Minnesota Businesses Cut Payrolls by 5,900 In August

(KNSI) – Minnesota’s labor market took a step back in August.

The state lost over 3,000 jobs, which was foreshadowed in July as an increasing number of people said they had given up looking for work. For August, the private sector culled 5,900 jobs, partially offset by government hiring. Minnesota’s Department of Employment and Economic Development also revised down July’s employment gains by 2,000.

Commissioner Steve Grove says, “Our number one focus continues to be on connecting job seekers and businesses during a time of opportunity for Minnesota’s labor market.” The comment comes after two consecutive months of declining labor force participation.

Minnesota’s rate is at 68.2%, still well above the national average but a sliding number indicates that job seekers are becoming discouraged as open positions become less plentiful and businesses tighten their belts in a slowing economy.

A dropping labor force participation rate is a net positive for the unemployment rate. The calculation requires someone to have actively applied or interviewed for a position within the past four weeks to be counted in the figure. The overall result when factoring in all data points is a rise in Minnesota’s jobless rate to 1.9 percent.

The Saint Cloud Metropolitan Area has added 2,767 jobs in the past twelve months. Still growing at 2.6%, but the rate of improvement is declining compared to marks seen earlier this year.

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