Minnesota’s seasonally adjusted unemployment rate dropped again in November, down to 4.4 percent from 4.6 percent in October, according to numbers released this week by the Minnesota Department of Employment and Economic Development, or DEED.
This month, the unemployment rate decline in Minnesota was due to people moving into employment. November employment data were gathered before Nov. 21, when in-person service at restaurants and bars was temporarily paused and fitness and entertainment centers were temporarily closed to slow the spread of the virus.
Minnesota lost jobs in November on a seasonally adjusted basis for the first time since April as virus cases surged, businesses anticipated restrictions, and winter weather hit earlier than usual. Nonfarm employment fell by 12,600 jobs or 0.5 percent, erasing all but 2,600 of the 15,200 jobs gained in October. The private sector lost 10,300 jobs, down 0.4 percent and government lost 2,300 jobs, down 0.6 percent.
“We can see the light at the end of the tunnel, but many Minnesota workers and businesses still have several tough months ahead while vaccinations are distributed and the pandemic is brought under control,” said DEED Commissioner Steve Grove. “Bi-partisan support for relief targeted to suffering Minnesota small businesses and unemployed workers means help is on the way. This assistance serves as a bridge to hold people over until the arrival of additional federal funding, which remains essential for economic recovery over the coming months.”
The number of unemployed Minnesotans fell 3,557 and the number of employed state residents rose 23,769 in November, while the labor force expanded by 20,212. The labor force participation rate increased a half a percentage point to 67.9 percent in November.
The national unemployment rate fell to 6.7 percent in November from 6.9 percent in October, and the national labor force participation rate edged down to 61.5 percent from 61.7 percent in October, with the loss of 400,000 workers.
Communities of color continue to be more deeply affected by the economic impacts of COVID-19, but there are signs of improvement. Based on rolling averages over the last six months, from June to November 2020, the unemployment rate for Black Minnesotans fell to 11.1 percent, down more than four percentage points from 15.4 percent in October, but still up 6 percentage points from November 2019. For Latinx Minnesotans, unemployment is at 7.7 percent, down more than two percentage points from 9.6 percent in October, but up more than three percentage points from a year ago. White Minnesotans have a six-month-rolling-average unemployment rate of 5.6 percent, down from 6.3 percent last month, but up nearly three percentage points from last year at this time.
Six supersectors lost jobs on a seasonally adjusted basis in November, four gained jobs and mining and logging held steady.
- Losses were greatest in leisure and hospitality, down 10,400 jobs or 5 percent; followed by information, down 600 or 1.5 percent; construction, down 1,500 jobs or 1.2 percent; manufacturing, down 1,900 jobs or 0.6 percent and trade, transportation and utilities, down 1,200 or 0.2 percent in November.
- Financial Activities led the supersectors in job gains, adding 2,100 jobs in November followed by professional and business services, up 1,900 jobs or 0.2 percent; education end health services, up 1,200 jobs or 0.2 percent and other services, up 100 jobs or 0.1 percent on a seasonally adjusted basis.
- Mining and logging held steady.
All supersectors continued to show over-the-year job loss in Minnesota and nationally. Over-the-year job losses were still greatest in leisure and hospitality, down 28.4 percent or 76,008 jobs; information, down 15.1 percent or 6,990 jobs; logging and mining, down 14 percent or 920 jobs; other services, down 9.4 percent or 10,786 jobs and government, down 7.3 percent or 32,048 jobs over the year. U.S. over-the-year job loss stood at 6 percent with the private sector down 6.1 percent in November, very little changed from October.
Visit the DEED website to see DEED’s alternative measures of unemployment. You can also find the monthly jobs numbers and unemployment data on DEED’s website. You can see a list of the top 30 jobs in demand now in Minnesota on CareerForceMN.com.