Minnesota's official unemployment rate tells a lot about the share of the labor force who have untapped potential to offer. But it doesn’t tell us the whole story. We can learn more by looking at race, age, and gender, and by looking beyond the traditional unemployment rate. Please note that all data below are presented as 12-month moving averages.
Unemployment by race or ethnicity
When we break out unemployment rates by race, we find that some communities face greater challenges than others. Unemployment rates for Black or African American workers and Hispanic or Latino workers remain well above the statewide rate. Black and White unemployment rates have fallen compared to 12 months ago. Hispanic unemployment remains above its level of 12 months ago, but has decreased from 8.2 percent in September to 8.1 percent in October.
Minnesota unemployment rates by race or ethnicity as of October 2014:
Also see the American Community Survey for a broader selection of unemployment data by race or origin, including White, Black or African American, American Indian and Alaskan Native, Asian, and more. Note that the American Community Survey data are collected and calculated by a method which differs from the Current Population Survey numbers shown above.
Unemployment by age and gender
We also find differences when we break out rates by age or gender. The unemployment rate for teens continues to fall and is now at a nine-year low. Unemployment rates for women and men both continue to fall relative to 12 months ago.
Minnesota unemployment rates by age and gender as of October 2014:
Alternative measures of unemployment
Beyond these demographic differences, we can also learn more about Minnesota’s labor market by looking at alternative measures of unemployment defined by the U.S. Bureau of Labor Statistics.
Minnesota unemployment rates by alternative measures as of October 2014:
What do these measures mean?
The official unemployment measure, called U-3, is the share of the labor force aged 16 and over who, at the time of the monthly survey, have been unemployed for the past week and have looked for work sometime in the past four weeks.
But what about people who last looked for work a month ago or 12 months ago and decided there are no jobs available that fit their qualifications? These marginally attached “discouraged workers” reveal additional untapped potential and are included in a broader measure called U-4.
And what if we add all the other marginally attached workers, people who looked for work sometime in the past 12 months but, for other reasons, did not look in the past four weeks? These other marginally attached workers expand the count still further in the U-5 measure.
And finally, U-6 includes all of the above and adds people who are employed part-time but want full-time work.
Recent declines in unemployment mean that Minnesota’s economy is running closer to its full potential than before. But by looking at race, age, gender, and additional measures of unemployment, we can see where there is still more work to be done.
Note: Data above are presented as 12-month moving averages. Each monthly data point is an average of that month and the previous 11 months. Twelve-month moving averages are calculated differently than the official estimates of unemployment and should not be compared directly.