By Tim O'Neill
September 2019
It’s all about the food. More specifically, Food Services and Drinking Places. This industry is one of the most easily-recognizable sectors, comprising restaurants, bars, tap rooms, taverns, cocktail lounges, caterers, food trucks, refreshments stands, and food service contractors. If food or drink is involved, you can bet that the services are in this industry sector.
As of annual 2018, 10,523 establishments were supplying just over 198,000 jobs in Food Services and Drinking Places across Minnesota. Nearly 173,500 of these jobs or 87.6 percent were in Restaurants. 10,587 jobs (5.3 percent) were in Drinking Places that serve alcoholic beverages, 10,044 jobs (5.1 percent) were in Food Service Contractors, 3,496 jobs (1.8 percent) were in Catering firms, and 444 jobs (0.2 percent) were in Mobile Food Services. Highly concentrated occupations within this industry typically require less education and have lower median wages, but are highly in demand across the state (see Table 1).
| Table 1. Food Services and Drinking Places Highly Concentrated Occupations in Minnesota | ||||
|---|---|---|---|---|
| Occupation | Employment | Median Wage | 2016-2026 Employment Change | |
| Projected Openings* | Percent | |||
| Combined Food Prep and Serving Workers | 66,060 | $11.57 | 70,610 | 12.0% |
| Waiters and Waitresses | 50,490 | $11.09 | 39,148 | 2.5% |
| Cooks, Restaurant | 28,480 | $14.29 | 17,376 | 7.2% |
| First-Line Supervisors of Food Prep and Serving Workers | 16,130 | $17.86 | 8,987 | 5.5% |
| Bartenders | 16,790 | $10.83 | 8,459 | -0.9% |
| Food Preparation Workers | 8,670 | $12.98 | 8,122 | 3.9% |
| Dishwashers | 7,390 | $12.09 | 5,617 | 0.3% |
| Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop | 6,890 | $11.61 | 7,811 | 2.2% |
| Cashiers | 65,840 | $11.72 | 60,124 | -0.4% |
| Dining Room and Cafeteria Attendants | 4,420 | $10.27 | 3,716 | 3.4% |
| *Projected Openings include both net new openings and replacement openings projected between 2016 and 2026
Source: BLS Industry-Occupation Matrix, DEED Occupational Employment Statistics (OES), DEED Employment Outlook |
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Employment trends in Food Services and Drinking Places have largely followed overall employment trends in recent years. During the Great Recession between 2007 and 2010, Food Services and Drinking Places lost 8,140 jobs, declining by 4.5 percent. Total employment during this time declined by 4.7 percent. Between 2010 and 2018 Food Services and Drinking Places gained 24,940 jobs, expanding by 14.4 percent. This slightly outpaced total employment growth during that time, 12.4 percent. More recently, between 2013 and 2018 employment growth in this industry has been most prominent in the Metro Area and Southeast Minnesota (see Table 2).
Interestingly, where the number of establishments in Food Services and Drinking Places declined by 688 (-6.7 percent) between 2006 and 2015, such establishments have spiked upwards by 868 (9.0 percent) in the last two years.
| Table 2. Food Services and Drinking Places Employment in Minnesota | |||||
|---|---|---|---|---|---|
| Area | Number of Firms | Number of Jobs | Share of MN Food Services and Drinking Places Jobs | 2013-2017 Job Change | Average Annual Wage |
| Minnesota | 10,523 | 198,064 | 100.0% | 13,661 (7.4%) | $18,876 |
| Metro Area | 5,812 | 124,054 | 62.6% | 10,437 (9.2%) | $20,904 |
| Central MN | 1,115 | 19,221 | 9.7% | 367 (1.9%) | $15,080 |
| Southeast MN | 942 | 16,685 | 8.4% | 1,361 (8.9%) | $16,900 |
| Northwest MN | 1,105 | 15,161 | 7.7% | 556 (3.8%) | $14,716 |
| Northeast MN | 687 | 11,413 | 5.8% | 769 (7.2%) | $15,652 |
| Southwest MN | 763 | 11,108 | 5.6% | 204 (1.9%) | $13,572 |
| Source: DEED Quarterly Census of Employment and Wages (QCEW) | |||||
According to the North American Industrial Classification System (NAICS), industries in the Forestry and Logging subsector grow and harvest timber on a long production cycle, 10 years or more. Because of this, activities with shorter production cycles, like Christmas tree production, are actually classified in Crop Production. Forestry and Logging also involves reforestation and timber production, which typically require the use of specialized machinery. Establishments gathering forest products, such as gums, barks, balsam needles, fibers, and truffles, are also included in this subsector.
With 221 establishments supplying 944 jobs, Forestry and Logging is a very small but highly-specialized industry sector in Minnesota. This sector is also highly concentrated in northern Minnesota. More specifically, about half (47.9 percent) of the state's Forestry and Logging jobs are located in Northeast Minnesota, with another third (33.3 percent) located in Northwest Minnesota. Taken together, four of every five of the state's Forestry and Logging jobs are in Northeast and Northwest Minnesota.
When we think about Forestry and Logging, occupations that come to mind usually include logging equipment operators, foresters, mobile heavy equipment mechanics, and sawing machine operators. These occupations can be physically demanding, with workers spending most of their time outdoors, sometimes in poor weather conditions and isolated areas. Typically, just a high school diploma is needed for these occupations, and median wages fall north of $30 per hour for foresters. Numerous other occupations, from heavy truck drivers to office clerks to supervisors are also found in this industry sector (see Table 1).
| Table 1. Forestry and Logging | |||||
|---|---|---|---|---|---|
| Occupation | Employment | Median Wage | 2016-2026 Employment Change | ||
| Projected Openings* | Percent | ||||
| Logging Equipment Operators | 370 | $19.57 | 929 | 8.6% | |
| Heavy and Tractor-Trailer Truck Drivers | 35,420 | $22.09 | 19,259 | 6.4% | |
| First-Line Supervisors or Farming, Fishing, and Forestry Workers | 200 | $28.28 | 319 | 11.2% | |
| Office Clerks, General | 55,750 | $17.03 | 33,336 | -2.4% | |
| Mobile Heavy Equipment Mechanics | 3,440 | $27.96 | 1,452 | 7.4% | |
| Secretaries and Administrative Assistants | 12,320 | $26.15 | 7,176 | -17.2% | |
| Laborers and Freight, Stock, and Material Movers, Hand | 40,900 | $15.53 | 21,813 | 5.5% | |
| Foresters | 380 | $31.27 | 91 | 5.6% | |
| Sawing Machine Setters, Operators, and Tenders, Wood | 940 | $14.66 | 558 | 4.4% | |
| Bookkeeping, Accounting, and Auditing Clerks | 32,090 | $20.34 | 21,936 | -2.8% | |
| *Projected Openings include both net new openings and replacement openings projected between 2016 and 2026
Source: BLS Industry-Occupation Matrix, DEED Occupational Employment Statistics (OES), DEED Employment Outlook |
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Statewide employment in Forestry and Logging has seesawed over the past two decades, with especially large swings in 2004, 2015, and 2018 (see Figure 1). It should also be noted that the number of Forestry and Logging establishments dropped from 221 in 2006 to 190 in 2012, before rising back to 221 in 2018. Between 2016 and 2026 this industry is projected to grow by 6.7 percent in Minnesota, equivalent to nearly 200 jobs.
Wondering where your countertops, kitchen cabinets, office furniture, or even mattresses are made? There's a chance they may be produced right here in the State of Minnesota. As of annual 2018, 494 establishments supplied 9,632 jobs in Furniture and Related Product Manufacturing in the state. Broken down, over half of these jobs (5,066 jobs) were in Wood Kitchen Cabinet and Countertop Manufacturing, just over a quarter (2,595 jobs) were in Office Furniture (including Fixtures) Manufacturing, over one-tenth (1,234 jobs) were in Household and Institutional Furniture Manufacturing, and nearly one-tenth (727 jobs) were in Mattress Manufacturing.
Regionally, while the Metro Area had the most Furniture and Related Product Manufacturing jobs of any planning region in the state (4,126 such jobs), Central Minnesota (2,759 such jobs) and Southeast Minnesota (1,450 such jobs) had higher concentrations of employment in this industry subsector. To get an idea of those occupations within Furniture and Related Product Manufacturing, see Table 1.
| Table 1. Furniture and Related Product Manufacturing Highly Concentrated Occupations in Minnesota | |||||
|---|---|---|---|---|---|
| Occupation | Employment | Median Wage | 2016-2026 Employment Change | ||
| Projected Openings* | Percent | ||||
| Cabinetmakers and Bench Carpenters | 2,780 | $19.40 | 1,460 | 3.1% | |
| Assemblers and Fabricators, All Other | 32,050 | $16.02 | 18,217 | -14.6% | |
| First-Line Supervisors of Production and Operating Workers | 12,050 | $29.47 | 4,219 | 3.0% | |
| Laborers and Freight, Stock, and Material Movers, Hand | 40,900 | $15.53 | 21,813 | 5.5% | |
| Furniture Finishers | 560 | $17.61 | 263 | 0.4% | |
| Sewing Machine Operators | 2,160 | $13.35 | 1,485 | -2.0% | |
| Carpenters | 16,220 | $23.77 | 8,852 | 5.6% | |
| Sales Representatives, Wholesale and Manufacturing | 34,190 | $31.08 | 13,486 | 5.8% | |
| Shipping, Receiving, and Traffic Clerks | 14,860 | $17.07 | 5,437 | -0.1% | |
| General and Operations Managers | 45,400 | $43.59 | 12,580 | 7.4% | |
| *Projected Openings include both net new openings and replacement openings projected between 2016 and 2026
Source: BLS Industry-Occupation Matrix, DEED Occupational Employment Statistics (OES), DEED Employment Outlook |
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Employment levels in Furniture and Related Product Manufacturing were severely affected in the years before and during the Great Recession. More specifically, between 2005 and 2010 this subsector of manufacturing lost 5,061 jobs in Minnesota, declining by 38.6 percent (see Figure 1). Comparatively, overall manufacturing employment levels declined by 15.8 percent between 2005 and 2010. Employment in the total labor market declined by 2.9 percent during that period of time.
Since reaching a statewide low of 8,059 jobs in 2010, employment levels in Furniture and Related Product Manufacturing have rebounded slightly. Between 2010 and 2018 this subsector added 1,573 jobs, expanding by 19.5 percent. Comparatively, total manufacturing employment expanded by 10.1 percent, and employment in the total labor market expanded by 12.4 percent. Looking forward, the Department of Employment and Economic Development (DEED) projects employment in Furniture and Related Product Manufacturing to decline by 1.4 percent between 2016 and 2026. This is equivalent to approximately 135 jobs.
After reading all about Furniture and Related Product Manufacturing in the previous industry snapshot, you may want to discover more about where much of this furniture may go: Furniture and Home Furnishings Stores. According to the North American Industry Classification System (NAICS), establishments in this subsector retail new furniture and home furnishings from fixed point-of-sale locations. Fairly self-explanatory with the industry title. You may not realize what's included, however, from this industry title. Beyond your typical household, office, and outdoor furniture, this industry includes those establishments that retail beds and mattresses, rugs and carpets, vinyl floor coverings and floor tile, curtains and drapes, picture frames, kitchenware, bath shops, linen stores, and even wood-burning stove stores.
As of annual 2018, 841 establishments were supplying 8,800 jobs in Furniture and Home Furnishings Stores in Minnesota. As such, this is a fairly small subsector, making up about 3 percent of the state's total retail trade employment. Zooming in on this subsector reveals that over half (54.7 percent) of its employment is in Furniture Stores, with the other half distributed among Floor Covering Stores, All Other Home Furnishings Stores, and a very small share in Window Treatment Stores (see Table 1). See Table 2 for those occupations that are highly concentrated in Furniture and Home Furnishings Stores.
Statewide employment in Furniture and Home Furnishings Stores hit a pre-recessionary peak of 11,814 jobs in 2006. Over the next four years this subsector would lose 3,565 jobs, declining by 30.2 percent. For reference, total employment declined by 4.2 percent during that time. Between 2010 and 2017 the subsector regained just over 900 jobs, growing by 11.0 percent, which was similar to total employment growth during that time of 11.3 percent. More recently, between 2017 and 2018 Furniture and Home Furnishings Stores employment declined by 3.9 percent, equivalent to 355 jobs. This recent loss was all from Home Furnishings Stores.
| Table 1. Furniture and Home Furnishings Stores Employment in Minnesota, 2108 | |||||
|---|---|---|---|---|---|
| Industry (NAICS) | Number of Firms | Number of Jobs | Average Annual Wage | 2013 – 2018 Job Change | |
| Total, All Industries | 175,211 | 2,881,140 | $58,032 | 188,970 (7.0%) | |
| Retail Trade (44 - 45) | 18,649 | 298,489 | $30,680 | 11,547 (4.0%) | |
| Furniture and Home Furnishings Stores (442) | 841 | 8,800 | $37,752 | 155 (1.8%) | |
| Furniture Stores (442110) | 335 | 4,813 | $42,640 | 273 (6.0%) | |
| Floor Covering Stores (442210) | 204 | 1,267 | $48,984 | 85 (7.2%) | |
| Window Treatment Stores (442291) | 33 | 133 | $51,376 | 15 (12.7%) | |
| All Other Home Furnishings Stores (442299) | 269 | 2,586 | $22,412 | -218 (-7.8%) | |
| Source: DEED Quarterly Census of Employment and Wages (QCEW) | |||||
| Table 2. Furniture and Home Furnishings Stores Highly Concentrated Occupations in Minnesota | |||||
|---|---|---|---|---|---|
| Occupation | Employment | Median Wage | 2016-2026 Employment Change | ||
| Projected Openings* | Percent | ||||
| Retail Salespersons | 84,240 | $11.60 | 54,695 | -1.0% | |
| Cashiers | 66,230 | $10.78 | 60,124 | -0.4% | |
| First-Line Supervisors of Retail Sales Workers | 21,250 | $18.94 | 10,079 | 5.4% | |
| Laborers and Freight, Stock, and Material Workers, Hand | 40,900 | $15.53 | 21,813 | 5.5% | |
| Stock Clerks and Order Fillers | 34,550 | $12.71 | 19,781 | 3.4% | |
| Light Truck or Delivery Services Drivers | 15,550 | $17.58 | 8,107 | 5.6% | |
| Office Clerks, General | 55,750 | $17.03 | 33,336 | -2.4% | |
| General and Operations Managers | 45,400 | $43.59 | 12,580 | 7.4% | |
| Customer Service Representatives | 57,240 | $18.11 | 29,943 | 0.7% | |
| Bookkeeping, Accounting, and Auditing Clerks | 32,090 | $20.34 | 21,936 | -2.8% | |
| *Projected Openings include both net new openings and replacement openings projected between 2016 and 2026
Source: BLS Industry-Occupation Matrix, DEED Occupational Employment Statistics (OES), DEED Employment Outlook |
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