The Mayo Clinic and Jobs

By Brent Pearson
June 2013

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The Mayo Clinic has a major effect on the economy of southeastern Minnesota, with a proposed $5 billion expansion of the world-renowned medical center likely to stimulate further growth.

Destination Medical Center (DMC) is a $5 billion plan to expand the Mayo Clinic’s Rochester campus and further enhance the region’s position as a global destination for health care services. Mayo officials estimate the expansion will create between 25,000 and 30,000 direct jobs, another 10,000 to 15,000 indirect jobs, and 1,800 to 2,200 construction jobs over the next 20 years. In all, Mayo officials estimate 35,000 to 45,000 jobs will be added in the region, plus significant new tax revenue.

How do these employment projections compare with DEED’s earlier employment projections for the region?

DEED estimates, which did not factor in the Mayo proposal, also project steady job growth in the region, based partly on the expectation that the medical complex would continue growing. Beyond that, though, it’s difficult to compare DEED and DMC projections because they measured different time periods and possibly different areas.

DEED’s employment projections are for the 10-year period from 2010 to 2020 (see Table 1), while the DMC projections are for a 20-year period.[1] DEED’s projections are for 11 counties in southeastern Minnesota (Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, Wabasha, and Winona counties), while the DMC projections are for the “Rochester area.”

Table 1

Southeast Minnesota Employment Projections

Occupation

Percent
Change

Total Change
2010-2020

Replacement Hires
2010-2020

Total Hires
2010-2020

Total, All Occupations

14.3

36,384

59,620

97,350

Health Care Practitioners and Technical Occupations

Health Diagnosing and Treating Practitioners

25.8

3,450

2,540

5,990

Registered Nurses

24.5

2,097

1,550

3,650

Physicians and Surgeons, All Other

28.8

299

200

500

Pharmacists

23.9

133

140

270

Health Technologists and Technicians

24.9

2,111

1,750

3,860

Licensed Practical and Licensed Vocational Nurses

20.9

472

600

1,070

Medical and Clinical Laboratory Technologists

20.7

301

280

580

Emergency Medical Technicians and Paramedics

27.2

197

140

340

Pharmacy Technicians

27.5

189

120

310

Radiologic Technologists and Technicians

26.8

168

100

270

Other Health Care Practitioners and Technical

23.4

67

100

170

Health Care Support Occupations

Nursing, Psychiatric, and Home Health Aides

37.8

3,099

1,060

4,140

Home Health Aides

61.8

2,454

510

2,960

Nursing Aides, Orderlies and Attendants

15.3

645

540

1,180

Occupational Therapy and Physical Therapist Assist

38.7

82

30

110

Other Health Care Support Occupations

25.1

1,075

690

1,770

Commercial and Professional Occupations

Supervisors of Office and Administrative Support Workers

12.4

251

540

790

Information and Record Clerks

13.3

966

2,170

3,150

Material Recording, Scheduling, Dispatching and Delivery

0.9

52

1,540

1,830

Secretaries and Administrative Assistants

19.0

1,063

750

1,820

Other Office and Administrative Support Workers

13.0

945

1,320

2,300

Restaurant and Retail

Supervisors of Food Preparation and Serving Workers

4.7

70

310

380

Cooks and Food Preparation Workers

6.3

256

980

1,240

Food and Beverage Serving Workers

7.4

832

4,500

5,330

Other Food Preparation and Serving Related Workers

1.9

32

860

910

Retail Sales Workers

12.8

1,964

5,490

7,470

Hotel and Hospitality

Hotel, Motel, and Resort Desk Clerks

11.3

87

310

400

Construction Related

Supervisors of Construction and Extraction Workers

25.0

153

140

290

Construction Trades Workers

28.0

1,955

1,520

3,480

Helpers, Construction Trades

48.0

73

40

110

Other Construction and Related Workers

6.6

50

200

250

Source: DEED Employment Outlook Projections

Comparing the Projections

The DMC projections (see Table 2) show significant growth in health care and commercial/professional occupations, along with lower growth in the service sector (restaurants, retail, hotels, hospitality). The wages for these jobs range from health care professionals, which DMC projected will earn $70,000 annually, to lower-wage service-sector employment, including hotel, hospitality, restaurant and retail jobs, projected to pay $21,500 annually. With construction, infrastructure and transportation, education, and office and business-support occupations added to the mix, DMC estimates the 26,800 to 32,200 permanent jobs created by the expansion of Mayo Clinic will pay $53,000 annually on average.

Table 2

Destination Medical Center Job Breakdown

Estimated Mayo Clinic and
DMC Related Jobs

Range of Job Growth

Salary Range

Estimated Average
Mid-Point

Mayo Clinic Jobs

Physicians and Scientists

911

1,041

 

Allied Health Professionals

12,226

13,973

 

Other

863

986

 

Subtotal - Mayo Clinic

14,000

16,000

$70,000

Commercial/Professional

5,000

5,500

$35,000

$116,000

$45,000

Restaurant/Retail

1,500

2,500

$18,000

$25,000

$21,500

Hotel/Hospitality

1,000

1,500

$18,000

$25,000

$21,500

Construction Related

1,800

2,200

$34,500

$62,000

$39,700

Other

Trade, Transportation, and Utilities

1,063

1,367

$20,000

$46,500

$33,200

Education and Non-Mayo Health Services

1,496

1,924

$27,500

$78,500

$37,100

Other Services

941

1,210

$19,000

$38,000

$28,500

Subtotal – Other

3,500

4,500

 

$33,600

Permanent Jobs and Salary Range

26,800

32,200

 

$53,000

Source: Destination Medical Center “Job Growth Breakdown”

DEED projects similar overall growth over a shorter period but possibly for a larger area. Moreover, the pattern of occupational growth is also similar. Overall, DEED’s projections show southeastern Minnesota adding 36,384 new jobs (14.3 percent growth) over the 10-year period. An additional 59,620 jobs are projected to open as a result of workers who leave the region or retire.

Similar to DMC projections, DEED projects health care practitioners and technical occupations, led by registered nurses, to have some of the highest growth rates. Health diagnosing and treating practitioners are expected to add 3,450 new jobs, while technologists and technicians are expected to add 2,111 jobs. Significant growth is also expected in health care support occupations, with more than 6,000 new jobs. Health care practitioners and technical occupations pay $83,637 on average annually, while health care support occupations pay $30,249.

DEED’s projections also show growth in commercial and professional, restaurant and retail, hotel and hospitality, and construction-related occupations in southeastern Minnesota. Among these, medical secretaries are projected to add 710 new jobs, while retail sales worker jobs are expected to grow by about 1,960. Construction occupations are projected to add more than 2,200 jobs in the region.

Overall, DEED and DMC projections show similar growth patterns, even though DEED did not factor in growth resulting from the DMC proposal. Mayo plays a huge role in the economy of southeastern Minnesota, both through direct and indirect job creation. An expansion of Mayo Clinic in the region can only bolster this growth.

More details about the project are available at www.dmc.mn.


[  1]DEED updates employment projections every two years using national models and local employment statistics in collaboration with the Bureau of Labor Statistics.