Why this is important
Having a job is a prerequisite to participating in the economy and sharing in its benefits. At the community level, a shortage of jobs increases unemployment, reduces tax revenues, and hinders economic growth. A diversity of industries promotes stability in the local/regional economy. Regions with a great breadth of industries are more stable during business cycle downturns and suffer fewer negative economic effects.
In 2010, Dakota County had the lowest employment concentration of any of the 87 counties in Minnesota. There were 16 industries in the county with 1% or more of total employment, which made Dakota County the most diverse industry base of any county.1 Economist experts believe diversity in the type of jobs in a specific area allows it to withstand the negative effects of a recession more easily than areas that are dependent only on a few types of jobs.
What the data show
The chart shows the total employment in all industries in Dakota County in the last decade.2 Employment steadily increased at an average annual rate of 2% (or approximately 3,309 jobs/year) between 2003 and 2007.9 Between 2007 and 2010, Dakota County lost approximate 7,500 jobs. Preliminary data show the number of employment in 2013 has increased to equal to the number of jobs before the economic recession in 2007. Between 2010 and 2013, Dakota County gained 7,763 jobs. Gaining jobs in the last three years indicates that Dakota County is on the right track in recovering its economy. For more information, see http://www.positivelyminnesota.com.
The second figure shows changes in the number of establishments in the top five industry categories in Dakota County.4 The number of establishments in these industry categories increased between 2000 and 2007, and declined after 2007, except for health care services, which saw an increase of 128 establishments during the time period between 2007 and 2013. Wholesale trade experienced a slight decrease of 13 establishments between 2000 and 2007 and continued to see a decline of 114 establishments between 2007 and 2013. Construction experienced the largest decrease (-246 establishments) between 2007 and 2013.
The third figure shows the employment trend of the top industry categories with the most establishments in 2013.5 The total jobs in construction, professional services, retail trade, and wholesale trade experienced a similar trend as the number of establishments, increasing between 2000 and 2007, and declining between 2007 and 2013. The number of jobs in the health care industry category increased by more than 31% (or 4,854 jobs) between 2007 and 2013.
The final figure shows average weekly wages6 for the top five industries with the most establishments in 2013.7 Four out of these five industries experienced an increased average weekly wage between 2007 and 2013, except for health care. Construction experienced the largest increase in the dollar amount (+$165) of the weekly wage between 2007 and 2013. The average weekly wages in the construction, professional services, and wholesale trade industries were higher than the average weekly wages of all industries ($918) in Dakota County in 2013.
Construction and professional services had fewer jobs compared to retail trade and health care in 2013. However, the average weekly wages in construction and professional services were much higher compared to retail trade and health care. In 2013, the average weekly wages in retail trade ($527) and health care ($687) were lower than the average weekly wage of all industries ($918).
1 Department of Employment and Economic Development, 2009 industry diversity chart.
2 Employment represents the number of covered workers who were employed during the pay period including the 12th of the month
3 2007 was used to examine the impact of the 2007 recession on jobs, establishments, and weekly wages.
4 An establishment is defined as the smallest operating business unit for which information can be provided on the cost of resources materials, labor, and capital employed to produce output. An establishment is generally a single physical location where business is conducted or where services or industrial operations are performed.
5 These industries are those with the most establishments in 2013, but not necessarily those with the most jobs. The top five industry categories with the most employment in 2013 were retail (21,958), health care (20,434), manufacturing (19,430), accommodation (14,220), and education services (13,061).
6 This means workers who are paid wages, salaries, bonuses, commissions, payment in kind, incentive payment, and tips. It does not include proprietors compensated in residual profits, the self-employed, those paid on a fee basis, farm or other real estate owners, or unpaid family workers.
7 These industries are those with the most establishments in 2013, but not necessarily those with the highest weekly wages in 2013. The top five industries with the highest average weekly wages in 2013 were utilities ($2,016), professional services ($1,484), Finance and Insurance ($1,559), information ($1,487), and mining ($1,441).