minneapolis-st. paul employment update | december 2016

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Total jobs vs. unemployment rate: MSP Source: JLL Research, Bureau of Labor Statistics Job growth/loss by sector (12-month change): MSP Source: JLL Research, Bureau of Labor Statistics Industrial employment trends (12-month change): MSP Source: JLL Research, Bureau of Labor Statistics Minneapolis-St. Paul has the fourth-lowest unemployment rate in the nation among all large metros, according to the most recent BLS estimates. Once again, MSP achieved record-breaking employment totals for professional and business services, a fundamental component to the metro’s economic growth. A net total of 8,800 jobs have been added in the industry year-over-year (Y-O-Y). While office-using sectors were responsible for 52% of growth this month, educational and health services continue to drive regional employment gains and currently account for 37% of Y-O-Y job growth. Nationwide, unemployment dropped by 30bp to a cyclical low of 4.6 percent. This is possible by consistent job growth and a slight decline in the labor force participation rate to 62.7 percent. With continued wage growth and inflation now at 1.6 percent, nearing the Federal Reserve’s 2.0-percent target and unemployment at its lowest point since August 2007, the stage has been set for a rate hike by the end of the year. Employment Update Minneapolis-St. Paul | December 2016 4.6% U.S. unemployment 1.6% U.S. 12-month job growth 3.1% MSP unemployment 1.4% MSP 12-month job growth 4.0% Minnesota unemployment 1.1% Minnesota 12-month job growth Office employment trends (12-month change): MSP Source: JLL Research, Bureau of Labor Statistics Peak: 1,908,991 jobs 1,550,000 1,650,000 1,750,000 1,850,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Total Emp... Leisure & Hospitality Information Mining and Logging Other Services Professional & Business Services -1,000 -500 -300 500 1,400 2,500 2,500 2,900 8,800 9,700 2011 2012 2013 2014 2015 2016 -20.0 -10.0 0.0 10.0 20.0 30.0 Financial Activities In thousands 2011 2012 2013 2014 2015 2016 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 Mining, Logging & Construction

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Page 1: Minneapolis-St. Paul employment update | December 2016

Total jobs vs. unemployment rate: MSP

Source: JLL Research, Bureau of Labor Statistics

Job growth/loss by sector (12-month change): MSP

Source: JLL Research, Bureau of Labor Statistics

Industrial employment trends (12-month change): MSP

Source: JLL Research, Bureau of Labor Statistics

• Minneapolis-St. Paul has the fourth-lowest unemployment rate in the nation among all large metros, according to the most recent BLS estimates.

• Once again, MSP achieved record-breaking employment totals for professional and business services, a fundamental component to the metro’s economic growth. A net total of 8,800 jobs have been added in the industry year-over-year (Y-O-Y).

• While office-using sectors were responsible for 52% of growth this month, educational and health services continue to drive regional employment gains and currently account for 37% of Y-O-Y job growth.

• Nationwide, unemployment dropped by 30bp to a cyclical low of 4.6 percent. This is possible by consistent job growth and a slight decline in the labor force participation rate to 62.7 percent.

• With continued wage growth and inflation now at 1.6 percent, nearing the Federal Reserve’s 2.0-percent target and unemployment at its lowest point since August 2007, the stage has been set for a rate hike by the end of the year.

Employment Update

Minneapolis-St. Paul | December 2016

4.6%U.S. unemployment

1.6%U.S. 12-month job growth

3.1% MSP unemployment

1.4%MSP 12-month job growth

4.0%Minnesota unemployment

1.1%Minnesota 12-month job growth

Office employment trends (12-month change): MSP

Source: JLL Research, Bureau of Labor Statistics

Peak: 1,908,991 jobs

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20161,550,000

1,600,000

1,650,000

1,700,000

1,750,000

1,800,000

1,850,000

1,900,000

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

Total EmploymentUnemployment

Leisure & Hospitality Manufacturing

Information Trade, Transportation & Utilities

Mining and Logging Government

Other Services Financial Activities

Professional & Business Services Educational & Health Services

-1,000-500-300

5001,400

2,5002,5002,900

8,8009,700

2011 2012 2013 2014 2015 2016-20.0-15.0-10.0

-5.00.05.0

10.015.020.025.0

Financial ActivitiesProfessional and Business ServicesInformationGovernment

In thousands

2011 2012 2013 2014 2015 2016-5.0

0.0

5.0

10.0

15.0

20.0

25.0Mining, Logging & ConstructionTrade, Transportation & UtilitiesManufacturingOther Services

Page 2: Minneapolis-St. Paul employment update | December 2016

Industry employment stratificationMinneapolis-St. Paul

Source: JLL Research, Bureau of Labor Statistics

©2016 Jones Lang LaSalle IP, Inc. All rights reserved.

Employment statisticsMinneapolis-St. Paul

October 2014 October 2015 October 2016

Total Non-farm Employment

1,920,6001.5%

1,955,7001.8%

1,982,2001.4%

Unemployment Rate 3.1% 2.9% 3.1%

MSP supersectors October 2014 October 2015 October 2016

Mining, Logging & Construction 79,000 7.9% 82,300 4.2% 83,700 1.7%

Manufacturing 192,500 2.8% 194,60

0 1.1% 194,100 -0.3%

Trade, Transportation, & Utilities

345,200 1.4% 350,20

0 1.4% 350,700 0.1%

Information 39,400 -1.3% 39,200 -0.5% 38,900 -0.8%

Financial Activities 144,400 -0.6% 147,50

0 2.1% 150,400 2.0%

Professional & Business Services

304,300 1.6% 308,20

0 1.3% 317,000 2.9%

Educational & Health Services 311,200 2.2% 320,60

0 3.0% 330,300 3.0%

Leisure & Hospitality 174,000 0.6% 179,20

0 3.0% 178,200 -0.6%

Other Services 79,600 1.5% 80,700 1.4% 83,200 3.1%

Government 252,800 0.6% 253,20

0 0.2% 255,700 1.0%

For more information, please contact:

Tyler Hegwood │ [email protected]

18%

17%

16%13%

10%

9%

8%

4%4%2%

Professional and Business Services Financial Activities

Leisure and Hospitality Information

Educational and Health Services Mining, Logging and construction

Manufacturing Trade, transportation and Utilities

Other Services Government