MN Employment and Economic
Development
mn.gov/deed
St. Paul, Minn. — Minnesota’s unemployment rate inched down one-tenth of a percentage point to 4.4% in May, reflecting the state’s progress toward closing a gap with the national unemployment rate (flat over the month at 4.3%) according to data released today by the Minnesota Department of Employment and Economic Development (DEED).
“It’s encouraging to see some progress amidst a mixed economic picture both in the state and the nation as a whole,” said DEED Deputy Commissioner Kevin McKinnon. “Minnesota continues to invest in upskilling our state’s workforce and attracting and supporting business growth to maintain a diverse, resilient economy amidst these challenging conditions.”
After seeing nearly flat jobs growth or losses in December through March, the state’s over-the-month jobs growth in May outpaced the national rate for the second consecutive month, gaining 5,400 nonfarm jobs (up 0.2%) on a seasonally adjusted basis while the U.S. total nonfarm employment increased by 172,000 jobs (up 0.1). Minnesota’s private sector gained 5,900 jobs (up 0.2%) and the U.S. private sector gained 120,000 jobs, also 0.1%.
The state’s labor force participation rate ticked down two-tenths of a percentage point to 67.2% over the month, the sixth consecutive month of declines. The national rate held even at 61.8%. At 4.2% in May, the CPI inflation index outpaced state and local national wage growth rates for the second consecutive month.
Six supersectors in Minnesota gained jobs on a seasonally adjusted basis over the month, led by Leisure and Hospitality (2,400 jobs, up 0.9%) and Construction (2,100 jobs, up 1.4%). Two supersectors were flat. Financial Activities saw the largest decline (2,400 jobs, down 1.3%).
Over the year, Minnesota gained 19,669 payroll jobs (up 0.6%), while U.S. employment grew 0.3%. Minnesota’s private sector also grew 0.6%, compared to 0.5% growth on the national level. Six supersectors in Minnesota gained jobs and five supersectors lost jobs. Education and Health Services saw the largest gains (16,718 jobs, up 2.7%), followed by Construction (7,639 jobs, up 5.1%). Supersectors that led in declines were Trade, Transportation, and Utilities (6,014 jobs, down 1.1%) and Financial Activities (5,848 jobs, down 3.1%).
At 32.7 hours per week, Minnesota’s May average work week decreased one-tenth of an hour over-the-month and stayed steady over-the-year. Nationally, the average work week held at 34.2 hours over-the-month and increased one-tenth of an hour over the year.
Calculating seasonally adjusted two-month job changes:
Minnesota gained 19,000 jobs in February-April, up 0.63%; the U.S. grew 0.25%.
Minnesota gained 23,900 jobs in March-May, up 0.79%; the U.S. grew 0.22%.
“It’s a relief to see the unemployment rate and monthly jobs growth improve in May,” said Angelina Nguyen, DEED Labor Market Information director. “Wage and labor force growth have yet to reverse course.”
