Minnesota’s unemployment rate increased one tenth of one percentage point to 3.9 percent on a seasonally adjusted basis in December. Minnesota’s labor force ticked up by 3,071in December after seven consecutive months of declines. The labor force participation rate also ticked up one tenth of a percentage point to 68.9 percent.
The national unemployment rate ticked up one-tenth of one percentage point to 4.7 percent in December.
Annual job gains in Minnesota totaled 37,102 in December over the year, for an annual growth rate of 1.3 percent. Minnesota’s private sector added 36,125 jobs over the year, up 1.5 percent. Meanwhile, U.S. job growth ticked down to 1.4 percent and 1.5 percent for the private sector over the year in December.
Education & Health Care gained the most jobs, up 18,595 over the year, followed by Trade, Transportation & Utilities, up 8,963, Professional & Business Services, up 8,313 and Construction, up 7,414.
Construction, Education & Health Services and Trade, Transportation & Utilities led their national counterparts in annual job growth in December.
Five major sectors lost jobs over the year: Leisure & Hospitality lost 5,934 jobs, Manufacturing lost 1,934 jobs, Information lost 1,138 jobs, Other Services lost 437 jobs, and Logging & Mining lost 337 jobs over the year.
Minnesota gained 11,900 jobs over the month in December on a seasonally adjusted basis. Private sector employers added 8,200 jobs while Government added 3,700 jobs over the month. This is on top of an upward revision to November’s job count of 7,700, bringing the seasonally adjusted over the month job gain to 12,700 in November.
Seven major sectors gained jobs in December including Government. Construction added another 3,500 jobs during the month with all major components contributing to the sector’s strength. Education & Health Services, up 2,800 saw particular strength in ambulatory services. Professional & Business Services was up 2,200 jobs. Trade, Transportation & Utilities, up 900, benefited from a very strong hiring season at retailers across the state, producing the largest annual employment increase at this peak time of year since 1997. Financial Activities added 700 jobs, and Manufacturing added 400 jobs with durable goods up 1,200 but nondurable goods down 800 jobs over the month.
On the downside, Leisure & Hospitality shed 1,800 jobs, while Other Services shed 400 and Information shed 100 jobs.
U.S. employment grew by 0.1 percent over the month again in December.