INFORMATION #2 EDSR 08-14-2006 - Laserfiche WebLink

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The Minnesota Labor Market Index rebounded sharply in April, increasing 0.9 percent to 136.4. April's advance was fuelled by a jump in adjusted wage and salary employment and a drop in adjusted initial unemployment claims. Adjusted average weekly manufacturing hours, the third component of the index, was unchanged in April. The U.S. index improved for the seventh consecutive month, climbing to 136.0. Minnesota's index in April was 2.9 percent higher than a year ago. The U.S.index was up 3.7 percent over the 12-month period. Seasonally adjusted Wage and Salary Employment recorded robust growth in April for the third consecutive year. April's job growth of 14,900 jobs was spread across six sectors with the largest employment expansion occurring in the professional and business services and the leisure and hospitality sectors. Minimal job loss was reported in the information, financial activities, and natural resources and mining sectors. The state's unadjusted over-the-year job growth rate for the first four months of 2006 has averaged 1.6 percent which is slightly above the projected long-term rate of 1.5 percent. 1so 1as 1ao 135 130 12s 12of- ,992=100 115' Apr Apr Apr Apr Apr 01 02 03 04 OS Help-Wanted Ads increased for the second straight month in April, rising above 9,000 for the first time in six months. April's 6.5 percent hike to 9,045 is consistent with a job market that appears to be steadily improving. Newspaper help- wanted ads remain well below levels UV 14s 140 135 130 125 lzo ns Apr of Apr Apr Apr Apr Apr 02 03 04 OS 06 2005 Apr 132.6 May 131.5 tun 731.6 lul 133.1 Aug 131.9 Sep 732.2 Oct 734.8 Nov 134.0 Dec 134.9 2006 Ian 735.4 Feb 735.8 Mar 135.2 Apr 136.4 %Chg From Month Ago 0.9% Year Ago 2.9% Source: Department o(Employment and Economic Development, 2006. seen prior to the 2001 recession and before ` employers turned to the Internet to advertise job openings. Minnesota's Purchasing Managers' Index (PMI) surged to 68.7 in Aprfl spiking to its second- highestlevel ever recorded over the index's 12-year history. The index's five-month escalation is consistent with the stronger job growth seen since January. The ongoing run up in the index suggests that hiring will continue to pick up through The summer. Minnesota's job market, after lagging behind the national job picture in 2004 and 2005, is on track to match or slightly exceed the nation in 2006. Weekly Manufacturing Hours were flat i n April, coming in at March's level of 41.2. Factory hours have averaged 40.4 hours per week since 1970, so April's 41.2 hour workweek is a bullish sign for [he state's economy. zoos Apr May 131.1 130.9 Factory paychecks, Ji~l isi:° however, fell in Aug sep 732.6 130.] April for the third r°o`~ i3i8 month out of [he zoob ~a~ iisz last four. April's 1.8 Feb Mar 135.3 135.] peCCERt decllnE SERI Apr 136.0 Manufacturing %Chg From Month Ago 0.3% EalTlingS dRWn t0 r Vear Ago 3.7% $696.69. Factory Source: Department of Employment and Economic Development, 2006. paychecks continue to be up in real terms over last year with April's paycheck being 2.0 percent higher than a year ago. Adjusted Minnesota Business Incorporations turned around in April climbing to 1,014. April's 7.9 percent bump in incorporations left April's business startup volume 4.9 percent below a year ago. Residential Building Permits plunged in April to 2,239. The drop in home building permits was expected, following a drop in new home sales and a growing inventory of homes for sale. April's permit level was the lowest since March 1998 and down 34.1 percent from last April. The expected home building slowdown has arrived in Minnesota despite an improving job market as higher mortgage rates seem to be putting a damper on the demand for new homes. The seasonally adjusted Initial Claims for Unemployment Benefits (UB) situation improved in Minnesota in April as initial claims decreased 2.0 percent to 5,218. April's initial claims level was 6.4 percent below last April's numbers. The year-over-year drop is another indicator that the job market has gained momentum in 2006. by Dave Senf Note: Except for the Minnesota Labor MarketIndex,the US. Labor Market Index,and the PMl,allover-the-year data are seasonally unadjusted.The most recent data available are for Apr 2006. See the Supplement Irom the Minnesota Employment Review, June 1999, for more information on the Minnesota Labor Market Index and the LLS. Labor Market Index. ~ 4 Minnesota Employment Review June 2006