Minnesota’s Leisure, Hospitality Industries Suffer Significant Job Losses in December

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(KNSI) – After Minnesota’s mid-November COVID-19 case spike, the state lost jobs in both November and December, hitting the leisure and hospitality industry hardest.

According to the latest figures from the Minnesota Department of Employment and Economic Development, the state’s unemployment rate for December 2020 is a seasonally adjusted 4.4 percent. This is lower than the national average unemployment rate of 6.7 percent.

“Today’s employment data confirms what we’ve expected – the spike in cases in late fall had an impact on the economy,” DEED Commissioner Steve Grove said in a Friday press release. “The predictable loss of jobs that accompanied the sacrifice that businesses and workers had to make may turn out to be temporary, as just 10 percent of those surveyed said their job loss was permanent.”

In December, the state lost 49,800 jobs, most of which were in the private sector. The leisure and hospitality sector saw the greatest decline, losing 41,100 jobs, accounting for 82.5 percent of last month’s job losses.

From December 2019 to December 2020, Minnesota’s employment declined by 8 percent. The metro area with the most significant decline in employment is Duluth, with 8.3 percent fewer jobs over the past year. The St. Cloud metro area has fared a bit better, losing 4,699 jobs (a 4.2 percent decline).