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Fewer Business Start-ups Reduced Fourth Quarter Economic Activity
<br /> After a brief surge of economic activity during the third quarter of 1995, the national
<br /> economy slipped back into slower growth during the fourth quarter. Consumer spending
<br /> decelerated, increasing less than one-half of the previous quarter's 2.8 percent growth rate; •
<br /> business spending slowed and inventory investment turned down sharply. Government
<br /> consumption and investment dropped more than the previous quarter, aggravated by two
<br /> federal government shutdowns late in the year. Although some regions grew during the
<br /> quarter, Minnesota's seasonally adjusted total employment experienced little growth.
<br /> Minnesota I
<br /> Quarterly New business formation in the state declined by 26 percent during fourth quarter 1995, which
<br /> Analysis caused the total number of start-up jobs to fall to the levels experienced in the soft landing of
<br /> early 1995. Fewer new hires by start-up manufacturing and wholesale trade businesses was the
<br /> 4th Quarter, 1995 primary factor in this slowdown. Within these sectors, new hirings slowed in food and kindred
<br /> products manufacturing, rubber and plastics, printing and publishing, and nondurable goods
<br /> wholesale businesses. The number of expansion jobs dropped sharply in food and kindred
<br /> products, transportation equipment and scientific instruments.
<br /> Quarterly Sources of Job Growth, (4th Quarter, 1995)
<br /> Number of Business Establishments*
<br /> Births Dissolutions Expansions** Contractions** Total
<br /> Industry No.Rate(°6) No.Rate(%) No.Rate(%) No.Rate(%) Estab:**
<br /> Agriculture D D 24 0.9 D D D D 2,917
<br /> Mining D D 4 2.1 D D D D 197
<br /> Construction 195 1.6 231 1.9 127 1.0 113 0.9 12,831
<br /> Manufacturing 134 1.6 86 1.0 120 1.4 73 0.9 8,781
<br /> Trans., Comm., Utilities 132 2.2 110 1.9 55 0.9 34 0.6 6,127
<br /> Wholesale Trade 304 2.2 207 1.5 44 0.3 35 0.2 14,724
<br /> Retail Trade 531 2.0 405 1.5 200 0.7 211 0.8 28,030
<br /> Finance, Ins., Real Estate 244 1.9 183 1.4 44 0.3 27 0.2 13,092
<br /> Services 1,099 2.4 798 1.8 298 0.7 214 0.5 47,261
<br /> Public Administration 7 0.3 4 0.2 11 0.5 10 0.5 2,556
<br /> TOTAL 4th Qtr., 1995 2,697 2.1 2,052 1.6 919 0.7 732 0.6 136,516
<br /> TOTAL 3rd Qtr., 1995 3,651 2.8 1,940 1.5 1,004 0.8 816 0.6 -
<br /> TOTAL 4th Qtr., 1994 3,036 2.3 2,565 1.9 927 0.7 756 0.6
<br /> Number of Jobs*
<br /> Births Dissolutions Expansions** Contractions** Total
<br /> Industry No.Rate(%) No.Rate(%) No.Rate(%) No.Rate(%) Jobs***
<br /> Agriculture D D 23 0.1 D D D D 19,840
<br /> Mining D D 1 0.0 D D D D 7,839
<br /> Construction 420 0.4 212 0.2 2,163 2.3 1,876 2.0 92,254
<br /> Manufacturing 450 0.1 550 0.1 2,812 0.7 1,834 0.4 421,238
<br /> Trans., Comm., Utilities 330 0.3 291 0.3 1,735 1.6 734 0.7 116,429
<br /> Wholesale Trade 587 0.4 411 0.3 924 0.6 1,031 0.7 151,531
<br /> Retail Trade 5,346 1.3 1,950 0.5 4,610 1.1 3,742 0.9 448,451
<br /> Finance, Ins., Real Estate 454 0.3 294 0.2 1,102 0.8 541 0.4 145,225
<br /> Services 3,110 0.4 2,303 0.3 7,279 1.0 5,072 0.7 808,238
<br /> Public Administration 8 0.0 1 0.0 268 0.5 172 0.3 68,066
<br /> TOTAL 4th Qtr., 1995 10,840 0.5 6,036 0.3 21,130 1.0 15,334 0.7 2,279,111
<br /> TOTAL 3rd Qtr., 1995 11,590 0.5 5,394 0.3 23,994 1.1 18,390 0.9 -
<br /> TOTAL 4th Qtr., 1994 13,451 0.6 5,612 0.3 22,437 1.1 16,261 0.8 -
<br /> * The rates in this table are based on totals from the previous quarter.
<br /> ** Covers only major expansions and contractions.
<br /> *** Total establishments and total jobs. 4th Quarter, /995. unuljusted for late or missing employer reports. •
<br /> D = Suppressed to avoid disclosure of individual comparry data.
<br /> Note. See notes on Page 13 of Report ji�r Terms, Definitions and Sources.
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