Minnesota’s unemployment rate remained steady at 4.0 percent on a seasonally adjusted basis in October. This compared to 4.9 percent nationally.
Minnesota’s labor force participation rate continued to sink, down two-tenths of a percentage point to 69.0 percent, as another 7,000 participants left the workforce. The persistence of these trends now means that Minnesota’s workforce is more than 40,000 individuals smaller than a year ago.
Minnesota’s over-the-year job gains slipped to 31,375 in October, up 1.1 percent from one year ago. Minnesota’s private sector job gains slipped to 28,421 jobs over the year, up 1.2 percent. Meanwhile, U.S. job gains slipped to 1.6 percent over the year and 1.7 percent for the private sector in October.
In Minnesota six of the 11 major sectors added jobs over the year with Construction up 3.5 percent, Education & Health Services up 2.2 percent, Financial Activities up 2.1 percent, Professional & Business Services up 1.8 percent, Trade, Transportation & Utilities up 1.1 percent, and Government up 0.7 percent in October.
Manufacturing continued in negative territory in October, down 0.4 percent, or 1,335 jobs over the year, as did Logging & Mining, down 14.5 percent or 989 jobs, and Information, down 1.6 percent or 837 jobs. Two other sectors moved into negative territory, Leisure & Hospitality, down 0.2 percent or 426 jobs, and Other Services, down 0.7 percent or 59 jobs. In the case of Leisure & Hospitality, this was the first negative over-the-year change since 2010.
Minnesota’s over the year growth rate is ahead of the nation in Construction and Manufacturing (smaller loss) and tied in Financial Services.
Minnesota experienced its largest monthly job loss in over three years, shedding 12,500 jobs in October on a seasonally adjusted basis. Private sector employers shed 12,700 jobs while Government added 200 jobs over the month.
All major sectors lost jobs in October with two exceptions: Financial Activities gained 1,100 jobs and Government gained 200 jobs.
The largest losses were in Leisure & Hospitality, where the arts, entertainment & recreation component was especially weak, and Trade, Transportation & Utilities, where retail trade was weaker than normal for this time of year.
Losses in Professional & Business Services were driven primarily by a decline in administrative & support services.
In Educational & Health Services the most significant weakness was in nursing & residential care facilities which has experienced three consecutive months of job losses.
Manufacturing shed jobs for the fourth month of the last six, with many industries contributing to the weakness. Food manufacturing and wood products stand out as relatively strong components of the sector.
Construction employment, down in September by 1,700 jobs (revised), dropped another 500 in October on a seasonally adjusted basis.
U.S. employment grew by 0.1 percent over the month again in October.