Labor Demographics

Monthly Unemployment Rate

The seasonally adjusted unemployment rate held steady at 4.6 percent in August, in line with the national rate which also held steady at 4.6 percent.

Both the labor force participation rate as well as the employment to population ratio fell once again. The state's labor force participation rate fell another three-tenths of a percentage point to 72.4 percent, its lowest rate since early 1989, while the employment to population ratio fell from 69.4 to 69.1 percent in Minnesota.

The same trends were evident at the national level with both the labor force participation rate as well as the employment to population ratio down in August.

Source: Local Area Unemployment Statistics, DEED and BLS

Industrial Sector Highlights

The state held steady in August, gaining 100 jobs on a seasonally adjusted basis, but employment shifts by industrial sector tell more of the story. The service producing sector gained 4,000 jobs while the goods-producing sector lost 3,900 jobs. Job gaining sectors were led by Education & Health Services, Trade, Transportation & Utilities, and Leisure & Hospitality. Declines were greatest in Government, Manufacturing, and Construction.

All major areas within Education & Health Services continue to perform well with the sector adding 13,900 jobs in the last five months in Minnesota.

In other sectors added jobs this month, retail trade showed strength, boosting Trade, Transportation & Utilities with the addition of 1,500 jobs in August. On the other hand, transportation & warehousing continued to be a drag on the sector with the loss of 600 jobs. Job growth in Leisure and Hospitality was driven by eating and drinking places this month.

On the down side, Manufacturing lost jobs for the third month in a row, down a total of 4,200 jobs over the last three months. Losses have been concentrated in durable goods manufacturing, especially wood products and transportation equipment. Bright spots continue to be in navigational, measuring, electromedical & control devices and miscellaneous manufacturing, which includes medical equipment & supplies.

In other sectors, Government lost jobs for the second month in a row, primarily in state education and local non-education. Construction continued to slide, mirroring the declining housing market, with the greatest losses in residential construction.

Source: Current Employment Statistics, DEED and BLS.

Unemployment Insurance (UI) Claims

During August, Minnesota's statewide total of 17,301 initial claims was 1,353 (8.5 percent) higher than August of last year. Most of the increase came from the construction industry, affected by the storms this year and by the low demand for new construction. On a seasonally adjusted basis, the adjusted total of 24,579 initial claims is 1,429 higher than July's total, and 1,657 higher than a year ago.

Source: Unemployment Insurance Program , DEED.

Job Vacancies

Job vacancies fell 6.3 percent from one year ago, to 60,170, during second quarter 2007. Over the year declines were largest in food preparation and serving, sales and related, and production occupations with corresponding declines in the Accommodation, Retail Trade and Manufacturing industries. The largest increase in job vacancies was in computer and mathematical, and healthcare support occupations.

The strongest demand for workers based on the hiring demand index and the number of vacancies was found in computer and mathematical, healthcare practitioners and technical, healthcare support, and sales and related occupations.

About 35,150 open positions, or 58 percent, were located in the Twin Cities seven-county metro area. The remaining 25,020 job vacancies were in Greater Minnesota.

Overall, we estimate that there were 2.2 unemployed workers for each job vacancy statewide. One year ago, there were approximately 1.7 unemployed people for each vacancy statewide.

Source: Minnesota Job Vacancy Survey, DEED.

Labor Market Index

The Minnesota Labor Market Index has stalled out over the last few months after having surged during the first few months of 2007. May's 139.2 reading was virtually the same as April's 139.1 and just short of March's 139.4. Minnesota's adjusted wage and salary employment increased in May and seasonally adjusted weekly initial unemployment claims drop slightly but adjusted average weekly manufacturing hours inched down slowing the index's advancement. The U.S. index rebounded in May increasing 0.6 percent as adjusted average weekly initial unemployment claims at the national level declined noticeably. Minnesota's index was 0.9 percent higher than last May's while the nation index was up 2.5 percent from a year ago.