Historically low unemployment continues in greater Minnesota cities in November

Greater Minnesota hubs continue to experience historically low unemployment while tight regional labor forces are largely unchanged, according to the latest state economic data.

That leaves businesses struggling to find workers to fill job vacancies, which economists say is stifling further economic growth.

"There's still more than three jobs available for every job seeker in the state," said Cameron Macht, a regional analyst with the Minnesota Department of Employment and Economic Development. "That is the highest ratio of any state in the U.S."

Outstate metropolitan areas all had slight unemployment rate increases in November. The Mankato-North Mankato Metropolitan Statistical Area, which includes Blue Earth and Nicollet counties, grew from 1.3% unemployment in October to 1.6% in November.

The Rochester area, which includes Dodge, Fillmore, Olmsted and Wabasha counties, tied at 1.6% unemployment in November, up from 1.4% in October. That's among the lowest unemployment rates in the nation, according to state officials.

By comparison, the Minneapolis-St. Paul Metropolitan Statistical Area, including 11 counties in Minnesota and St. Croix and Pierce counties in Wisconsin, had an unemployment rate at 1.9% last month, up from 1.7% in October.

In the St. Cloud area, including Stearns and Benton counties, unemployment was at 2.2% in November, up from 1.7% the previous month, while the Duluth metro area, including St. Louis, Carlton and Douglas (Wis.) counties, grew to 2.8% from 2.2%.

Rochester was the first metro area in Minnesota to surpass its pre-pandemic job levels earlier this year. St. Cloud and the Twin Cities have since surpassed their 2019 job numbers.

"We are starting to see a fair amount of strong recovery across the state," Macht said.

The Duluth area is still struggling to recover jobs lost during the pandemic. After adding nearly 2,000 jobs in October, the area lost more than 900 jobs in November. The labor force in the area has decreased by about 200 in the past month but is up nearly 500 from November 2021 — a boon for employers short on applicants.

Though Duluth continues to make gains — the area has more than 3,100 jobs compared to this time last year — Macht said Duluth hasn't recovered leisure and hospitality jobs, among other industries, as well as other parts of the state.

In St. Cloud, the area's labor force grew by about 100 last month after mostly shrinking throughout the year from a high of more than 113,000 people in January. The labor pool is still about 1,000 people stronger compared to November 2021, but economists say the slow labor growth will hamper economic growth in the area.

Greater Minnesota metro areas lost mining, logging and construction industry jobs last month because of the cold, but each area gained jobs in that industry compared to November 2021. Duluth and Rochester added almost 400 education and health services-related jobs in November, though Duluth also lost close to 500 leisure and hospitality jobs last month.