The State Added Thousands of Jobs Last Month. One Number Is Still Headed the Wrong Way

SAINT PAUL, MN — Minnesota's unemployment rate edged down one-tenth of a percentage point to 4.4 percent in May, narrowing the gap with the national rate of 4.3 percent, according to data released Wednesday by the Minnesota Department of Employment and Economic Development.

The state added 5,400 nonfarm jobs last month, a 0.2 percent gain on a seasonally adjusted basis, outpacing U.S. nonfarm growth of 0.1 percent for the second consecutive month. Minnesota's private sector added 5,900 jobs, also up 0.2 percent.

But one trend is moving in the wrong direction: the state's labor force participation rate slipped two-tenths of a percentage point to 67.2 percent in May, marking its sixth straight monthly decline. The national participation rate held steady at 61.8 percent.

"It's encouraging to see some progress amidst a mixed economic picture both in the state and the nation as a whole," said Kevin McKinnon, DEED deputy commissioner.

Leisure and hospitality led sector gains, adding 2,400 jobs, up 0.9 percent, followed by construction with 2,100 jobs, up 1.4 percent. Financial activities posted the largest decline, shedding 2,400 jobs, down 1.3 percent. Two supersectors were flat over the month.

Over the past year, the state has added 19,669 payroll jobs, a 0.6 percent gain that outpaces U.S. employment growth of 0.3 percent over the same period. Education and health services led annual gains with 16,718 jobs added, up 2.7 percent, while financial activities saw the steepest annual losses, shedding 5,848 jobs, down 3.1 percent.

The consumer price index came in at 4.2 percent in May, outpacing both state and national wage growth rates for the second consecutive month.

"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."