Minnesota unemployment rate drops from December to January, per new report

In January, Minnesota’s unemployment rate dropped slightly compared with December, according to a new jobs report issued Thursday.

The Minnesota Department of Employment and Economic Development (DEED) stated in January, Minnesota gained 51,800 jobs, an increase of 1.9% on a seasonally-adjusted basis, replacing all but 1,000 of the jobs lost in December after recent revisions.

As a result, the unemployment rate dropped to 4.5% in January, down from a revised 4.7% in December. The national unemployment rate, meanwhile, fell to 6.3% in January, down from 6.7% in December, DEED reported.

However, DEED reported the pandemic’s effects continue to be felt most deeply by BIPOC (Black, Indigenous, people of color) workers.

According to DEED, based on 12-month moving averages, the unemployment rate for Black Minnesotans was 9.5% in January, up from 9.0% in December and up from 4.9% one year ago. The Latinx unemployment rate was 7.3% in January, which was the same as December, and up from 4.9% one year ago. The unemployment rate for white Minnesotans was at 5.8% in January, 5.6% in December and 3.0% a year ago.

"The recovery of over 51,000 jobs in January is a promising sign for Minnesota," DEED Commissioner Steve Grove said in a statement. "We have a lot of work ahead to grow our economy, and as this report shows, we must focus on those hit hardest by the pandemic – people of color, people with disabilities, lower wage workers, and small businesses."