State Unemployment Rate Falls to 2.8 Percent

ST PAUL – Minnesota’s seasonally adjusted unemployment rate fell to 2.8 percent in September, according to data released today by the Minnesota Department of Employment and Economic Development (DEED).

That is the lowest state unemployment rate since May 1999 and only three tenths of a point above the all-time low of 2.5 percent in both January and February 1999. The U.S. unemployment rate was 3.7 percent in September 2018.

Minnesota’s labor market lost 1,400 jobs last month. Additionally, August’s job loss was revised downward from 200 jobs lost to 2,500 jobs lost.

Over the past year, the state has added 37,339 jobs, a 1.3 percent growth rate. U.S. jobs are up 1.9 percent in the past year.

“While job declines are disappointing, they are to some extent a consequence of earlier economic strength,” said DEED Commissioner Shawntera Hardy. “This summer we saw large job gains, particularly in leisure and hospitality. These industries tend to eliminate some of those jobs at the end of the busy summer travel season.”

Trade, transportation and utilities led all sectors in September with a gain of 1,200 jobs, followed by government (up 1,100 jobs), financial activities (up 900 jobs), construction (up 300 jobs), and information and professional and business services (each up 200 jobs).

Sectors showing declines this month include; leisure and hospitality (down 1,700 jobs), manufacturing (down 1,600 jobs), other services (down 1,300 jobs) and education and health care (down 700 jobs).

All Metropolitan Statistical Areas registered unadjusted over-the-year growth. Mankato once again had the highest rate with 3.2 percent growth. Minneapolis-St. Paul had the second highest growth up 1.7 percent and St. Cloud came in third with a 1.6 percent growth rate. Duluth-Superior came in fourth with 0.8 percent growth and Rochester was last growing only 0.7 percent.

Follow the link to see the section of DEED’s website that catalogs alternative measures of unemployment.

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit DEED website or follow DEED on Twitter.

Seasonally adjusted Not seasonally adjusted

Unemployment Rate September 2018 August 2018 September 2018 September 2017

Minnesota

2.8 2.9 2.2 2.9

U.S.

3.7 3.9 3.6 4.1

Employment September 2018 August 2018 Sep. ‘17 – Sep. ‘18 Level Change Sep. ‘17- Sep. ‘18 % Change

Minnesota

2,972,800 2,974,200 37,339 1.3

U.S.

149,500,000 149,366,000 2,777,000 1.9

Over The Year Employment Growth By Industry Sector (NSA)

MN OTY Job Change MN OTY Growth Rate (%) US OTY Growth Rate (%)

Total Non-Farm Employment 37,339 1.3 1.9

Total Private 32,107 1.3 2.2

Logging and Mining -114 -1.7 4.4

Construction 5,514 4.2 5.0

Manufacturing 5,761 1.8 2.3

Trade, Transport. and Utilities 9,251 1.7 1.5

Information -63 -0.1 2.0

Financial Activities 1,888 1.0 1.5

Prof. and Business Services 3,845 1.0 1.6

Ed. and Health Services 1,542 0.3 2.3

Leisure and Hospitality 5,692 2.0 2.8

Other Services -1,209 -1.0 1.8

Government 5,232 1.2 0.4

Metropolitan Statistical Area OTY Employment Change (#, NSA) OTY Employment Change (%, NSA)

Minneapolis-St. Paul MN-WI MSA 33,342 1.7

Duluth-Superior MN-WI MSA 1,133 0.8

Rochester MSA 797 0.7

St. Cloud MSA 1,725 1.6

Mankato MSA 1,858 3.2