|
|
This report was edited for length
Minnesota’s unemployment rate ticked up one-tenth of a point to 1.9% in August, although it remains at a historic low, according to numbers released today by the Minnesota Department of Employment and Economic Development (DEED). Minnesota’s labor force participation rate ticked down two-tenths of a point to 68.2%. In August, the U.S. unemployment rate rose by two-tenths of a point to 3.7% and the labor force participation rate increased by three-tenths of a point to 62.4%.
On a seasonally adjusted basis, Minnesota lost 3,100 jobs in August, down 0.1% from July, following the addition of 17,100 jobs (revised) in July 2022. The private sector lost 5,900 jobs in August, down 0.2%, with Government adding 2,800 up 0.7%. Minnesota’s July 2022 employment was revised downward by 2,000 jobs in total and 2,200 jobs in the private sector. The U.S. gained 315,000 jobs in August, up 0.2% from July, with the private sector adding 308,000 jobs, up 0.2% on a seasonally adjusted basis.
Job growth has been less consistent than usual coming out of the pandemic recession, however the trend toward growth has remained strong. Over the past three months, both Minnesota and U.S. employment have grown .5%.
“We saw a pause in our job growth in August, amidst an otherwise record-setting year for Minnesota’s economy,” said DEED Commissioner Steve Grove. “Despite the fluctuations we’ve seen in the global economy, Minnesota’s resiliency remains strong. Our number one focus continues to be on connecting job seekers and businesses during a time of opportunity for Minnesota’s labor market.”
Looking at unemployment and labor force participation by race and ethnicity in Minnesota, the labor force participation rate ticked up to 80.4% for Hispanic workers, down to 66.8% for Black workers and remained level at 68.6% for white workers in August, based on 12-month moving averages. While the labor force participation rate continued to rise for all groups of workers over the year, it has not recovered to pre-pandemic levels for white and Black workers in Minnesota. Unemployment rates also vary by racial and ethnic groups, based on 12-month moving averages, with Black Minnesotans seeing a significant drop in unemployment since July, but an increase since last August.
In Minnesota, average hourly wages for all private sector workers rose 24 cents to $34.62 in August over the month. Over the year average hourly earnings rose $1.90, up 5.8%. Over two years, average hourly earnings increased $2.93 or 9.2%. Nationally private sector wages rose 4 cents (0.1%) over the month to $32.14, up 4.4% OTY and up 8.9% over two years. The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in August, 8.3% over the year and 13.9% over two years.
Here are noteworthy supersectors that gained or lost jobs on a seasonally adjusted basis over the month in August in Minnesota:
Gains were in Professional & Business Services up 300 jobs or 0.1%, Education & Health Services up 1,900 or 0.3%, Other Services up 200 or 0.2% and Government up 2,800 jobs or 0.7%.
Losses were in Construction, down 1,900 or 1.4%, Manufacturing down 3,200 or 1%, Trade, Transportation & Utilities down 2,300 or 0.4%, Information down 500 or 1.1% and Leisure & Hospitality down 100 or 0%.
Over the year (OTY), Minnesota gained 72,549 payroll jobs, up 2.5%, over the year. The private sector gained 67,085 jobs, up 2.7% over the year.
Nine of 11 supersectors posted positive OTY employment growth. Manufacturing, Trade, Transportation & Utilities, Information, Financial Activities, Professional & Business Services, Education & Health Services, Leisure & Hospitality, Other Services and Government all posted OTY growth. Of those:
Professional & Business Services grew 4.4% OTY (16,495 jobs). Professional, Scientific, and Technical Services led growth, up 6.4% (10,259 jobs), along with Administrative and Support & Waste Management Services, up 3.8% (4,913 jobs) with Employment Services (temp help) up 3.2% (1,803) jobs. Management of Companies gained 1,323 jobs OTY (1.5%).
Manufacturing posted 14,581 additional jobs, up 4.6% OTY. All published sectors showed growth; Durable Goods employment grew 5.4% (10,937 jobs) while Non-Durable Goods grew 3.2% (3,644 jobs). Manufacturing employment growth continued to be stronger than the nation, which was at 3.7% OTY in August.
Leisure & Hospitality continued to post the highest OTY growth of all the supersectors, up 6.5% with the addition of 16,643 jobs. Arts, Entertainment, & Recreation posted 10.7% growth (4,951 jobs). Accommodation and Food Services grew 5.5% (11,692 jobs). As this supersector recovers from the pandemic, we see slowing – though still very strong – OTY growth rates.
Mining & Logging lost 361 jobs, down 5.3% and Construction lost 1,568 jobs down 1.1% OTY in August.
U.S. employment grew 3.8% OTY with the private sector up 4.4% in August. Nationally, all supersectors showed gains OTY.
Leave a Reply