Minnesota added 4,100 jobs in December and the state’s unemployment rate decreased two-tenths of a percentage point to 3.3%, the state Department of Employment and Economic Development said Thursday.
The state’s labor force grew by 3,300 jobseekers, according to DEED. Minnesota has added jobs for six straight months and 10 months out of the last 12.
Nationally, the unemployment rate declined one-tenth of a percentage point to 4.1%. The state’s labor force participation rate remained steady at 67.8%, as did the national rate of 62.5%. This measures the percentage of the working-age population that is either working or actively seeking work, and is used to compile the headline unemployment rate.
“Employers continue to create good-paying jobs, and more Minnesotans are looking for work this month — two positive indicators for Minnesota’s economy,” said DEED Commissioner Matt Varilek. “Minnesota is also seeing high wages, surging exports and high-profile business expansions in key industries around the state. Our economy has momentum, and we’re planning to keep it going in 2025 through targeted workforce development investments and ongoing support for businesses looking to launch, expand and create jobs all over Minnesota.”
Over the year, nearly 10,000 Minnesotans joined the labor force. In that time, Minnesota gained nearly 37,500 payroll jobs, up 1.3% compared to 1.4% nationally. The private sector gained 17,302 jobs, up 0.7%, compared to 1.3% nationally.
Job gains in December were led by two sectors: Education and Health Services (up 5,100 jobs) and Government (up 4,300 jobs). Overall, Minnesota’s private sector lost 200 jobs over the month.
Average hourly wages for private sector workers continue to grow. Over the year, average hourly earnings increased $1.98, up 5.4%, compared to national growth of 4.6% and an inflation rate of 2.9%.
Of alternative measures of unemployment, the broadest, called the U-6, increased to 6.4% in December from 6.3% in November. This measure factors in people who have voluntarily left the labor force, such as stay-at-home parents, discouraged workers who have stopped seeking jobs, and part-time or otherwise marginally employed workers.
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