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

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Monthly analysis isbased onseasonal/yadjustademployment data;yearlyanalysis isbased on uswdjusredemploymentctata. f ~ rpi : ~1ir~ ~~ Employment grew only 400 on a seasonally adjusted basis as May increases were average and unremarkable overall. That said, there were a number of areas of particular strength or weakness. Strong growth occurred in Professional and Business Services for the third consecufive month with sizeable gains also in Trade, Transportation, and Utilities and in Education and Health Selvices. A large part of the sizeable April gains in Leisure and Hospitality were given back in May as that supersector fell by 2,900. Construction fell by 2,400 due to smaller-than-usual seasonal buildups. As expected the over-the-year rate of growth moved back up to 1.7 percent after falling to 1.1 percent in Aprit. This reflects the unusual employment pattern in the second quarter of 2005, not developments in 2006. After three strong months, Professional and Business Services now posts the fastest rate of 12-month growth as well as the largest number of new jobs added. ' N~tuxaiResoircesandMining(NRM) Employment did not change in Natural Resources and Mining on a seasonally adjusted basis. The estimates show a small gain of 100 over the year. All of this gain occurred in non-metal mining industries. ;t„si'f;!;;truc~an Seasonally adjusted data show a decline of 2,400 in Construction employment for May, erasing a large part of the 3,600 job increase that occurred February through April. The monthly loss was mainly caused by slowerthan-usual seasonal increases in heavy and civil engineering construction and specialty trade contractors. The unadjusted rate of growth for April to May was substantially below average growth in previous years. Despite the poor montlily results, the annual rate of growth remained positive at 0.5 percent. This gain is almost entirely because of gains in heavy and civil engineering construction this spring. ~~ _ _ __ 4.0 v 3.0 m ,~ _ v ` z.o ~^ L ~~ ~ 1.0 ;" Z o~ v 0o as ~ m -< a ~ ~d ~~ v ~.- z.o ~~~ ~ w _~ o LL< ~ w^-'moo v s ~ ~ r. ~ ~~ v'$ x 'o s.o g _ og WA_ ~, ~ F a„ _ Not seasonally adjusted. Source: CunentEmployment Statistics, m Department of Employment and Economic Developmenq 2006. ~~~ ~ ~}~,lY'.F ~.~.,:< err.. Manufacturing saw a small gain of 600 jobs in May. There was effectively little or no change in durable- goods manufacturing where only machinery manufacturing showed decent results for the month. What growth occurred in the supersector came mainly from nondurable-goods manufacturing where modest improvements were common excluding food manufacturing. Over the past 12 months, jobs increased by about 900 in the supersector. Most of this gain came from nondurable-goods manufacturing with durable goods adding fewer than 100 jobs. This is a bit of a change from 2004 and 2005 when nearly al] employment growth in Manufacturing came from durable-goods manufacturing. The gains in durable- goods manufacturing have slowed in 2006 to only minuscule over-the-year growth. ~~rrTtzuas~ortation, and tltillties (TTU) TTU employment increased by 1,800 in May. This followed a small gain in April. The estimates show that wholesale and retail trade experienced moderate improvement in May, but transportation and warehousing losses provided a substantial counterbalance to this growth. National sales reports for retail trade showed solid growth for March and April leading to an expectation of decent growth in retail employment. While April retail employment was off a bit, the estimated employment level bounced back smartly in May. Over-the-year growth tells a similar story. The supersector added 3,700 jobs over the last 12 months, equal to 0.7 percent growth. The majority of the new jobs came in retail, where 2,600 jobs were added, followed very closely by the addition of 2,300 jobs in wholesale trade. Transportation and warehousing counterbalanced agood deal of this growth with a loss of 1,100, despite gains in truck transportation. `'' (;~{aCl1'lati0fl May was generally a solid month of job growth in Information. The supersector posted a gain of 700 for the month and now has a run of four months without registering a loss, a feat not duplicated since before the 2001 recession. The only estimated industry [hat showed weakness was newspaper, periodical, book, and directory publishers. Over-the-year growth now measures 3.3 percent, equal to 2,000 jobs. These job gains have come from industries outside telecommunications. September of 2005 and the last three months have been the only months with over-the- year gains since June 2001. Hopefully, the three-month trend marks the beginning of a period of consistent gains for the supersector. 'Over-the-year data are not seasonally adjusted because of small changes in seasonal adjustment factors from year to year. Also, there is no seasonality in over-the-year changes. $ Minnesota Employment Review June 2006