Minnesota’s unemployment situation for November
Earlier today, the Minnesota Department of Employment and Economic Development (DEED) released employment numbers for November. According to the new data, Minnesota’s unemployment rate dropped to 4.4 percent in November, from 4.6 percent in October. Furthermore, the labor force participation rate increased by half a percentage point in November. This is quite an improvement from the September and October numbers, where unemployment fell due to people leaving the workforce.
Some concerns remain going forward, however.
For one, these numbers do not take into account the recent temporary restrictions that were imposed on restaurants, bars, and other in-person services after November 21. Employment data, therefore, could change once these start to get reflected in the job market.
Additionally, even though the number of unemployed people fell and the labor force participation slightly improved, Minnnesota experienced job losses due to a number of factors.
According to DEED,
Minnesota lost jobs in November on a seasonally adjusted basis for the first time since April as virus cases surged, businesses anticipated restrictions, and winter weather hit earlier than usual. Nonfarm employment fell by 12,600 jobs or 0.5%, erasing all but 2,600 of the 15,200 jobs gained in October. The private sector lost 10,300 jobs, down 0.4% and Government lost 2,300 jobs, down 0.6%.
These losses were concentrated in already heavily affected industries,
Losses were greatest in Leisure & Hospitality, down 10,400 jobs or 5%, followed by Information, down 600 or 1.5%, Construction, down 1,500 jobs or 1.2%, Manufacturing, down 1,900 jobs or 0.6% and Trade, Transportation & Utilities, down 1,200 or 0.2% in November.
Other supersectors like mining and logging experienced no change, and others like financial activities, professions, and business services, as well as education and health services, experienced job gains between October and November.
Over-the-year changes
When compared to 2019,
All supersectors continued to show over-the-year job loss in Minnesota and nationally. Over-the-year job losses were still greatest in Leisure & Hospitality, down 28.4% or 76,008 jobs, Information, down 15.1% or 6,990 jobs, Logging & Mining, down 14.0% or 920 jobs, Other Services, down 9.4% or 10,786 jobs and Government, down 7.3% or 32,048 jobs over the year. U.S. over-the-year job loss stood at 6.0% with the private sector down 6.1% in November, very little changed from October.
Minnesota and U.S. Employment and Unemployment – November 2020
|
|
Seasonally Adjusted |
Not Seasonally Adjusted |
||
|
Unemployment Rate |
November 2020 |
October 2020 |
November 2020 |
November 2019 |
|
Minnesota |
4.4% |
4.6% |
3.9% |
2.8% |
|
U.S. |
6.7% |
6.9% |
6.4% |
3.3% |
|
Employment |
November 2020 |
October 2020 |
November ’19- |
November ’19- % Change |
|
Minnesota |
2,782,800 |
2,795,400 |
-191,662 |
-6.4 |
|
U.S. |
142,629,000 |
142,384,000 |
-9,172,000 |
-6.0 |
Source: DEED
All in all, the Minnesota state economy has a long way to go for recovery, but we welcome every piece of good news along the way.