Opinion editor's note: Editorials represent the opinions of the Star Tribune Editorial Board, which operates independently from the newsroom.
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More jobs. More people. Minnesota's employment and population trends are going in the right direction, which should create cautious optimism going into 2024.
The data, derived from recent reports from the Department of Employment and Economic Development (DEED) as well as the U.S. Census Bureau, show stable, steady growth in both areas. In a credit to the state's employers and workers, Minnesota has added jobs for five months straight and 9,500 more from October to November. That's the largest increase since January. And the state gained 17,300 jobs over a three-month period, a 0.6% increase, compared with a 0.2% increase in the same time frame nationally.
November's state unemployment rate fell to 3.1%, impressively below the 3.7% national rate, as eight of 10 "supersectors" (as DEED deems them) saw growth, including trade, transportation and utilities (up 3,300 jobs); education and health services (up 2,700); government (up 1,100), and manufacturing (up 1,000).
But reflecting an enduring challenge to Minnesota employers and the state itself, the labor force actually decreased by 7,433 people in November, dropping Minnesota's participation rate to 68.3%. That's still well above the 62.8% national average, but below what's needed for most employers facing chronic labor shortages — a particularly acute condition in southern Minnesota, Angelina Nguyễn, DEED labor market information director, said during a virtual news conference last Thursday.
DEED will continue to roll out workforce development initiatives in 2024, Commissioner Matt Varilek said during the news conference, in which he also commented on the positive population growth of 23,615 people from July 2022 to July 2023. While the 0.4% increase isn't as high as some rapidly growing Sun Belt states — as well as neighboring North and South Dakota — it's better than the previous two years, and more in line with Minnesota's typical trend line.
Some of the increase came from post-pandemic stabilization of natural growth (births minus deaths), which accounted for 13,834 more Minnesotans, and even more from international migration, which added 14,575 new Minnesotans. But domestic out-migration — Minnesotans moving to other states — continued, albeit at a slower pace of 4,686.