(KNSI) – The latest unemployment numbers in Minnesota show the most new hires since March. The Minnesota Department of Employment and Economic Development says the state gained 14,500 jobs, with 8,700 in the private sector. The unemployment rate stands at 3.9%. That’s up 0.5% in July on a seasonally adjusted basis. DEED says it’s the most significant gains since March for total employment and the largest since May for private sector employment.
“It’s really good news to have a month with such solid job gains, especially in areas like leisure and hospitality, which is one of the industries that was hit hardest during the recession. It just shows that there are a tremendous amount of job opportunities available for people out in the labor market,” said DEED Assitant Director of Labor and Market Information Office Cameron Macht.
He says the gains in leisure and hospitality have been driven by a strong tourism season. Macht says vacationing wasn’t the only thing driving employment.
“We also saw a lot of growth in local government. And in educational services, a lot of schools that did extra activities throughout the summer months and so kept people on. The other good news is that we see a pretty strong manufacturing industry, and that’s particularly true in the St. Cloud area. And then it’s also been a really good construction season.”
Compared to other Minnesota metro areas, St. Cloud had the least number of jobs created, but Macht says that’s because St. Cloud wasn’t as hurt by the pandemic’s recession compared to other areas. He says St. Cloud’s job market declined by about 11% compared to the 13% for the rest of the state. He says metro areas were the hardest hit because they had the highest concentrations of employment in industries like leisure and hospitality and retail trade, and other services.
“So actually, if you look overall, St. Cloud is relatively closer to its pre-pandemic employment levels in the state as a whole. That you know, the St. Cloud economy is in a good spot in terms of recovery,” said Macht.
He says many employers were having trouble filling openings before the outbreak of COVID 19.
“There was an extremely tight labor market in the state even before the pandemic ever hit. Really over the last three years, we were consistently showing that there was less than one available job seeker for every job. So employers already had a tough time finding workers. I think that’s only been exacerbated during this pandemic.”
He says the wave of infections and the surge in cases due to the delta variant is keeping people out of the workforce. Macht says childcare concerns are also an issue, but he thinks more people will rejoin the workforce when school begins. Macht says employers offering hiring bonuses have been seeing more success filling jobs.
Over the month from June to July in Minnesota, eight supersectors gained jobs and three lost jobs on a seasonally adjusted basis.
Gains were in Leisure & Hospitality, up 7,700 jobs or 3.4%; Government, up 5,800 jobs or 1.4%; Manufacturing, up 2,700 jobs or 0.9%; Construction, up 900 jobs or 0.7%; Information, up 600 jobs or 1.5%, Financial Activities, up 500 jobs or 0.3%; Mining & Logging, up 200 jobs or 3.2%; and Other Services, up 100 jobs or 0.1%.
Losses were in Trade, Transportation & Utilities, down 2,600 jobs (0.5%); Education & Health Services, down 1,200 jobs (0.2%); and Professional & Business Services, down 200 jobs (0.1%) (primarily Temp Help). Losses in Trade, Transportation & Utilities were spread across all three sectors with the largest losses in Transportation, Warehousing & Utilities. Losses in Education & Health Services were all in Health Care & Social Assistance, down 1,300 jobs.
FOLLOW US FOR INSTANT UPDATES!
FOLLOW US FOR INSTANT UPDATES!