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Economic Expansion Resumes in Summer 1995 <br /> A soft landing during the Spring of 1995 and sustained low inflation rates led to a surge in economic <br /> activity nationwide during the succeeding summer. Strengthened consumer demand and low business <br /> • inventories caused U.S. industries to produce 3.6 percent more goods and services during the summer <br /> of 1995. Minnesota's manufacturing sector added 10,600 new jobs from the previous quarter. <br /> According to the Department of Economic Security, Minnesota continued to add jobs at a faster rate <br /> than nationally. There were 67,000 more jobs in Minnesota during summer 1995 compared to summer <br /> 1994, a 2.9 percent increase. This exceeded the national rate of 2.6 percent for the same period, and the <br /> 2.4 percent growth rate for the state the previous spring. Consequently, Minnesota's seasonally adjusted . <br /> unemployment rate fell to 3.0 percent by September 1995, nearly half the national rate of 5.6 percent. <br /> Major business expansions in Minnesota added 42 percent more jobs than the previous quarter. Several <br /> food manufacturers expanded operations beyond their high seasonal levels of the previous summer. 3rd Quarter, 1995 <br /> Technolog -intensive companies producing computers and industrial machineries, electronic components, <br /> transportation equipment, and instruments and related products greatly increased their expansion hirings. <br /> Business services and health services more than doubled their expansion hirings from the previous quarter. <br /> New business formation picked up during the summer of 1995. Compared to the previous <br /> quarter, 13 percent more new businesses started up, creating 24 percent more start-up jobs. <br /> Several large food manufacturers opened new plants, and manufacturers in several industries, <br /> including rubber and plastic products, printing and publishing, and industrial machinery <br /> continued to be significant contributors to start-up jobs. The number of business dissolutions <br /> declined by one-third, with business services, health services, and engineering, accounting, <br /> legal and other professional services posting fewer business closings and job losses. <br /> July 1994 <br /> 2400 Jan.1996 <br /> 2390 <br /> 2380 <br /> • Wage and 230 <br /> Salary 23660 <br /> Employment,2350 <br /> Seasonally 2340 <br /> Adjusted <br /> (1,000) 2330 <br /> 2320 <br /> 2310 <br /> 2300 <br /> 4°'. <br /> —----- 2.a <br /> 2.a 2-7 3% Business <br /> 2 a Birth <br /> 2.3 `ds 2:: and <br /> __1A 1.9 _ >ys' - -_ - *"'r: --- � ' Dissoluticn <br /> 2% Rates <br /> 1.6 <br /> 5 <br /> e Berth Rase <br /> I— 1% ❑ Dssolubc�Rate <br /> 3rd Quarter,1994 4th Quarter,1994 1 st Quarter,1995 2nd Quarter,1995 3rd Quarter,1995 <br /> Large Manufacturing Companies Built New Plants and <br /> Enlarged Facilities <br /> Manufacturing companies with 50 or more employees accounted for two of every three start-up jobs <br /> and almost all major expansion jobs in manufacturing. Most of these start-ups occurred in the Twin <br /> Cities area, while major manufacturing expansions were split evenly between the Twin Cities area and <br /> Greater Minnesota. Large companies in other industries were also major sources of expansion jobs. <br /> Across all industries, small companies with fewer than 50 employees exhibited characteristic <br /> volatility; they accounted for 65 percent of start-up jobs, 71 percent of terminated jobs and <br /> • 50 percent of downsized jobs. Small business contractions were prevalent in the construction. <br /> retail trade and service industries. <br /> 1 <br />