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 and regional economy. Regions with a great breadth of industries are more stable during business cycle downturns and suffer fewer negative economic effects compared to those that depend on only a few types of jobs.
In 2013, Dakota County was named in the top 10 list of communities that are ideally positioned to attract modern investment and managed economy growth. The ranking was based on these five areas: investment, talent, sustainability, place and diversity. These five areas serve as a foundation for future economic success.1
What the data show
The chart shows the total number of jobs in all industries in Dakota County in the last decade.2 The number of jobs steadily increased at an average annual rate of 2% (or approximately 3,309 jobs/year) between 2003 and 2007.3 Between 2007 and 2010, Dakota County lost approximately 7,500 jobs. Data show the number of jobs in 2014 has surpassed the number of jobs prior to 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 economic health. Dakota County added about 2,000 jobs between the third quarter of 2014 and the same quarter of 2013. For more information, see http://www.positivelyminnesota.com.
This chart shows employment trends for the top five industry categories with the most establishments in 2013.4 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 before the recession and the trend continued after the recession. The increase totaled more than 9,600 jobs between 2000 and 2013.
This chart shows changes in the number of establishments in the top five industry categories in Dakota County.5 The number of establishments in four of these five industry categories increased between 2000 and 2007, and declined after 2007, except for health care services, which saw an increase of 122 establishments between 2007 and 2013. Wholesale trade experienced a slight decrease (-13) in establishments between 2000 and 2007 and continued to see a decline of (-114) between 2007 and 2013. Construction also experienced a large decrease (-265) between 2007 and 2013. The recession seemed to have the largest impact on construction, professional services and wholesale trade industries, as they have not regained the number of establishments lost during the recession.
This chart shows the trend in average weekly wages6 for the top five industry categories with the most establishments in 2013.7 The average weekly wages of these industries increased at about 3% (+$24 per week) annually between 2003 and 2007. However, the growth rate decreased to about 1.6% (+$13 per week) between 2007 and 2013. Health care and professional services were affected the most by the recession. The annual growth rate of average weekly wages prior to the recession for health care and professional services was 2.7% ($16.40) and 4.5% ($56) compared to 0.4% ($2.80) and 1.0% ($14.60) post-recession, respectively. The average weekly wages for construction continued to increase during and after the recession.
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 as a benchmark for before and after the recession for jobs, establishments, and weekly wages.
4 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 jobs in 2013 were retail (21,958), health care (20,434), manufacturing (19,430), accommodation (14,220), and education services (13,061).
5 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.
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).