State officials guardedly optimistic about new job numbers
Unemployment figures for May showed the seasonally adjusted unemployment rate for Minnesota lower than the national unemployment rate by a margin last seen in 2005.
State officials hope a trend line is developing.
“I think it’s too early to note that,” said Department of Employment and Economic Development (DEED) Commissioner Dan McElroy.
Although the state’s seasonally adjusted unemployment rate slightly increased in May from April to 8.2 percent, Minnesota’s unemployment picture is better than that seen nationally.
The national seasonally adjusted unemployment rate for May was 9.4 percent.
Still, the total number of unemployed workers in Minnesota rose by 3,700 over the past month to 242,000 — about 2.7 million Minnesota are employed.
In terms of employment sectors, education, health care, and government continue to show job gains — the 800 government jobs created in May are local government jobs, McElroy pointed out.
All other job sectors show job loss, with the largest declines seen in manufacturing which has lost 34,800 jobs and professional and business services, down 30,600 jobs over the year, according to DEED.
But construction in May did see 900 new jobs created — first month of growth in two years.
The new jobs are attributed to a surge in highway construction and strength in specialty trades, according to DEED.
Minnesota’s statewide unemployment insurance claims in May — 34,890 initial claims — is 79 percent higher than in May of last year.
But there were 300 fewer claims than in April.
McElroy believes it’s too early to judge the impact federal economic stimulus dollars are having in Minnesota.
