ST. CLOUD – The St. Cloud area saw a slight uptick in jobs last month but experts warn the region has a long way to go to reach pre-pandemic employment and labor force participation levels.
The St. Cloud Metropolitan Statistical Area, which includes Stearns and Benton counties, added about 1,150 jobs from January to February, according to state data released this week. That 1.1% growth is the second highest of any metro area in the state — following Duluth, which saw a rise of 1.8%.
In the same time frame, the unemployment rate in the St. Cloud area dropped from 5.5% to 5.2%, which is a typical shift between the months of January and February, according to local economist King Banaian.
But January's unemployment rate is a seven-year high for that month and February's rate is the highest since 2017. This year's rates are also a little more than a percentage point higher than rates in January and February of 2020 — the last months before the pandemic halted commerce and shuttered businesses.
Even more telling than unemployment rates are the year-over-year declines in labor force, according to Banaian, who is dean of the School of Public Affairs at St. Cloud State University.
"You could say, and many people do say, [unemployment rates are] an understatement of the number of people that are unemployed because you had all these people leave the labor force," he said.
In the St. Cloud area, the labor force declined by approximately 3% year-over-year in January and 2.5% year-over-year in February.
"I haven't seen a 3% drop in the labor force in a single year in most of the time I can remember," Banaian said. "It strikes me as jaw-droppingly large."