Health Care Driving Minnesota Job Creation

Health Care Driving Minnesota Job Creation

More than 40 percent of state’s new jobs in last year are in health care.

More than 40 percent of the new jobs added in Minnesota during the last 12 months are healthcare-related, according to a review of the state’s employment data.
Statistics from the Minnesota Department of Employment and Economic Development show that the state added 31,527 jobs from April 2015 to April 2016. Increased healthcare hiring accounted for 13,066 of those new jobs: 41.4 percent of the total job creation over the last 12 months.
“Health care grew throughout the recession. It never stopped growing,” said Oriane Casale, assistant director of DEED’s Labor Market Information Office.
In its monthly job reports, DEED’s employment overview combines education and health services into a single category, following the practice of the federal Bureau of Labor Statistics. But a deeper look at DEED’s jobs data shows the employment numbers for more specific categories within each industry.
The biggest gain in healthcare hiring came from ambulatory health care services, which added 10,879 jobs. That single category accounted for 34.5 percent of all new jobs in Minnesota over the last 12 months. Employment in the ambulatory health care category grew 7.7 percent year-over-year, growing at a faster rate than any other job sector in the state.

Hospitals in Minnesota added 1,750 jobs in the past year. Nursing and residential care facilities added 437 jobs over the same time period.
DEED’s numbers also show 15,949 Minnesota jobs in medical equipment and supply manufacturing at the end of April. That category added 442 jobs over the past 12 months, an uptick of 2.9 percent from a year ago. But those positions are counted under the broader category or manufacturing, not health care.
The passage of the federal Affordable Care Act has been driving some of the increases in health care employment, because clinics and health care systems are now seeing a larger number of patients who have health insurance coverage.
“The Affordable Care Act has essentially added a lot more people on the insurance rolls,” said Stephen Parente, director of the Medical Industry Leadership Institute at the University of Minnesota’s Carlson School of Management.
Last week, DEED announced that employers added 15,600 jobs during the month of April. Over the last year Minnesota’s overall job growth rate has been 1.1 percent, below the national rate of 1.9 percent. But Minnesota’s seasonally adjusted employment rate stood at 3.8 percent in April, notably lower than the 5 percent national rate of unemployment.
Health Care Jobs in Minnesota 

  Total Jobs, April 2016 Jobs Added Since April 2015 Percentage Increase
Total nonfarm employment 2,875,102 31,527 1.1%
Ambulatory healthcare services 152,826 10,879 7.7%
Hospitals 106,275 1,750 1.7%
Nursing and Residential Care Facilities 106,505 437 0.4%

Source: Minnesota Department of Employment and Economic Development. 

Note: TCB looked at health care employment categories, but excluded educational services and social assistance, which are counted as part of the DEED’s larger education and health services category.