Minnesota Posts Another Month of Strong Job Growth; Private Sector Fully Recovers From Pandemic Job Loss

(KDLM) –

Minnesota has completely recovered the private sector jobs it lost during the first months of the COVID-19 pandemic, according to new data from the Minnesota Department of Employment and Economic Development (DEED).

Minnesota gained 10,100 jobs in the last month (seasonally adjusted basis), up 0.3%. The private sector gained 9,400 jobs, up 0.4%. In comparison, U.S. employment increased by 311,000 jobs, up 0.2%, with the private sector up 265,000 jobs, or 0.2%, from January to February.

Minnesota lost 416,000 jobs from February through April 2020 (benchmarked) and has since gained 405,900 jobs as of February 2023, or 97.6% of the jobs lost (seasonally adjusted basis). The private sector lost 385,900 jobs from February through April 2020 and has regained 388,700 jobs. This marks the first month when the private sector has fully recovered from pandemic-induced loss and went on to gain an additional 2,800 jobs.

From January to February, Minnesota’s unemployment rate ticked up one-tenth of a percent to 3% and the labor force participation rate ticked down one-tenth of a percent to 68%. Nationally, over the month, the unemployment rate rose two-tenths of a percent to 3.6% and the labor force participation rate ticked up one-tenth percent to 62.5%.

“Minnesota’s continued job growth is great news – it’s a sign of the ongoing strength of Minnesota companies and employers,” said interim DEED Commissioner Kevin McKinnon. “We’re focused on helping Minnesotans who are unemployed connect with the many good jobs available right now across industries and throughout the state.”

Over the month in Minnesota, eight supersectors gained jobs on a seasonally adjusted basis, including notable growth in the following:

• Construction gained 2,200 jobs, 1.7%.
• Other Services gained 1,800 jobs, up 1.7%.
• Manufacturing gained 1,500 jobs, 0.5%.
• Professional & Business Services gained 1,300 jobs, up 0.3%.
• Education Health Services gained 1,000 jobs, up 0.2%, driven by a gain of 2,600 jobs (0.5%) in Health Care & Social Assistance.

Over the year (OTY) in Minnesota, all supersectors posted positive annual growth except Mining & Logging, which lost 104 jobs, down 1.7%. Noteworthy changes:

• Leisure & Hospitality continued strong recovery from the pandemic, posting the largest growth of all supersectors, gaining 19,737 jobs, up 8.4%. This growth was driven by double-digit percentage increases in Arts, Entertainment & Recreation, and Accommodation.
• Construction gained 4,905 jobs (4.3%).
• Government continued to post positive growth over the year, up 9,749 jobs (2.4%) outpacing U.S. growth (1.6%).
• Education & Health Services gained 12,478 jobs (2.3%), mostly driven by growth in Nursing & Residential Care Facilities and Social Assistance.
• Trade, Transportation & Utilities added 6,063 jobs, up 1.2%.

Minnesota and U.S. Employment and Unemployment – February 2023

Minnesota unemployment rate by race and ethnicity – 12 Month Moving Averages – February 2023

Source: Current Population Survey Demecon, 12-month moving averages. This data is volatile because of the small sample sizes. Monthly data is currently only available for the listed racial and ethnic groups.

Minnesota and U.S. Over-the-Year (OTY) Employment Change, Not Seasonally Adjusted: February 2022-Feburary 2023

Minnesota Metropolitan Statistical Area (MSA) Over-the-Year (OTY) Employment Change, Not Seasonally Adjusted (NSA): February 2022 – February 2023

Over the Year Job Growth – Neighboring MSAs, Employment Change, Not Seasonally Adjusted (NSA): January 2022 – January 2023

Note that the latest data will be updated by the appropriate government agency in the relevant neighboring state. DEED can only share publicly available information at the time of this publication for our neighboring MSAs.

Visit the DEED website to see DEED’s alternative measures of unemployment. You can also find monthly jobs numbers and unemployment data on DEED’s website. In addition, see related articles about job growth and labor market changes in the latest issue of Minnesota Employment Trends. Access resources to help Minnesotans prepare for and find employment now at CareerForceMN.com/GoodJobsNow.