Minnesota jobs numbers improve in May; wages and labor force still lagging
Minnesota’s unemployment rate dipped slightly in May — but economists say the picture is still mixed.
ST. PAUL, Minn. (KEYC) - The state’s jobless rate fell one-tenth of a point to 4.4% last month, inching closer to the national rate of 4.3%, according to new data from the Minnesota Department of Employment and Economic Development.
Minnesota added 5,400 nonfarm jobs in May — outpacing the national growth rate for the second straight month.
DEED Deputy Commissioner Kevin McKinnon called it encouraging progress, but cautioned the state isn’t out of the woods.
“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.” — Kevin McKinnon, DEED Deputy Commissioner
The biggest job gains came in Leisure and Hospitality (2,400 jobs) and Construction (2,100 jobs). Financial Activities saw the steepest drop, losing 2,400 jobs.
Over the past year, Minnesota added nearly 20,000 payroll jobs — growing at twice the national rate.
But not all the numbers are trending in the right direction.
The state’s labor force participation rate fell for the sixth straight month, dropping to 67.2%. And with inflation running at 4.2%, wage growth hasn’t kept pace.
DEED Labor Market Information Director Angelina Nguyen says May’s job numbers are a relief — but there’s still work to do.
“Wage and labor force growth have yet to reverse course.” — Angelina Nguyen, DEED Labor Market Information Director.
Visit the DEED website to view full state and national employment statistics, monthly jobs numbers andfurther analysis of this month’s data.
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