Community News
New Survey Highlights Optimism for Minnesota Businesses
CNBC recently ranked Minnesota the 6th best state for business in the country. Education and Health Services: Employment in Education and Health Services was up 4,300, or 0.7%, OTM in July. It was the largest real job growth of any supersector in the state. Educational Services added 700 jobs (0.9%) and Health Care and Social Assistance added 3,600 jobs (0.7%). The supersector has added jobs in 21 consecutive months dating back to November of 2022. Over the year, Education and Health Services added 38,926 jobs, or 7%. It was the largest real and proportional growth of any supersector in Minnesota. Education and Health Services was up 6,709 (11%) and Health Care and Social Assistance added 32,217 jobs, or 6.5%. Every published component of the supersector added jobs on the year. Leisure and Hospitality: Leisure and Hospitality employers lost 2,000 jobs (0.7%) OTM in July. It was the second consecutive month of job losses following three months of employment growth. Arts, Entertainment and Recreation added 100 jobs (0.2%), while Accommodation and Food Services lost 2,100 jobs (0.9%). Over the year, Leisure and Hospitality employers added 2,624 jobs (0.9%). The supersector has posted positive annual growth consistently since April of 2021. Accommodation and Food Services added 3,322 jobs (1.4%), while Arts, Entertainment and Recreation lost 698 jobs (1.3%). Other Services : Employment in Other Services was up 1,100 (1%) OTM in July. It was the first monthly growth for the supersector since February, though seasonally adjusted employment is up overall in 2024. Over the year, Other Services employers added 2,458 jobs, or 2.1%, outpacing the national growth of 1.4%. Religious, Grantmaking, Civic and Professional Organizations added 1,470 jobs (2.3%) and Personal and Laundry Services added 810 jobs (2.9%). "This survey partnership with DEED provides us with on-the-ground intelligence about the business conditions and expectations for inflation and hiring that is key to our understanding of the national economy," said Joe Mahon, Regional Outreach Director for the Federal Reserve Bank of Minneapolis. The Business Services Industry Conditions Survey gauges the sentiments of Minnesota business services firms concerning their own operations, as well as the state economy as a whole. Accounting firms, computer consultants, advertising and public relations agencies and other types of service companies support the activities of other businesses, and their performance is an indicator of overall business conditions and trends across industries and throughout the state. This year's survey included responses from 141 businesses. Government : Government employment was off by 500 (0.1%) OTM in July. Federal and State level employers each added 100 jobs (up 0.3% and 0.1%, respectively) while Local Government employers lost 700 jobs (0.2%) on the month. Over the year, Government employers added 19,647 jobs, or 4.9%, outpacing the national growth of 2.4%. Every level of Government added jobs on the year. Federal employers were up 693 (2.1%), State was up 4,220 (4.5%) and Local Government was up 14,734 (5.4%). The non-education sectors at both the State and Local levels outperformed their education employment counterparts. Over-the-Year Job Growth by MSAs July data released by DEED, not seasonally adjusted Metropolitan Statistical Area OTY Employment Change (#, NSA) OTY Employment Change (%, NSA)
Minnesota business services firms expect improved profits, productivity and job growth over the next 12 months, according to a survey conducted by the Minnesota Department of Employment and Economic Development (DEED) and the Federal Reserve Bank of Minneapolis. More than half of respondents expect sales revenue, profits, productivity and employment to increase or stay the same in Minnesota over the next year, according to the survey. Two-thirds of firms expect labor availability to stay about the same, while nearly 65% anticipate raising wages by at least 3% to attract workers during Minnesota's labor shortage. On inflation, 56% of respondents expect it to rise over the next year, but that figure is down from 65% in last year's survey, reflecting cautious optimism about slowing price increases. "Businesses are optimistic about Minnesota's economic outlook. Our employers have added jobs eight of the last 12 months and dozens of businesses have announced expansions in our state, including major companies like Meta, Polar Semiconductor and Solugen," said DEED Commissioner Matt Varilek. "We're working hard to address businesses' concerns about our economy, especially the labor shortage, as we aim to keep Minnesota among the top states for business."
OVER-THE-YEAR JOB GROWTH BY MSA S (JULY DATA RELEASED BY DEED, NOT SEASONALLY ADJUSTED) A July 2024 Employment Analysis published by DEED showed Rochester Metropolitan Statistical Area (MSA) to be leading in over-the-year job growth.
Minneapolis-St. Paul MN-WI MSA Duluth-Superior MN-WI MSA
2,126 -1,253 5,868 1,600 1,124
0.1 -0.9
Rochester MSA St. Cloud MSA Mankato MSA
4.7 1.5
2
Fargo-Moorhead ND-MN MSA (June) Grand Forks-East Grand Forks ND- MN MSA (June) La Crosse-Onalaska WI-MN (June)
3,300
2.2
900
1.7 2.3
1,800
5
OCTOBER 2024 — ROCHESTER AREA CHAMBER OF COMMERCE ADVANTAGE MAGAZINE | 41
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