By Nick Dobbins
January 2021
Monthly analysis is based on seasonally adjusted employment data.
Yearly analysis is based on unadjusted employment data.
Employment in Minnesota was down 1.8% (49,800 jobs) in December. The declines came among service providers (down 51,900 jobs or 2.2%) as increased COVID19 precautions were implemented. Goods producers added 2,100 jobs (0.5%) over the month.
Over the year employment in the state was down 238,056 job, or 8%. This was worse than November's 6.5% over-the-year decline. Service providers lost 222,087 jobs (8.8%), and goods producers lost 15,969 (3.6%), with all three goods-producing supersectors showing improvement over November's over-the-year growth. Private sector employers shed 201,904 jobs or 7.9% over the year, while public sector employers lost 36,152 jobs or 8.4%.
Employment in Mining and Logging was flat in December, holding at 5,700 jobs where it has been since October.
Employment in the supersector was off by 11.4% (694 jobs) over the year. This was an improvement over November, when the supersector's employment was down 14%.
Employers in the Construction supersector added 800 jobs (0.7%) over the month after losing 2,700 jobs in November.
Over the year Construction employers shed 4,694 jobs (3.9%), with losses in all three major component sectors. This was an improvement over November's 4.3% over-the-year decline.
Manufacturing employers added 1,300 jobs (0.4%) in December, with seasonally adjusted growth in both component sectors. Non-Durable Goods Manufacturing added 1,000 jobs (0.9%) while Durable Goods Manufacturing added 300 (0.2%).
On an annual basis the supersector lost 10,581 jobs or 3.3%, with most of that decline coming in Durable Goods (down 10,499 or 5.2%). This was an improvement over November's 4.1% decline and the fifth consecutive month with over-the-year employment improvement for the supersector.
Trade, Transportation, and Utilities employers added 1,300 jobs (0.2%) in December. Retail Trade added 2,600 jobs (0.9%) while Wholesale Trade lost 1,300 (0.2%) and Transportation, Warehousing, and Utilities employment held steady at 106,500 jobs.
Over the year the supersector lost 9,140 jobs (1.7%). All three component sectors lost jobs on the year, with Wholesale Trade down 5,729 (4.5%), Retail Trade down 505 (0.2%), and Transportation, Warehousing, and Utilities down 2,906 (2.6%).
Employers in Information lost 900 jobs (2.3%) over the month in December. It was the third consecutive month of seasonally adjusted declines for the supersector.
On an annual basis Information employers lost 7,301 jobs or 15.9%. It was the second-largest proportional decline of any supersector in the state after Leisure and Hospitality.
Employment in Financial Activities was up 500 (0.3%) in December, with growth in both components. Finance and Insurance added 300 jobs (0.2%) and Real Estate and Rental and Leasing added 200 jobs (0.6%).
Over the year the supersector lost 1,643 jobs (0.9%). The decline came entirely from Real Estate and Rental and Leasing which shed 2,513 jobs (7.3%). Finance and Insurance added 870 jobs (0.6%), making it one of the few major component sectors to post positive over-the-year growth.
Professional and Business Services added 1,200 jobs (0.3%) in December, with all three component sectors posting flat or positive growth. Management of Companies and Enterprises added 700 jobs (0.8%), and Administrative and Support Services added 500 (0.4%) while Professional, Scientific and Technical Services employment remained flat.
Over the year the supersector lost 5,098 jobs (1.3%). Professional, Scientific, and Technical Services lost 3,319 jobs (2.1%), Management of Companies lost 1,093 (1.2%), and Administrative and Support Services lost 686 jobs (0.5%), although its largest component, Employment Services, added 543 jobs (0.9%).
Educational and Health Services employers lost 2,600 jobs (0.5%) in December. Declines in Educational Services (down 3,900 jobs or 5.9%) dragged down the supersector's employment, likely from schools in the state reacting to increases in COVID19 cases. Health Care and Social Assistance added 1,300 jobs (0.3%).
Over the year the supersector lost 30,825 jobs (5.6%). This marked a slight deterioration of the situation from November's 5.4% decline, and this was the first month that the over-the-year employment situation worsened in the supersector since April. Educational Services lost 11,048 jobs (15%) while Health Care and Social Assistance lost 19,777 jobs (4.1%).
Leisure and Hospitality employment was down 41,100 jobs (20.7%) in December. The steep decline was likely owing in large part to increased COVID19 cases, and the tightened restrictions placed on many businesses in this supersector in late November to combat that increase.
Over the year employment in the supersector was down by 116,429 or 43.7%, a marked deterioration from November's 28.6% over-the-year decline. Arts, Entertainment, and Recreation was down 26,443 jobs (59.7%), and Accommodation and Food Services was down 89,986 (40.5%).
Employment in Other Services was down 3,400 (3.5%) in December on a seasonally adjusted basis. It was the second consecutive month of declines for the supersector.
On the year Other Services lost 15,499 jobs or 13.5%. While all three component sectors posted negative growth, Personal and Laundry Services drove the supersector's decline, losing 9,539 jobs or 32.5%.
Government employers lost 6,900 jobs (1.7%) in December, with losses at the Local (down 6,200 or 2.3%) and State (700 or 0.7%) levels. Federal employment was flat at 32,700.
Over the year Government employment was down 36,152, or 8.4%. This was worse than November's 7% over-the-year decline. Losses at the Local Government level drove the decline, down 9.8% over the year versus a 7.7% decline in November.
