Minnesota unemployment rate decreases to 3.1%, lowest level since 2019

(The Center Square) – Minnesota’s labor force participation rate held at 67.7%, while 2,000 jobs were lost across the state in December 2021, the Minnesota Department of Employment and Economic Development announced Thursday.

The private sector lost 2,200 jobs, the department’s news release said.

“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 nonfarm unemployment and upward by 4,600 in the private sector,” the release said. “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.”

Minnesota’s unemployment rate decreased two-tenths of a percentage point, to 3.1%, as people moved from unemployment to employment. Not seasonally adjusted, Minnesota added 9,100 jobs from August through October; 12,300 from September through November; and 7,200 from October through December (0.3%, 0.4%, and 0.2% increases, respectively).

“Today’s jobs report is a reminder that economic progress in these times is not a straight line,” DEED Commissioner Steve Grove said in the release. “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.”

The education and health services (1,800 jobs), information (300 jobs), other services (400 jobs), government (200 jobs), and construction (300 jobs) sectors experienced increases in December, the release said. The financial activities (900 jobs), professional and business services (1,800 jobs), manufacturing (200 jobs), trade, transportation, and utilities (800 jobs), and leisure and hospitality (600 jobs) sectors experienced job decreases, the release said. Mining and logging jobs were level with November’s, seasonally adjusted.

Minnesota gained 168,247 payroll jobs, a 6.2% increase, over the year, and its private sector gained 163,477 jobs, up 7.1% over the year. Gains put total nonfarm employment 109,100 jobs, short of December 2019 employment and 89,300 jobs short in the private sector. The state has gained 307,400 jobs (74% regain, 77% regain for the private sector) since its February through April 2020 loss of 416,300 jobs.

“Many Minnesotans continue to be out of work, but the employment impact of the pandemic on workers has been difficult to measure,” the release said. “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.”

Nationally, unemployment fell three-tenths of a percentage point, to 3.9%, and labor force participation rate held steady at 61.9%. The country gained 199,000 jobs (0.1% increase) in December, with a 211,000-job increase (0.2%) in the private sector.

Unemployment resources are at careerforcemn.com/GoodJobsNow.

Adjusted Unemployment Rate, based on 12-month moving averages – December 2021

Month/YearTotalBlackHispanicWhiteDec-216.2% 11.1%2.7% 5.4% Nov-216.3% 10.0% 2.8% 5.6% Dec-206.7% 15.7% 7.4% 6.0%

Minnesota and U.S. Employment and Unemployment – December 2021

Seasonally AdjustedNot Seasonally AdjustedUnemployment RateDec. 2021 Nov. 2021Dec. 2021Dec. 2020Minnesota3.1%3.3%2.7%4.9%U.S.3.9%4.2%3.7%6.5%Non-Farm JobsDec. 2021Nov. 2021Dec. ’20- Dec. ’21 Level ChangeDec. ’20- Dec.’21 % ChangeMinnesota2,887,4002,889,400168,2476.2%U.S.148,951,000148,752,0006,568,0004.6%

Minnesota and U.S. Over-the-Year (OTY) Employment Change, Not Seasonally Adjusted: December 2020-December 2021

Industry SupersectorOTY Job ChangeOTY Growth Rate (%)U.S. OTY Growth Rate (%)Total 168,2476.24.6Private 163,4777.15.1Mining & Logging-28-0.58.8Construction8,8947.72.1Manufacturing14,0254.62.9Trade, Transport. & Utilities12,8612.53.1Information2070.55.4Financial Activities-4,890-2.51.8Prof. & Business Services20,7395.84.9Ed. & Health Services6,0551.12.4Leisure & Hospitality95,07264.219.6Other Services10,54210.96.4Government4,7701.21.9

Metropolitan Statistical Area (MSA) Over-the-Year (OTY) Employment Change, Not Seasonally Adjusted: December 2020-December 2021

Metropolitan Statistical AreaOTY Employment ChangeOTY Employment Change (%)Minneapolis-St. Paul MN-WI MSA98,8205.3Duluth-Superior MN-WI MSA6,1654.9Rochester MSA6,5205.6St. Cloud MSA4,9584.8Mankato MSA2,4294.5

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