Minnesota’s labor markets are like rickrack: a pattern of strong months followed by slight declines. The state lost 1,900 jobs in May after a revised gain of 14,300 in April. The private sector lost 4,600 jobs during the month.

Employers in Minnesota have added just under 28,000 jobs over the past year, a growth rate of 1 percent. For more on the May numbers, go to the complete press release.

Annual job gains are at their lowest since March 2014, a month affected by the ‘polar vortex’ of that winter and spring. Other than that one month, May’s annual rate is at the lowest we’ve experienced since the growth rate was rebounding from the recession in December 2010.

Consider: our low unemployment rate and high rates of labor force participation and employment-to-population is just the tip of the workforce shortage iceberg moving into view.

Education and Health Services Employment Growth in Good Shape

If you’re in career decision-making mode, education and health services would be a fine place to start. The Bureau of Labor Statistics predicts that growth in this sector will be much quicker than the average for all jobs by 2024.

In Minnesota education and health services were sector-leading with 3,900 new jobs. Education and health services also gained the most jobs year-over-year with 18,533 new positions. Within health care, ambulatory services continues to add jobs, up 7.3% over the year, with hospitals and nursing and residential care facilities adding jobs but at a lesser rate (1.4% and 0.3% respectively).

Government (up 2,700) also gained jobs because state education cut back a little less than usual.

Points of Optimism

• The average workweek of private-sector employees increased to 34.3 hours – its highest reading since hitting an all-time record 34.8 hours last August. This was also the highest reading for a May on record.
• Private-sector average wage rates rose 17 cents to $27.07 in May, 5.0% higher than one year ago and the strongest rate of gain on record.
• Unemployment claims increased by 477 on a seasonally adjusted basis but remained below 18,000 for the third consecutive month, an accomplishment last seen in mid-2000.