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Over-the-month jobs volatility continues, Minnesota posts strong over-the-year growth
The state unemployment rate moved down two-tenths of a percentage point to 3.1 percent, due to people moving from unemployment to employment, according to numbers released today by the Minnesota Department of Employment and Economic Development (DEED). Minnesota’s labor force participation rate remains steady at 67.7 percent. The U.S. unemployment rate fell three-tenths of a percentage point to 3.9% and the national labor force participation rate held steady at 61.9 percent (revised).
In December, Minnesota lost 2,000 jobs, down 0.1 percent on a seasonally adjusted basis. The private sector lost 2,200 jobs, down 0.1 percent. However, this decline is coupled with a large upward revision of the November employment numbers, which were revised upward by 5,000 jobs in total non-farm unemployment and upward by 4,600 in the private sector. Those upward revisions are on top of the strong growth of 8,600 jobs reported in November, when the private sector gained 10,200 jobs.
“Today’s jobs report is a reminder that economic progress in these times is not a straight line,” said DEED Commissioner Steve Grove. “The good news remains that our economy is bursting with great job opportunities, and DEED will continue our proactive programs to Minnesota job-seekers across the state.”
Job growth has been uneven coming out of the pandemic recession. Translating seasonally adjusted job change into a 3-month moving average series, Minnesota added 9,100, up 0.3 percent in August-October; 12,300, up 0.4 percent in September-November; and 7,200, up 0.2 percent in October- December. Nationally, all three periods have shown a 0.3 percent increase. The U.S. gained 199,000 jobs, up 0.1 percent in December, with the private sector adding 211,000 jobs, up 0.2 percent.
Over the month of December in Minnesota, five supersectors lost jobs, five gained jobs, and Mining & Logging remained level with November on a seasonally adjusted basis.
Losses were in Financial Activities down 900; Professional & Business Services down 1,800; Manufacturing, down 900; Trade, Transportation & Utilities down 800; and Leisure & Hospitality down 600 jobs.
Gains were in Information, up 300; Other Services, up 400; Education & Health Services up 1,800; Government up 200; and Construction up 300 jobs.
Minnesota gained 168,247 payroll jobs, up 6.2 percent, over the year. The private sector gained 163,477 jobs, up 7.1 percent over the year. These gains put total nonfarm employment 109,100 jobs short of December 2019 employment and 89,300 jobs short in the private sector. U.S. employment grew 4.6 per- 163,477 jobs, up 7.1 percent over the year. These gains put total nonfarm employment 109,100 jobs short of December 2019 employment and 89,300 jobs short in the private sector. U.S. employment grew 4.6 percent over the year with the private sector up 5.1 percent in December. For the third time this year, Minnesota’s private sector over-the-year job growth exceeded the nation. Five supersectors in Minnesota showed strength over the year compared to the U.S.: Leisure & Hospitality, Construction, Professional & Business Services, Manufacturing, and Other Services.
Minnesota lost 416,300 jobs from February through April 2020, and has since gained 307,400 jobs, or 74 percent of the jobs lost on a seasonally adjusted basis. The private sector has regained 77 percent of the jobs lost.
Many Minnesotans continue to be out of work, but the employment impact of the pandemic on workers has been difficult to measure. The pandemic caused some people to drop out of the workforce, lowering labor force participation, which resulted in an unemployment rate below what would be expected given job losses.
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