Unemployment rate stays at 3.7 percent, but MN employers cut jobs in January


The unemployment rate in Minnesota remained steady in January, but there were fewer jobs to go around as state employers eliminated 7,900 positions during the month.

The delayed January figures from the Minnesota Department of Employment and Economic Development showed the unemployment rate stood at a seasonally-adjusted 3.7 percent in January. The national unemployment rate was 5.7 percent.

The rate in December was also 3.7 percent (after being revised up from 3.6 percent), but the number of employed people in Minnesota has actually fallen, to 2.82 million in January compared to 2.83 million in December.

But what will be of more concern to state officials is the lack of new jobs being created.

The state lost 7,900 jobs in January, and over the past year there were 36,124 new jobs created. This represents growth of 1.3 percent, but is well down on the U.S. job growth rate of 2.4 percent in the same period.

Minnesota's unemployment rate could take a further hit in the coming months, given the news from Target on Tuesday that 1,700 jobs were being cut and 1,400 open positions scrapped.

Where are jobs being created and lost?

The DEED figures show most of the new jobs created in January came in the professional and business services industry, where 2,200 new positions opened up, followed by education and health services (+1,500), and leisure and hospitality (+200).

But jobs were lost in trade, transportation and utilities, which was down 6,000 positions, as well as construction (-1,700), information (-1,400), manufacturing (-1,100) and government (-900).

Mankato gained the most jobs during the month, with new positions rising by 2.1 percent, while job growth rose 1.7 percent in the Twin Cities.

The DEED website now includes a section that examines unemployment disparities based on race, age and gender, which confirms a report last week that showed the unemployment rate among black people is almost four times higher than white people in the state.

The data also shows the unemployment rate among 16 to 19-year-olds is significantly higher than for other adults.

Next Up

Judge Peter Cahill - March 8

Chauvin trial: Judge says jury selection can move forward as scheduled

Judge Cahill rejected the prosecution's motion to delay the start of jury selection while they wait to learn if a third-degree murder charge will be added against Chauvin.

chauvin courtroom

Everything you need to know as Derek Chauvin's trial is set to begin

Jury selection is scheduled to begin Monday, but could be delayed.

jack riebel

Restaurant community rallies around famed Twin Cities chef battling cancer

Jack Riebel, chef and owner of The Lexington, is starting a new aggressive treatment — his fourth in a year — in hopes of beating cancer.


Gopher women snubbed from NCAA hockey tournament

Fair decision or was the selection committee biased?


Some Carver Co. schools, businesses reduce activities amid outbreak of COVID variant

The Minnesota Department of Health announced a 'rapidly growing' outbreak on Friday.


2 men pulled from burning car after crash in Minneapolis

The two men are in "serious and critical condition" but are expected to survive.

All Energy Solar Residential Installation

End 'renting' from your utility company and go solar

A solar installation is one of the few home improvements that actually pays for itself.

Byron Buxton

Twins talking contract extension with Byron Buxton

The Twins are 88-38 over the past two seasons with Buxton in the lineup.