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nemployment rate drops to 6.5 percent

Fri, May 27th, 2011
Posted in State of Minnesota

State loses 5,200 jobs in April

ST. PAUL - The Minnesota unemployment rate fell 0.1 percent to a seasonally adjusted 6.5 percent in April, according to figures released today by the Minnesota Department of Employment and Economic Development (DEED). The U.S. rate was 9 percent in April.

The agency said jobs declined by 5,200 during the month, largely related to the loss of 5,700 positions in the construction sector. Part of the monthly decline was offset by a revision in the March employment figures, which improved from 2,800 jobs gained to 5,500 jobs gained.

"The loss of construction jobs followed two consecutive months of growth in that sector," said DEED Commissioner Mark Phillips. "Colder-than-normal temperatures in April might have been a factor, but next month's report will give us a better indication of whether that was the case."

Leisure and hospitality led all sectors in April, gaining 3,100 jobs. Other job gains occurred in professional and business services (up 2,600), education and health services (up 500), and logging and mining (up 200). Financial activities held steady.

Along with construction, job losses occurred in trade, transportation and utilities (down 2,800), other services (down 2,600), manufacturing (down 300), information (down 100) and government (down 100).

Over the past year, professional and business services led all sectors by gaining 8,300 jobs, followed by education and health services (up 7,900), manufacturing (up 5,000), logging and mining (up 400), and information (up 200).

Job losses occurred over the past year in construction (down 12,000), trade, transportation and utilities (down 2,300), government (down 2,200), leisure and hospitality (down 1,200), financial activities (down 1,100) and other services (down 800).

In the state Metropolitan Statistical Areas, job gains occurred in the past 12 months in the Rochester MSA (up 0.3 percent), while the Minneapolis-St. Paul MSA was flat. Job losses occurred in the Duluth-Superior MSA (down 0.7 percent), the Mankato MSA (down 0.4 percent) and the St. Cloud MSA (down 0.2 percent).

DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at www.PositivelyMinnesota.com. Follow us on Twitter at www.twitter.com/PositivelyMN.

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