By Mark Schultz
November 2021
Minnesota has continued to recover from all the unprecedented job loss that occurred at the onset of the COVID-19 pandemic according to the new third quarter 2021 updates to DEED's Quarterly Census of Employment and Wages data. A quick recap of job loss in the state shows that Minnesota lost 10.3% of its jobs from the first to the second quarter of 2020, a loss of over 295,000 jobs. While the region's jobs have rather steadily increased since the second quarter of 2020, the region has yet to gain back all of the jobs lost during this time. However, the region has regained about 79% of the lost jobs (232,406) (see Figure 1).
Over the year, from the third quarter of 2020 to the third quarter of 2021, Minnesota saw an increase of 109,282 jobs across all industries, equaling a bump of 4.1%. The largest increases were seen in Accommodation and Food Services (+28,120), Health Care and Social Assistance (+11,256) and Administrative Support and Waste Management (+11,074). Together the job gains in just these three industry sectors accounted for 46.2% of the total job gain over the year. The highest proportional growth, however, was experienced in Arts, Entertainment, and Recreation (+21.5%), Accommodation and Food Services (15.2%) and Mining (10.8%) (see Table 1).
| Table 1. Minnesota Job Changes (3rd Quarter 2020-2021 | ||||
|---|---|---|---|---|
| Industry Sector | 3rd Quarter | 3rd Quarter 2020-2021 | ||
| 2020 | 2021 | Numeric Change | Percent Change | |
| Total, All Industries | 2,683,944 | 2,793,226 | 109,282 | 4.1% |
| Agriculture, Forestry, Fishing, and Hunting | 24,222 | 23,911 | -311 | -1.3% |
| Mining | 5,543 | 6,139 | 596 | 10.8% |
| Construction | 142,291 | 151,846 | 9,555 | 6.7% |
| Manufacturing | 307,619 | 316,656 | 9,037 | 2.9% |
| Utilities | 13,348 | 13,494 | 146 | 1.1% |
| Wholesale Trade | 124,008 | 127,227 | 3,219 | 2.6% |
| Retail Trade | 278,169 | 282,135 | 3,966 | 1.4% |
| Transportation and Warehousing | 98,763 | 103,717 | 4,954 | 5.0% |
| Information | 46,042 | 46,265 | 223 | 0.5% |
| Finance and Insurance | 147,474 | 145,283 | -2,191 | -1.5% |
| Real Estate and Rental and Leasing | 34,279 | 34,946 | 667 | 1.9% |
| Professional, Scientific, and Technical Services | 152,846 | 159,391 | 6,545 | 4.3% |
| Management of Companies and Enterprises | 86,642 | 87,562 | 920 | 1.1% |
| Administrative & Support and Waste Management | 119,612 | 130,686 | 11,074 | 9.3% |
| Educational Services | 180,665 | 188,725 | 8,060 | 4.5% |
| Health Care and Social Assistance | 481,804 | 493,060 | 11,256 | 2.3% |
| Arts, Entertainment, and Recreation | 40,347 | 49,027 | 8,680 | 21.5% |
| Accommodation and Food Services | 185,609 | 213,729 | 28,120 | 15.2% |
| Other Services (except Public Administration) | 79,102 | 84,530 | 5,428 | 6.9% |
| Public Administration | 135,555 | 134,891 | -664 | -0.5% |
| Source: DEED Quarterly Census of Employment and Wages | ||||
Despite overall growth, not every industry sector saw job gains over the year, with three sectors experiencing job loss from the third quarter of 2020 to the third quarter of 2021. Included in these industry sectors that saw losses are Finance and Insurance (-2,191 or -1.5%), Public Administration (-664 or -0.5%), and Agriculture, Forestry, Fishing, and Hunting (-311 or -1.3%).
It's promising to see that Minnesota has rebounded so nicely from the pandemic, gaining back a large chunk of the jobs lost during the initial stages of COVID-19. Despite having a little more ground to make up, the state is on the right track to reach pre-pandemic job levels.
