According to new data from the Minnesota Department of Employment and Economic Development (DEED), Minnesota experienced another robust month of job and labor force growth in May.
The state added 6,600 jobs, which is double the national rate of job growth (0.2% compared to 0.1%). Additionally, Minnesota’s labor force expanded by 2,236 people, continuing its recent streak of strong labor market growth.
Over the past 12 months, Minnesota has consistently added people to its labor force. Despite this growth, Minnesota’s unemployment rate slightly increased by one-tenth of a percentage point to 3.3%, compared to the national rate of 4.2%. The labor force participation rate remained steady at 68.2%, slightly lower than the national rate of 62.4%.
“May was another good month for Minnesota’s job market, with employment growth much stronger than the nation as a whole,” said DEED Commissioner Matt Varilek. “We’re grateful to the Governor and Legislature for adopting a new budget that will enable us to drive continued progress, with new flexibility for the Minnesota Forward Fund, the continuation of our Drive for 5 campaign to provide workforce training in high-demand fields and new funding to support Minnesota’s public service workforce.”
Over the course of the month, six supersectors experienced job growth, with Leisure & Hospitality showing the most significant increase, adding 2,100 jobs (or 0.8%). Education & Health Services also saw substantial growth, adding 3,800 jobs (or 0.6%).
Trade, Transportation & Utilities followed with an increase of 2,500 jobs (or 0.5%). Conversely, Mining & Logging, Construction, and the Other Services supersector experienced job losses. Mining & Logging lost 200 jobs (or 3.0%), Construction lost 1,100 jobs (or 0.8%), and the Other Services supersector lost 1,000 jobs (or 0.8%).
Despite these losses, government employment increased by 400 jobs over the month, but these gains were limited to state and local hiring. On a broader scale, federal employers in Minnesota shed 400 jobs. In comparison, Minnesota’s job growth outpaced the national average over the year.
The state added 40,192 payroll jobs, representing a 1.3% increase compared to the national average of 1.1%. Additionally, the private sector added 32,356 jobs, marking a 1.2% increase over the year, compared to the national average of 1.1%.
“Overall, May was a good month for Minnesota’s steadily growing job market,” said DEED Labor Market Information Director Angelina Nguyen. “We are pleased to see growth faster than the national average this month as we continue adding workers and jobs.”
