition, "the processes employed in this sector (e.g., general management, personnel administration, clerical activities, cleaning activities) are often integral parts of the activities of establishments found in all sectors of the economy". Many of the activities performed in this subsector are ongoing routine support functions and that businesses have traditionally done for themselves. Recent trends, however, are to contract or purchase such services from businesses that specialize in such activities and can, therefore, provide the services more efficiently."1
The largest administrative support industry is Employment Services, with just under 60,000 jobs at about 1,700 establishments statewide. Temporary Help Services, also known as staffing agencies, account for over 90 percent of those jobs. While temporary staffing employment dropped over the past year, it is up by nearly 5,800 jobs over the past decade, while the number of staffing establishments jumped by 30 percent since 2008. In addition, employment placement agencies and professional employer organizations both provide about 2,700 jobs in the state, and both have also been seeing growth in recent years.
The second largest industry is Services to Buildings and Dwellings, with 35,070 jobs at 3,517 establishments. This includes about 18,000 jobs in janitorial services and about 14,300 jobs at landscaping services. Services to Buildings and Dwellings also added more than 5,000 jobs over the past decade, including 805 net new jobs in the last year.
Business Support Services – which includes collection agencies, telephone call centers, mail and parcel services, and document preparation services – had more than 10,700 jobs statewide but suffered recent losses. In contrast, Investigation and Security Services was seeing rapid growth – adding almost 750 jobs over the past year, an 8 percent increase – and now has more than 10,350 jobs at 294 firms.
Smaller industries include Other Support Services – running the gamut through auctioneers, coupon redemption services, document shredding services, meter reading and utility locating, traffic control and flagging, and water softening and conditioning services – which had 7,810 jobs at 688 small businesses; Office Administrative Services – which primarily serves the health care and hospitality industries, with just under 5,000 jobs after cutting payrolls 12 percent in the past year; and Travel Arrangement and Reservation Services – where employment is split between travel agencies and tour operators (See Table 1).
| Table 1. Minnesota Industry Employment Statistics | |||||||
|---|---|---|---|---|---|---|---|
| NAICS Industry Title | NAICS Code | Qtr. 3 2018 Data | Change in Jobs, Q3 2017-Q3 2018 | Qtr. 3 2018 Data | Average Annual Wage | ||
| Number of Firms | Number of Jobs | Numeric | Percent | Quarterly Payroll | |||
| Total, All Industries | 0 | 177,652 | 2,894,506 | 27,696 | 1.0% | $40,435,843,735 | $55,848 |
| Administrative and Support Services | 561 | 7,860 | 131,458 | 195 | 0.1% | $1,297,965,600 | $39,468 |
| Office Administrative Services | 5611 | 521 | 4,864 | -666 | -12.0% | $96,415,672 | $79,248 |
| Facilities Support Services | 5612 | 93 | 666 | -68 | -9.3% | $7,190,887 | $43,160 |
| Employment Services | 5613 | 1,681 | 59,241 | -72 | -0.1% | $562,673,831 | $37,960 |
| Employment Placement Agencies | 56131 | 361 | 2,696 | 15 | 0.6% | $51,001,952 | $75,660 |
| Temporary Help Services | 56132 | 1,186 | 53,859 | -104 | -0.2% | $487,195,340 | $36,140 |
| Professional Employer Organizations | 56133 | 134 | 2,685 | 16 | 0.6% | $24,476,539 | $36,452 |
| Business Support Services | 5614 | 733 | 10,723 | -378 | -3.4% | $134,241,717 | $50,076 |
| Travel Arrangement and Reservation Services | 5615 | 333 | 2,731 | -52 | -1.9% | $44,725,665 | $65,468 |
| Investigation and Security Services | 5616 | 294 | 10,352 | 748 | 7.8% | $87,083,582 | $33,644 |
| Services to Buildings and Dwellings | 5617 | 3,517 | 35,070 | 805 | 2.3% | $279,534,216 | $31,876 |
| Other Support Services | 5619 | 688 | 7,810 | -121 | -1.5% | $86,100,030 | $44,096 |
| Source: DEED Quarterly Census of Employment and Wages | |||||||
1 561 Administrative and Support Services. Retrieved from www.census.gov/cgi-bin/sssd/naics/naicsrch?code=561&search=2017%20NAICS%20Search
Since the Twin Cities are home to the top ranked airport in North America according to a survey from Airports Council International1, the Air Transportation industry is a source of pride for the state of Minnesota. Data from the Federal Aviation Administration show that Minneapolis-St. Paul International Airport is the 17th busiest in the United States, ranking between Boston and Detroit2. With more than 14,000 jobs in 2018, Minnesota has a location quotient of 1.4 – meaning that employment in Air Transportation is more concentrated in Minnesota than in the United States as a whole.
The Air Transportation industry, however, has experienced many ups and downs in Minnesota over time. The terrorist attacks on September 11, 2001, severely impacted the airline industry's employment, leading to a 10 percent decline nationwide and a 23 percent drop in the state. Employment plunged sharply again from 2005 to 2006, accentuated by Northwest Airlines' filing for Chapter 11 bankruptcy protection, ironically on the same day as Delta Air Lines.3 Then in October 2008 those two airlines merged to form "a carrier that today is the most profitable in the world." 4 Overall, employment has been increasing in the state since grounding out at 12,444 jobs in the third quarter of 2012 (see Figure 1).
Ninety-five percent of Minnesota's Air Transportation jobs are located in the Twin Cities metro area, but 60 percent of Air Transportation establishments are located in Greater Minnesota. This is because Air Transportation is classified into two main subsectors: "scheduled air carriers fly regular routes on regular schedules and operate even if flights are only partially loaded. Nonscheduled carriers often operate during nonpeak time slots at busy airports. These establishments have more flexibility with respect to choice of airport, hours of operation, load factors, and similar operational characteristics."5
In Minnesota more than 97 percent of employment is in scheduled air transportation, while the other 3 percent of jobs are with nonscheduled carriers. In addition to passengers, this also includes the shipping of mail, cargo, and other freight. Similarly, 97 percent of employment is concentrated on passengers, with only 3 percent focusing on freight and mail.
1 "MSP Airport Ranked As Best In North America For 2nd Consecutive Year." WCCO 4 CBS Minnesota. Retrieved from minnesota.cbslocal.com/2018/03/06/msp-airport-ranked-as-best-in-north-america-for-2nd-consecutive-year/
2 Calendar Year 2017 Enplanements at All Commercial Service Airports (by Rank), Updated November 7, 2018. Retrieved from www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/passenger/media/cy17-commercial-service-enplanements.pdf
3 Baxter, Annie and Mark Zdechlik. "Northwest files for bankruptcy." Minnesota Public Radio. Retrieved from news.minnesota.publicradio.org/features/2005/09/14_baxtera_nwa/
4 Painter, Kristen Leigh. "Northwest and Delta 10 years on: lots of profit, lots of flights at MSP." StarTribune. October 30, 2018. Retrieved from www.startribune.com/northwest-and-delta-10-years-on-lots-of-profit-lots-of-flights-at-msp/498925371/
5 481 Air Transportation. Retrieved from www.census.gov/cgi-bin/sssd/naics/naicsrch?code=481&search=2017%20NAICS%20Search
Closing in on 500,000 jobs in 2018, Health Care and Social Assistance is easily the largest employing sector in the state of Minnesota. With over 155,000 jobs, Ambulatory Health Care Services is the largest industry in health care, and the fourth largest employing 3-digit NAICS code overall, behind just Educational Services, Food Services and Drinking Places, and Professional, Scientific, and Technical Services.
Ambulatory Health Care Services ranks in the top six industries in all six planning regions of the state, including the number one spot in Southeast Minnesota, where it accounts for 13.3 percent of total employment. Encompassing offices of physicians, dentists, and other health practitioners as well as outpatient care centers, medical and diagnostic laboratories, and home health care services, ambulatory health care is among the fastest and largest expanding segments of Minnesota's economy (see Table 1).
| Table 1. Minnesota Health Care Employment | ||||||||
|---|---|---|---|---|---|---|---|---|
| NAICS Industry Title | NAICS Code | Q3 2008-Q3 2018 | Average Annual Wages | 1-year Trend Q3 2017-Q3 2018 | 10-year Trend Q3 2008-Q3 2018 | |||
| Number
of Firms |
Number
of Jobs |
Numeric | Percent | Numeric | Percent | |||
| Total, All Industries | 0 | 177,652 | 2,894,506 | $55,848 | 27,696 | 1.0% | 200,977 | 7.5% |
| Health Care and Social Assistance | 62 | 17,117 | 498,878 | $52,832 | 8,789 | 1.8% | 86,325 | 20.9% |
| Ambulatory Health Care Services | 621 | 7,839 | 156,687 | $75,348 | 3,433 | 2.2% | 32,525 | 26.2% |
| Offices of Physicians | 6211 | 1,677 | 73,767 | $105,092 | 1,172 | 1.6% | 11,011 | 17.5% |
| Offices of Dentists | 6212 | 1,859 | 16,723 | $56,992 | 84 | 2.4% | 873 | 5.5% |
| Offices of Other Health Practitioners | 6213 | 2,738 | 17,231 | $42,276 | 546 | 3.3% | 6,273 | 57.2% |
| Outpatient Care Centers | 6214 | 489 | 11,931 | $75,972 | 339 | 2.9% | 2,202 | 22.6% |
| Medical and Diagnostic Laboratories | 6215 | 132 | 3,974 | $67,028 | 151 | 3.9% | 1,607 | 67.9% |
| Home Health Care Services | 6216 | 625 | 25,697 | $29,484 | 756 | 3.0% | 9,434 | 58.0% |
| Other Ambulatory Health Care Services | 6219 | 319 | 7,363 | $60,164 | 85 | 1.2% | 1,127 | 18.1% |
| Source: DEED Quarterly Census of Employment and Wages | ||||||||
Minnesota's growing and aging population ensures that there will also be a tremendous amount of future demand. According to DEED's Employment Outlook program, Ambulatory Health Care Services is expected to add more than 38,000 net new jobs in the next decade, which would account for more than one in every five new jobs added in the state from 2016 to 2026. That is the largest projected job growth of any industry in the state, and, with a 26 percent projected growth rate, it also ranks as the third fastest growing industry (see Table 2).
| Table 2. Minnesota Industry Employment Projections, 2016-2026 | |||||
|---|---|---|---|---|---|
| Industry | NAICS Code | Estimated Employment 2016 | Projected Employment 2026 | Percent Change 2016-2026 | Numeric Change 2016-2026 |
| Total, All Industries | 0 | 3,097,300 | 3,278,900 | 5.9% | 181,600 |
| Health Care and Social Assistance | 62 | 462,083 | 540,500 | 17.0% | 78,417 |
| Ambulatory Health Care Services | 621 | 146,987 | 185,300 | 26.1% | 38,313 |
| Offices of Physicians | 6211 | 69,181 | 80,700 | 16.7% | 11,519 |
| Offices of Dentists | 6212 | 16,228 | 17,500 | 7.8% | 1,272 |
| Offices of Other Health Practitioners | 6213 | 15,532 | 20,200 | 30.1% | 4,668 |
| Outpatient Care Centers | 6214 | 11,262 | 14,000 | 24.3% | 2,738 |
| Medical and Diagnostic Laboratories | 6215 | 3,515 | 5,400 | 53.6% | 1,885 |
| Home Health Care Services | 6216 | 24,042 | 38,000 | 58.1% | 13,958 |
| Other Ambulatory Health Care Services | 6219 | 7,227 | 9,500 | 31.5% | 2,273 |
| Source: DEED Employment Outlook | |||||
