Primary navigation

    Industry Snapshots

    by Cameron Macht
    March 2019

    Administration of Human Resource Programs (NAICS 923)

    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.

    Figure 1. Minnesota Industry Employment Statistics, 2000-2018

    1923130 Administration of Human Resources Programs (except Education, Public Health, and Veterans' Affairs Programs).

    2923120 Administration of Public Health Programs.

    3923140 Administration of Veterans' Affairs.

    4923110 Administration of Education Programs.

    Administrative and Support Services (NAICS 561)

    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

    1561 Administrative and Support Services.

    Air Transportation (NAICS 481)

    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).

    Figure 1. Minnesota Industry Employment Statistics, 2000-2018

    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.

    2Calendar Year 2017 Enplanements at All Commercial Service Airports (by Rank), Updated November 7, 2018.

    3Baxter, Annie and Mark Zdechlik. "Northwest files for bankruptcy." Minnesota Public Radio.

    4Painter, Kristen Leigh. "Northwest and Delta 10 years on: lots of profit, lots of flights at MSP." StarTribune. October 30, 2018.

    5481 Air Transportation.

    Ambulatory Health Care Services(NAICS 621)

    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
    back to top