Retail Resurgence
This month's blogs focus on the economic importance and the hiring opportunities in the Retail Trade sector, which is the third largest employing industry in the state. With more than 283,600 jobs at just under 18,000 establishments, Retail Trade accounts for almost 10%, or one in every 10 jobs in Minnesota. The concentrations range from a high of 12.9% of total employment in Central to 8.8% in the Twin Cities. Every regions sees seasonal shifts in retail hiring, especially during the holidays. Retailers reported nearly 28,500 job vacancies in 2022, the third highest number ever reported. For more local information, please reach out to your Regional Analyst!
With winter fast approaching, and the holiday season along with it, so too comes seasonal hiring. Much of this hiring will come within the Metro Area's third largest-employing industry: Retail Trade. In 2023, this industry was comprised of nearly 8,200 establishments supplying over 154,400 jobs in the metro. And these jobs are dispersed among a variety of areas, from department stores and supercenters, to grocery and liquor stores, to furniture and electronics retailers, to clothing stores, jewelry retailers, sporting goods stores and more.
Retail Trade is an important industry in Central Minnesota, both for holiday shopping and for employment. The 13-county planning region had more than 36,250 jobs at 2,174 establishments in 2023, accounting for about 13% of total jobs (or about one in every eight jobs). At that level, Central Minnesota actually has the highest share of Retail Trade employment of the six regions in the state.
Retail Trade employed nearly 17,000 people at 1,250 establishments in Northeast Minnesota in 2023. That's enough to make it the second largest employing sector in the region, behind only Health Care & Social Assistance. Sector employment levels through the first two quarters of 2023 effectively matched those of 2019, meaning that Retail Trade proved more resilient to the impacts of the COVID-19 pandemic than most industries. The more than 1,100 jobs that were lost in the immediate outbreak have been recovered over the last three years. By comparison, total employment across all industries remains over 6,000 (-4.2%) jobs below 2019 levels.
Northwest Minnesota retail employment peaks earlier than statewide, as tourism drops off and seasonal residents migrate south in the winter months. That drop in demand more than offsets holiday-inspired shopping. Not only is Northwest Minnesota's seasonal effect earlier, it is also more pronounced than statewide. While holiday hiring is important, summer is clearly more critical to Northwest retail employment.
As the holiday shopping season kicks into high gear, Southeast Minnesota's Retail Trade sector showcases its economic significance, ranking as the third-largest industry and accounting for 10.8% of the region's total employment, or about one in every 9 jobs. In the second quarter of 2023, the Retail Trade industry had 1,589 establishments and provided 26,522 jobs, with an average annual wage of $32,292, highlighting its vital role in the local economy.
With just over 19,000 jobs at 1,441 establishments in 2023, Retail Trade is the third largest employing industry in Southwest Minnesota. Behind just Manufacturing and Health Care & Social Assistance, Retail Trade actually accounts for one in every nine jobs in the region, providing a variety of important job and career opportunities for workers across the age spectrum.
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