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Minnesota gains 1,700 jobs in May

Minnesota employers added 1,700 jobs in May, according to figures released today by the Minnesota Department of Employment and Economic Development (DEED).

The state remained ahead of the U.S. pace for employment growth in the past year, expanding by 0.3 percent or 7,170 jobs since May 2007.

The U.S. over-the-year growth rate was 0.1 percent during that period.

The state's seasonally adjusted unemployment rate climbed to 5.4 percent in May, an increase of 0.6 percent from the previous month but still behind the national rate of 5.5 percent for the month.

The unemployment rate grew in May even while the state was adding jobs because the two categories are derived from different statistical data.

The unemployment rate is a lagging indicator, reflecting the loss of nearly 12,000 jobs in Minnesota in April.

"Although the economy continues to present challenges, Minnesota is performing better in many sectors than the country as a whole," said DEED Commissioner Dan McElroy.

"The state is outpacing the nation in over-the-year growth in seven of 11 major industry sectors."

In the past year, Minnesota has added 11,770 jobs in Education and Health Services, 5,220 jobs in Government, 2,250 positions in Financial Activities, 2,120 in Professional and Business Services, 1,300 in Leisure and Hospitality, and 50 in Natural Resources and Mining.

Over-the-year job losses have occurred in Construction (down 6,790), Manufacturing (down 5,500), Trade, Transportation and Utilities (down 1,520), Other Services (down 1,270) and Information (down 460).

During May, the strongest sector in Minnesota was Leisure and Hospitality, which added 3,200 jobs, followed by Government, which gained 2,300 positions.

Statewide job losses in May were the largest in Professional and Business Services (down 2,300) and Manufacturing (down 2,100).

Employment in the Minneapolis-St. Paul Metropolitan Statistical Area has grown 0.4 percent in the past year with the addition of 7,990 jobs.

In other regions over the past year, Duluth-Superior grew 0.3 percent with 380 additional jobs, Rochester grew 1.2 percent with 1,270 jobs, St. Cloud grew 1.0 percent with 1,010 jobs, Fargo-Moorhead grew 1.0 percent with 1,220 jobs, and Grand Forks grew 2.2 percent with 1,170 jobs. These figures are not seasonally adjusted.

For additional information on the May employment information, please visit