Skip to main content

Unemployment rate hit record 9.9 percent in Minnesota in May

The rate is now expected to improve with more businesses allowed to reopen.
waitress-2376728_1280

Minnesota's unemployment rate hit a seasonally adjusted record of 9.9 percent in May, the highest seen since modern records began in 1976.

The Minnesota Department of Employment and Economic Development released the figure on Thursday, saying it captures the job situation "immediately prior to the lifting of the Stay at Home order and the phased reopening of non-Critical Sector businesses in the state."

It stands to reason then that unemployment should drop in June given that more businesses have been allowed to reopen – including the loosening of restrictions for the hard-hit hospitality industry, with restaurants now allowed to open at 50 percent capacity.

Nonetheless, the figures highlight the major toll COVID-19 has taken on the state, with lockdowns imposed in mid-March to limit the spread of the virus.

Hospitalization, infection, and deaths rates have been slowing in recent weeks, suggesting the state may be over the worst for now, though epidemiologists have cautioned that there could be a second wave in the fall.

Despite the increase in the unemployment rate, Minnesota did see a 0.4 percent increase in payroll jobs, with 9,800 added in May.

The private sector added 27,500 jobs, while government jobs dropped 17,700.

The sectors that saw the largest increases were leisure and hospitality, up 13,800 jobs, followed by accommodation and food service with 11,900.

Sign up for our BREAKING NEWS newsletters

"Our economy is facing an unprecedented challenge, which these numbers reflect. Slight job increases this month are a positive sign, but the employment rebound will continue to vary greatly by sector," said DEED Commissioner Steve Grove.

"DEED is working with other state agencies, business and labor leaders and public health experts to get Minnesotans back to work as quickly and safely as possible."

Minnesota's unemployment rate is still better than the national rate, which in May was 13.3 percent.

In total, the number of unemployed people in Minnesota stood at 302,741, an increase of 35,770 compared to April.

Next Up

Screen Shot 2022-01-27 at 9.15.45 PM

Buckeyes crash the glass, fend off Gophers

E.J. Liddell dominated in the paint to help No. 16 Ohio State.

nicolas blouin flickr fire hose

Fire departments decry drivers running over hoses, endangering crews

It happened in two separate Northland cities this week.

All Energy Solar - Bringing Panels to Roof

All Energy Solar reaches growth milestones with higher goals yet for 2022

Minnesota solar company continues to thrive through building a strong workforce

Royal Canadian Mounted Police maintoba crossing crop

Authorities ID family found frozen to death at MN-Canada border

They're still trying to unravel how they got there and who might have helped them.

covid

Mayo Clinic specialist: 'The omicron surge is not over'

Experts expect a rapid decline over the next month followed a period of calm.

police lights

Charges: Man in stolen Jeep leads police on 110 mph chase

He crashed into a light post near the Capitol and then fled on foot, the complaint says.

kua dog go fund me

Puppy in back of stolen Audi found, reunited with owner

The 4 1/2-month-old bullmastiff had been missing more than a week.

Fuzzy Gerdes Flickr Franks Diner Kenosha

WI's best 'hole-in-the-wall' diner is Guy Fieri-approved

Come for the "garbage pile," stay for ... even more breakfast food.

FKISmwPWUAYZJW6

Minnesota's pre-pro women's soccer team unveils name, logo

The new name and look was unveiled after community owners voted on a winner.

fentanyl DEA

21 people charged in connection to drug trafficking in northern MN

Police say the organization sold more than 10 pounds of heroin and fentanyl in northern Minnesota.

Band Box Diner Courtney Mault Flickr

MN's 'best hole-in-the-wall diner' is, sadly, currently closed

MSN recently published its pick for best diner in each state.

Related

Minnesota's unemployment rate hits lowest level in 19 years

But there's also been a drop in the number of available jobs in the state.

blue-and-white-sorry-we-re-closed-wooden-signage-1171386

New data shows spike in unemployment rate, number of claims

Because part-time workers and those expecting a recall are not counted, the rate does not reflect the full impact on employment in Minnesota

Minnesota unemployment rate holds steady at 5.6 percent in May

The state jobless rate remained unchanged at 5.6 percent even as Minnesota employers shed 900 jobs in May, according to the state Department of Employment and Economic Development. The U.S. unemployment rate was 8.2 percent last month.