Workers Returning to Labor Force as Economy Strengthens

(KNSI) – Workers are streaming back into the labor force in Minnesota.

Economists tend to see that as a vote of confidence in the job market as it shows people have heard there are opportunities and are looking to take advantage. Department of Employment and Economic Development Commissioner Kevin McKinnon says, “A growing labor force is the latest sign of strength for Minnesota’s economy.”

Employers added 7,700 jobs in May but the unemployment rate actually ticked up to 2.9 percent because the overall number of people searching for work jumped by 8,700 in the month. Minnesota’s labor force participation rate is well above the national average at 68.2% but we’re still about 32,000 workers shy of what we saw prepandemic in the state.

DEED says Mankato is the best-performing metro area, followed by Rochester. McKinnon says the labor force growth is a welcome sight for companies. “Employers constantly tell us that they need more workers to fill their open roles. Now, we’ve seen back-to-back months during which more workers are pursuing jobs around the state. This is great news for Minnesota workers and employers, and we will work hard to make sure this trend continues.”

More applicants mean an easing of labor costs. Salaries and wages jumped by only 2% in May compared to the same month in 2022.

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