Minnesota’s Unemployment Rate Hit 2.5% in December
Minnesota ended 2022 with another small bump in its unemployment rate.
In December, the state logged an unemployment rate of 2.5%, up two-tenths of a percent from the prior month. State officials have repeatedly emphasized that the rate is still “historically low.” It’s well below pre-pandemic levels, too: In March 2020, just before the pandemic-induced closure of many businesses, the state reported an unemployment rate of 3.5%.
Minnesota started 2022 with an unemployment rate of 2.9%.
The state’s December unemployment rate still outpaced the national average, which sat at 3.5% for the month.
Compared to November, Minnesota lost 5,200 jobs in December, according to the Minnesota Department of Employment and Economic Development’s (DEED) monthly jobs report. The private sector did report a net increase in jobs, but that was offset by losses in government jobs, according to DEED.
“While the private sector gained 900 jobs in December, it was losses in Government jobs (down 6,100) that drove the jobs decrease,” DEED officials said in a Thursday news release. “Those losses were entirely in local government.”
Where were Minnesotans finding jobs last month? The leisure and hospitality sector was one growth area, adding 4,300 jobs in December, up 1.6% compared to November. Ditto for the trade, transportation, and utilities sector, which added 2,400 jobs, up 0.5%.
However, construction, manufacturing, and professional services all saw job declines last month.
Despite the overall loss of jobs last month, DEED commissioner Steve Grove said that “indicators point to a strong underlying economy.”
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