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Greater Minnesota Shared in Job Growth with Twin Cities Area Although Greater Minnesota accounts for less than 47 percent of Minnesota's business firms, 60 percent of new construction companies were formed in Greater Minnesota during this quarter, and these start-ups contributed nearly two of every three start-up construction jobs in the state. On the other hand, most expanding construction companies were located in the Twin Cities area, and they contributed nearly three of every four expansion jobs in this industry. In addition, most of the new and expansion jobs in the services; finance, insurance and real estate; and trade industries were created in the Twin Cities area. Manufacturing growth was more evenly split between the Twin Cities area and Greater Definitions Minnesota. Food and kindred products, wood products and other resource-based manufacturers and Sources.,' were more active in Greater Minnesota while printing and publishing. fabricated metals, industrial machinery and computers, and scientific instrument manufacturers expanded 2nd Quarter, 1995 significantly in the Twin Cities area. Terms and Definitions The following are definitions of some fmdamental terms used in this report: Business Establishment: As defined by the U.S. Department of Commerce, a separate plant location or work-site of a company or enterprise. Large companies may have several establishments in various locations around Minnesota. Dissolution: The death of a Minnesota business establishment is assumed to have occurred when that establishment both did not report to the Minnesota Unemployment Insurance Program (U-1) for two consecutive quarters, and when the establishment cannot be found elsewhere in the U-1 records. Businesses which were sold or merged with other establishments, when such sale or merger resulted in a name and identification number change, may occasionally be erroneously reported as dissolutions. Apparent dissolutions of manufacturing companies are further verified by business termination data from the Department of Economic Security(DES),and through follow-up surveys administered by DTED. Birth: The start-up of a new company is determined to have occurred when the establishment first reports to the U-1 Program. Sales or mergers of companies nary•occasionally be erroneously reported as births, when such activity resulted in a company name change. For mamfacturing companies, DES's records and various industry sources are used to identify such business sales and mergers, which are then e.xclu led from this category. Expansion: The DTED Business Tracking System reports only significant business expansions. A significant expansion occurs when a business establishment with over 19 employees increases employment by 25 percent or more over two quarters; or when any establishment adds SO or more employees over tsro quarters. For seasonal businesses such as outdoor recreation and tourism,job growth is calculated from the same quarter of the previous rear. Contraction: The DTED Business Tracking System reports only significant business contractions. .4 significant contraction occurs when a business establishment with over 19 employees decreases employment by 25 percent or more over two quarters; or when a:v establishment terminates SO or more employees over two quarters. For seasonal businesses. job decline is calculated from the same quarter of the previous year. Sources For This Report The DTED Business Tracking Svstem is bared on information and data files provided by the Research Division and Tax Division of the Minnesota Department of Economic Security, including quarterly employer reports to the Unemployment insurance Program (ES202). St. Paul, Minnesota. The data covers approximately 97 percent of all nonagricultural wage and salary employment in Minnesota Those excluded from ES_'02 are the self=employed, railroad workers, most farmers, commission agents, students, religious workers and elected government officials. Six months after the close of each quarter, DES provides DTED with raw data on employment and wages by business establishment for that quarter. This report is produced one to two months after DTED receives these data. Hence, the DTED Quarterly Report is issued approximately 8 maths after the close of quarter covered. 13