Minnesota hoping to reverse manufacturing job losses after a September slide

Minnesota posted a third month of overall job growth in September but is targeting a reversal of declines in one major area this month: manufacturing.

In the past year, the state has lost nearly 8,500 manufacturing jobs, including 500 last month as one of four “supersectors” to lose ground, according to the Department of Employment and Economic Development (DEED). The department deemed manufacturing as a high-growth area — a “critical backbone” of the state’s economy, according to a DEED news release — with more than 93,000 job openings projected there through 2032.

Since October is Manufacturing Month, DEED is highlighting the industry by offering in-person and virtual factory tours to spark interest in future careers.

Angelina Nguyễn, labor market information director for DEED, said September’s manufacturing declines came mostly from durable goods: long-lasting products like cars, appliances and electronics. Jobs in manufacturing of nondurable goods — like food, clothing and gasoline — grew slightly, she said.

In all, Minnesota added 6,300 jobs in September, with DEED Commissioner Matt Varilek saying the state has posted net job growth in nine of the past 12 months.

“We see the economy in Minnesota remaining in a very strong place,” Varilek said.

Four of the state’s 11 supersectors added jobs: government (3,600 jobs), professional and business services (2,300 jobs), education and health services (1,600 jobs) and trade, transportation and utilities (1,200 jobs).

The private sector added 2,700 jobs for the month, which represented 43% of the state’s employment growth. And beyond manufacturing, financial services (700 jobs), information (600 jobs) and other services (600 jobs) all experienced declines.

In August, DEED reported the state added 14,400 jobs and called it the largest monthly employment gain in two years. But DEED has now revised that down to an addition of 12,000 jobs.

The U.S. added 254,000 jobs in September.

In the past year, Minnesota has added 37,566 jobs. Its unemployment rate of 3.4% is still below the national rate of 4.1%. Minnesota wage gains are also outpacing inflation, with the through-the-year average increasing $1.79, or nearly 5%. The average private sector hourly wage was at $38 in September.

But the state is still struggling with a workforce shortage despite its labor force participation holding steady for the third month at 67.7%, which DEED said is one of the highest in the country.