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Fewer Expansion Jobs In Retail Trade and Services Slowed <br /> Net Job Growth <br /> r�Y� The moderating job growth evident in the Department of Economic Security's (DES) <br /> seasonally adjusted employment data during this period was caused by a sharp drop in the <br /> number of expansion jobs. Although job losses from business dissolutions and contractions did • <br /> � P j g j <br /> not worsen during this slow period, business expansions produced 20,000 fewer new jobs. In <br /> contrast, during the previous 1993-94 period, aggressive business expansions fueled strong net <br /> job growth. Expansion jobs dropped by more than 10 percent among industries where small <br /> Minnesota businesses proliferate, such as retail trade, services, trucking and warehousing, security <br /> Annual brokers, and real estate agents. Manufacturing, construction and wholesale trade sectors <br /> Analysis showed smaller drops in expansion jobs. <br /> 3rd Quarter, 1994 The number of start-up jobs and terminations actually improved from the previous quarter, but <br /> through they involved far fewer jobs relative to business expansions and contractions. Job retention <br /> 3rd Quarter, 1995 and expansion among small- and medium-sized businesses continue to heavily influence job <br /> growth in the state, compared to the attracting of new business. <br /> Comparison of Job Gains and Losses, <br /> (3rd Quarter 1993-94 and 3rd Quarter 1994-95) <br /> 250,000 <br /> 200,000 194,000 <br /> 000 <br /> , <br /> 150 ---- <br /> c i <br /> V100,000 3rd Quarter <br /> 50,000 44,500 49,100 1993-94 <br /> E 0 �:] 1994-95 <br /> rd Quarter <br /> a <br /> -50,000 <br /> CL <br /> E-100,000 32,200 -30,000 - <br /> -150,000 124,900 -125,000 <br /> -200,000 <br /> Business Business Business Business <br /> Births Expansions Dissolutions Contractions <br /> Manufacturing Continued to Add Jobs <br /> The BTS identified more than 12,000 net new manufacturing jobs between third quarter 1994, <br /> and third quarter 1995, with most of the new jobs coming from business expansions. Business <br /> start-ups created less than 10 percent of the new manufacturing jobs. Durable goods <br /> manufacturing showed rapid job growth, particularly among industrial machinery and <br /> equipment (except computers), fabricated metals, scientific and medical instruments, and <br /> electronic components. These industries have high technology content and low (traditional) <br /> natural resource content. Among nondurable goods manufacturing, printing and publishing, <br /> food and kindred products, and rubber and plastic manufacturing led in the number of <br /> expansion jobs. <br /> Job expansion among manufacturing industries has flourished since the 1992-93 economic <br /> recovery, highlighted by the sharp increase in expansion jobs among nondurable goods <br /> manufacturing during 1993-94, and the current strong showing by high technology-durable <br /> goods manufacturing. Most new jobs came from expansions by existing businesses rather than <br /> start-ups, even for high technology manufacturing such as scientific instruments and medical <br /> products, industrial machinery (except computers) and electronic components. • <br /> 2 <br />