Understanding Minnesota's December Job Losses And Gains

Job growth was flat, and the state's unemployment rate went up one-tenth of a point to 4.1%, according to data released Thursday by the Minnesota Department of Employment and Economic Development.

The loss of jobs in the private sector (-1,700 jobs) almost exactly matched the job gains in the local government sector (+1,700) in December. The labor force increased by over 2,100 people, and the labor force participation rate stayed at 68.2% over the month.

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Not surprisingly, the largest job losses in December were in the construction industry (-9,900 jobs) and Trade, Transportation, and Utilities (-400 jobs) as winter rolled into the state and construction projects came to an end. Business and Professional Services (+3,700) and Manufacturing (+2,200) led all sectors in adding jobs in December.

Overall, the state added jobs year over year, but the average work week fell by a little more than a half hour to 32.3 hours per week. The labor participation rate stayed steady at 68.2%.

DEED Commissioner Matt Varilek said the political and economic certainty nationally will start to play a role in reports moving forward.

While our unemployment rate remains low by historical standards, its gradual upward rise continues a trend we've seen over several months. Chaos and uncertainty associated with the federal government shutdown, erratic tariffs, and changes to national immigration policy were already weighing on Minnesota's economy, and it's hard to imagine this month's unprecedented federal actions in Minnesota will be anything but harmful in economic terms.

Find the report from the Minnesota Department of Employment and Economic Development here.