Growth in four Minnesota industry supersectors better than national numbers

(The Center Square) – Compared with the rest of the country, leisure and hospitality, professional and business services, construction, and manufacturing have grown in Minnesota this past year, according to the Minnesota Department of Employment and Economic Development.

Minnesota has gained 304,400 jobs or 73% of the 416,300 jobs lost from February through April 2020. Seventy-seven percent of private sector jobs are back, in terms of numbers. In the past year, Minnesota gained 114,609 payroll jobs and the private sector gained 115,590 jobs.

“Continued job growth this fall has put Minnesota on steadier path for growth,” DEED Commissioner Steve Grove said in a statement. “Combined with significant wage increases, the job market in Minnesota is hot. We’re reaching out every day to assist thousands of Minnesotans in finding meaningful careers that will help advance our economy at this critical point in our pandemic recovery.”

Seasonally adjusted, the following sectors added jobs:

• Leisure & hospitality (gain of 2,900)
• Professional and business services (2,100)
• Educational and health service (1,600)
• Other services (1,200)
• Trade, transportation and utilities (600)
• Construction (1,500) 
• Manufacturing (1,500)

“Construction employment is near an all-time high for this time of year,” the release said.

Four supersectors lost jobs in November. Those included information (700), financial activities (400), and mining and logging (100). Government was the supersector that experienced the highest number of job losses: 1,600.

Minnesota gained 8,600 jobs but 2,575 residents left the labor force in November. In terms of percentage points, the unemployment rate decreased two-tenths, to 3.3%, (seasonally adjusted) while the labor force participation rate decreased one-tenth, to 67.7%. The private sector gained 10,200 jobs, an increase of 0.4%.

“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.”

The U.S. gained 210,000 jobs in November. Private sector gains were a tenth of a percentage point higher, at 235,000. The U.S. unemployment rate decreased four-tenths of a percentage point, to 4.2%. With 594,000 workers, the labor force participation rate last month was 61.8%, which is two-tenths higher than October’s.

Average hourly earnings rose 42 cents, to $33.79, for all private sector workers in the North Star state. Since November 2020, average hourly earnings have risen $1.73, which is a 5.4% increase. Private sector wages have risen 4.1% in the past year and 9.6% over the past two years, but the Consumer Price Index rose 6.8% last year and 8.1% since November 2019.

“Adjusted unemployment rate” in the table below includes both Minnesotans who are currently looking for work who would have expected to be working or looking for work if the COVID-19 pandemic had not affected the economy.

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

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

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

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

Monthly jobs numbers and unemployment data are available on the DEED’s website. CareerForceMN.com/GoodJobsNow provides resources for job seekers.