Minnesota on a job growth run; Olmsted County's unemployment rate hovers at 2.5%

Sep. 19—ROCHESTER — Minnesota's economy continues to hum, and with it, Olmsted County's.

The state gained 4,400 jobs from July to August, the sixth straight month that the labor force in Minnesota grew, according to the Minnesota Department of Employment and Economic Development in a report released Tuesday, Sept. 19, 2023.

Olmsted County has one of the lowest unemployment rates at 2.5%, according to the DEED website.

Minnesota's private sector grew by 4,800 jobs in August, outpacing the national private sector job growth rate, state officials said. Minnesota and U.S. employment both grew 0.1%.

More people joined the labor force last month, with an estimated 3,225 people either finding jobs or actively seeking work. The labor force participation rate held steady month-over-month at 68.5%, and Minnesota's unemployment rate ticked up one-tenth of a point to 3.1% from 3%.

It's a good situation for people looking for work and employers looking to hire, a DEED official said.

"More people are joining the workforce, and our continued labor force growth is great news for Minnesota employers, many of whom continue to look for the workers they need in our tight labor market," said DEED Commissioner Matt Varilek. "It's also great news for Minnesotans who are preparing for and finding employment."

Officials said that the state's job growth "is likely constrained" by a tight labor market, a situation that exists when job openings are plentiful but workers are scarce. Minnesota has fewer people to draw off the sidelines as compared to the national rate. At 62.8%, the national labor force participation rate is 6 percentage points lower than Minnesota's.

Other notable trends included in report:

* Education and health services gained 1,700 jobs on a seasonally adjusted basis from July to August. It was one of five sectors in Minnesota to see an increase in jobs. The others were construction (1,700 jobs), leisure and hospitality (2,600 jobs), manufacturing (400 jobs) and other services (600 jobs).

* Five sectors in the state lost jobs on a seasonally adjusted basis over the month: financial activities was down 500 jobs, government lost 400 jobs, information was down 200 jobs, professional and business services lost 1,000 jobs, and trade, transportation and utilities lost 500 jobs.