Minnesota companies pulled back in May after many months of employment growth, resulting in 8,600 jobs lost in the state on a seasonally adjusted basis, according to a release issued by the state’s Department of Employment and Economic Development on Friday. The jobless rate in the state increased by a tenth of a percentage point to 2.8%.
In nine of the last twelve months, Minnesota has seen job growth.
Additionally, DEED reported that in May, the state’s labor force participation percentage stayed at 68%. The headline unemployment rate is determined by taking this measure of the percentage of the population that is either employed or actively looking for job.
We’ll be closely monitoring the expansion of the labor force and jobs. DEED Commissioner Matt Varilek stated in the statement, “We continue to believe that a lack of available workers with necessary skills is a constraint on job growth, particularly in certain sectors.” “Minneapolis job seekers are still being reached out to by DEED and our agency partners to assist them in getting ready for in-demand jobs.”
Nationally, the unemployment rate ticked up one-tenth of a percentage point to 4% in May.
Minnesota’s private sector lost 9,800 jobs, down 0.4% over the month. Sectors in Minnesota that gained jobs on a seasonally adjusted basis included Education & Health Services, up 2,800 jobs, and Government up 1,200 jobs. Four sectors in Minnesota lost jobs over the month, including Professional & Business Services, down 9,300 jobs, and Manufacturing down 3,700 jobs.
Minnesota wage growth is outpacing inflation as well as national wage growth, DEED said. Average hourly wages for all private sector workers in Minnesota increased 14 cents, to $37.12, in May. Over the year average hourly earnings increased $1.92, up 5.5%. The Consumer Price Index, a common measure of inflation, rose 3.3% over the year in May.
So far year, Minnesota has gained 34,950 payroll jobs, up 1.2%. Minnesota’s private sector gained 12,079 jobs, up 0.5%. Overall U.S. employment grew 1.8% over the year with the private sector up 1.6%.
By race, the unemployment rate for Black Minnesotans in May was 3.9%; for Hispanics 3.6%; white Minnesotans 2.5%; Asians 1.9%, and Native American Minnesotans 8.3%.
The U-6, a more comprehensive measure of unemployment, remained constant at 5.4% in May from April. This metric takes into account those who have chosen to leave the labor force on their own will, as well as those who are underemployed, marginally employed, working part-time while looking for full-time job, or not actively seeking work.
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