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<br /> Construction Industry Helped by Low Interest Rates
<br /> The onset of the building season, low mortgage rates and a favorable business outlook
<br /> stimulated new residential and commercial construction in the state during this quarter. The
<br /> state's construction industry had a 70 percent increase in the number of start-up businesses
<br /> and a doubling of start-up jobs. Job Rains through major expansions by construction
<br /> businesses continued to outpace job losses through business contractions. However,. the largest
<br /> source of new jobs in the state-the service industry-had 21 percent fewer business start-ups
<br /> Minnesota
<br /> and created 42 percent fewer start-up jobs. Business dissolutions and job terminations also
<br /> increased significantly among service businesses. Another large employer-the retail trade
<br /> Statewide industry-sustained its previous quarter's moderate growth rate.
<br /> Analysis
<br /> New job creation in the manufacturing sector slowed during this quarter. Although the
<br /> 2nd Quarter, 1995 industry continues to expand, the number of manufacturing start-ups and major expansions
<br /> dropped by more than 15 percent from the previous quarter. The number of manufacturing
<br /> dissolutions and job losses increased sharply. However, there were one-third fewer job losses
<br /> from major contractions as downsizing eased in the manufacturing sector.
<br /> Greater Minnesota Job Growth (page 13)
<br /> Number of Business Establishments*
<br /> Births Dissolutions Expansions** Contractions** Total
<br /> Industry No.Rate(%) No.Rate(%) No.Rate(%) No.Rate(%) Estab.***
<br /> Agriculture D D D D D D D D 2,738
<br /> Mining D D D D D D D D 194
<br /> Construction 455 3.6 359 2.9 121 1.0 113 0.9 12,197
<br /> Manufacturing 157 1.8 74 0.9 123 1.4 71 0.8 8,380
<br /> Trans., Comm., Utilities 174 2.9 160 2.7 50 0.8 21 0.4 5,852 •
<br /> Wholesale Trade 342 2.4 394 2.7 54 0.4 27 0.2 13,874
<br /> Retail Trade 547 2.0 571 2.1 181 0.7 176 0.6 26,947
<br /> Finance, Ins., Real Estate 220 1.7 169 1.3 22 0.2 32 0.3 12,538
<br /> Services 1,224 2.7 1,132 2.5 244 0.5 170 0.4 44,768
<br /> Public Administration 11 0.4 0 0.0 12 0.5 8 0.3 2,545
<br /> TOTAL 2nd Qtr. 1995 3,244 2.4 2,933 2.2 831 0.6 647 0.5 130,033
<br /> TOTAL 1st Qtr. 1995 3,644 2.7 2,194 1.6 764 0.6 687 0.5 -
<br /> TOTAL 2nd Qtr. 1994 3.012 2.3 2,719 2.1 981 0.7 753 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 D D D D D D 20,612
<br /> Mining D D D D D D D D 8,052
<br /> Construction 1,084 1.2 484 0.6 2,106 2.4 1,681 1.9 86,105
<br /> Manufacturing 356 0.1 424 0.1 3,376 0.8 2,170 0.5 415,800
<br /> Trans., Comm., Utilities 442 0.4 289 0.3 997 0.9 382 0.3 111,847
<br /> Wholesale Trade 590 0.4 351 0.3 1,072 0.8 656 0.5 143,100
<br /> Retail Trade 3,548 0.8 1,883 0.4 2,950 0.7 3,251 0.7 423,274
<br /> Finance, Ins., Real Estate 378 0.3 248 0.2 719 0.5 712 0.5 134,721
<br /> Services 2,647 0.4 2,067 0.3 4,871 0.6 2,941 0.4 765,973
<br /> Public Administration 6 0.0 0 0.0 260 0.4 130 0.2 68,630
<br /> TOTAL 2nd Qtr. 1995 9,340 0.4 5,901 0.3 16,945 0.8 12,439 0.6 2,178,114
<br /> TOTAL 1st Qtr. 1995 11,908 0.5 4,082 0.2 15,814 0.7 13,772 0.6
<br /> TOTAL 2nd Qtr. 1994 9,588 0.5 6,623 0.3 21,886 1.1 16,558 0.8
<br /> * The rat's in this table are haled on lorals 'rom previouv quarrerc.
<br /> ** Curers only major expansions and contractions.
<br /> ***
<br /> Total,%tablishments and totat jobs, 2nd Qaaiter. 1995, unadjnsred for lure or missing empinrer reports.
<br /> D = Suppressed to avoid disclosure of individual companc data.
<br /> Note: See notes on Page 13 of Repoa f,r Ternr.c, Definitions and Smoce.s
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