Southeast Minnesota is a health care and agricultural powerhouse. The region is home to the renowned Mayo Clinic and some of the world's most recognized food companies and brands.
Advanced manufacturing is especially strong here, with machinery, chemicals, and electronics among the top products.
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11/27/2023 9:00:00 AM
Amanda O'Connell
As the holiday shopping season kicks into high gear, Southeast Minnesota's Retail Trade sector showcases its economic significance, ranking as the third-largest industry and accounting for 10.8% of the region's total employment, or about one in every 9 jobs. In the second quarter of 2023, the Retail Trade industry had 1,589 establishments and provided 26,522 jobs, with an average annual wage of $32,292, highlighting its vital role in the local economy (Table 1).
The largest employing subsectors include General Merchandise Retailers (5,866 jobs & 113 firms), Food & Beverage Stores (5,162 jobs & 213 firms), Gasoline Stations & Fuel Dealers (3,927 jobs & 221 firms), and Motor Vehicle & Parts Dealers (3,332 jobs & 235 firms). Together, these four subsectors made up almost 70% of total employment in the Retail Trade industry. Among the nine subsectors, Motor Vehicle & Parts Dealers had the highest average annual wage at $55,120, followed by Furniture, Home Furnishings, Electronics, & Appliance Retailers ($46,176) and Health & Personal Care Retailers ($40,560).
Demand has remained high for Retail Trade workers in the region. According to DEED's Job Vacancy Survey for the second quarter of 2022, the industry recorded 3,707 job vacancies, ranking as the second highest number of job vacancies among 17 industries. Remarkably, 93% of these Retail Trade vacancies required a high school diploma or less, and 67% of the openings required less than one year of experience, indicating that opportunities in the Retail Trade are readily accessible for individuals seeking employment.
As the holiday season approaches, a seasonal surge in employment is typically evident in the Retail Trade sector. Between 2017 and 2022, employment consistently increased from September to December. However, despite this positive monthly trend, the industry experienced an overall decline in employment from 2017 to 2021, with December figures dropping from 12,649 jobs in 2017 to 12,077 jobs in 2021—a decline of 572 jobs.
In contrast, December 2022 marked a turning point for the Rochester metropolitan statistical area (MSA), now boasting the highest Retail Trade employment level since 2019. Furthermore, in September 2023, employment in the Retail Trade sector reached its highest-ever recorded figure for the Rochester MSA. Despite the overall decline from 2017 to 2021, this upward trajectory hints at a promising resurgence in the industry, potentially reflecting positive economic shifts and robust hiring during the holiday season.
Over the years, the demographic and work patterns within the Retail Trade sector have changed from first quarter 2013 to first quarter 2023. The percentage of workers in Retail Trade has increased among the age groups of under 19 years, 25 to 44, 55 to 64, and those 65 years and older. Additionally, median hourly wages have increased for all age categories, with the most pronounced percentage growth observed in the youngest two groups between 2013 and 2023. Lastly, the median number of hours worked each quarter has decreased across all ages except for the youngest and oldest workers, who have reported an uptick in the median hours they work, marking a distinctive shift from a decade ago (Table 2).
| Table 2. Southeast Workforce Demographics by Age Group, Retail Trade, Q1 2013-2023 | ||||||
|---|---|---|---|---|---|---|
| Southeast Minnesota | Percentage of Workers | Median Hourly Wage | Median Hours Worked (Per Qtr.) | |||
| 2013 | 2023 | 2013 | 2023 | 2013 | 2023 | |
| Total, all ages | 100.0% | 100.0% | $10.00 | $16.58 | 281 | 247 |
| 19 years & under | 16.6% | 19.5% | $7.98 | $15.07 | 110 | 120 |
| 20 to 24 years | 16.6% | 13.4% | $9.14 | $16.33 | 234 | 233 |
| 25 to 44 years | 31.9% | 32.2% | $12.00 | $19.25 | 415 | 408 |
| 45 to 54 years | 15.9% | 12.4% | $12.54 | $19.56 | 436 | 419 |
| 55 to 64 years | 12.9% | 14.0% | $12.09 | $18.48 | 404 | 401 |
| 65 years & over | 6.2% | 8.5% | $10.00 | $15.63 | 203 | 208 |
| Source: DEED Quarterly Employment Demographics | ||||||
Overall, the Retail Trade sector is a vital component of Southeast Minnesota's economy, offering numerous employment opportunities, with a notable increase during the holiday season. The industry welcomes those just entering the workforce and typically requires little or no prior job experience, making it appealing for those looking for employment within the region.
Contact Amanda O'Connell, Labor Market Analyst, at amanda.oconnell@state.mn.us.
