Drop in Unemployment Attributed to Tightening Labor Market
St. Paul, MN (KROC-AM News) - State officials say a tightening labor market pushed Minnesota’s seasonally adjusted unemployment rate slightly lower last month even though Minnesota’s economy experienced a net loss of lost about 1700 jobs in October.
The latest jobs report from the Minnesota Department of Employment and Economic Development shows the state’s jobless rate slid a tenth of a point last month to 3.7-percent, which matched the unemployment rate from October 2014. In addition to the 1700 jobs lost last month, the report also revised the net job loss for September to 6900, which is about 1200 higher than the figure reported last month.
Over the past 12 months, Minnesota has seen a net gain of just under 24,000 jobs for a growth rate of 8-tenths of a percent, which is less than half of the national average.
“The October figures suggest that tightening labor markets are beginning to constrain employment growth in Minnesota,” said DEED Commissioner Katie Clark Sieben. “With more baby boomers retiring and leaving the workforce, we are seeing real impacts of the slowing labor growth.”
The report shows the Rochester Metropolitan Area has seen employment decline a tenth of a percent over the past year, which works out to a net loss of about 150 jobs.