Minnesota started the year with a loss of over 5,000 jobs in January said the Minnesota Department of Employment and Economic Development (DEED) today. This poor start for the year follows a gain of 39,916 jobs over the past twelve months.
Highest January losses were 3,800 government sector jobs. This was followed by a 2,100 loss of jobs in trade, transportation and utilities. Information sector lost 1,800 jobs. Information is now down by around 30 percent since the dot.com recession in 2001. Five other sectors accounted for a 3,100-job loss.
Job growth occurred in three sectors. Education and health services led all sectors in January with 3,000 new jobs. Construction was up 1,900 and leisure and hospitality added 900 jobs.
“Despite job losses in January, the state labor market remains on a growth track, with eight of the 11 major industrial sectors adding jobs over the past year,” DEED Commissioner Katie Clark Sieben announced today. She was pleased to say “The state’s labor force participation rate of 70.5 percent is now at a three-year high.”
Gains over the past twelve months were greatest in education and health services. It led all sectors with 16,719 new jobs. Leisure and hospitality gained by 6,373. Trade, transportation and utilities added 6,040 jobs. Construction was positive by 4,699. Financial activities gained 3,242. Other services grew by 2,875. Professional and business services expanded by 1,517 and government added 542 jobs.
The construction sector has now regained all its jobs lost since the start of the recession in 2008, according to Hine. However, we still have a ways to go to reach Minnesota’s pre-recession peak in 2006.
Logging and mining lost the most jobs over the past year at a drop of 1,255 jobs. Information dropped 832 and manufacturing remained stagnant with a loss of 4 jobs over the year.
Overall, Minnesota’s growth rate was 1.4 percent. The U.S. growth rate was 1.9 percent over the same twelve-month period. There are currently 2,870,700 jobs in Minnesota.
DEED statisticians revised the previous two years job figures in response to the U.S. Bureau of Labor Statistics data updates. Minnesota’s 2015 unemployment rate of 3.5 percent rate was changed upward to 3.7 percent. January’s unemployment rate came in at 3.7 also. As a result, DEED is saying Minnesota’s seasonally adjusted unemployment rate remained stable at 3.7 percent.
The state continues to experience a better unemployment rate than the nation’s 4.9 percent for the same month.
DEED’s revisions show that Minnesota gained nearly 15,000 more jobs than originally reported from December 2013 to December 2014. This gain was offset by revisions showing Minnesota gained about 12,000 fewer jobs than originally reported between December 2014 and December 2015. “These two revisions resulted in a very small net effect,” says Steve Hine, DEED Labor Market Information Office research director.
Outstate Metropolitan Statistical Areas led the way in economic growth over the past twelve months with the Rochester MSA surging 2.5 percent and the St. Cloud MSA rising 2.4 percent. The Mankato MSA swelled by 1.9 percent. Minneapolis-St. Paul MSA trailed in growth as it is up 1.8 percent. The Duluth-Superior MSA fell 1.8 percent.
DEED is charged with developing the state’s economy, stimulating commercial recruitment, expansion and retention, developing the workforce and fostering international trade.