Minnesota Loses Jobs In December; Regions Outside Twin Cities Hardest Hit

(KNSI) – Minnesota lost jobs in December, snapping a 14-month winning streak.

The Department of Employment and Economic Development says the number of people on non-farm payrolls fell by 5,200 and the unemployment rate ticked up to 2.5%, continuing to climb from historic lows seen in late summer.

The St. Cloud metro area has added 1,758 jobs in the past year, a rate that is still positive but significantly slower than the pace early in 2022. The Twin Cities and Rochester continue to see robust employment growth but Greater Minnesota markets such as Duluth, Fargo-Moorhead, and Grand Forks are on the verge of seeing job losses compared to a year ago.

Metro areas that are mostly situated in another state are delayed in their reporting. DEED says the Grand Forks market had added only 400 jobs on a non-seasonally adjusted basis in November compared to the same time in 2021. That represents a percentage increase of just 0.7%. In Fargo-Moorhead, it’s even lower at 0.4%. LaCrosse-Onalaska comes in at 0.9%. Given the statewide struggles seen in December, all of those markets could be flirting with the breakeven point when the final 2022 data points come out in a month.

Higher interest rates have put a damper on the construction industry. Since December 2021, it has lost more jobs than any other sector. Leading the way were leisure and hospitality, education and health services, and manufacturing. Minnesota’s year-on-year job growth remains strong at nearly 92,000 new hires.

___