47,000 Minnesotans Stopped Looking For Work In October, Jobless Rate Falls To 4.6%

From the Minnesota Reformer:

By Ricardo Lopez

November 19, 2020

Minnesota’s unemployment rate fell to a seasonally adjusted 4.6% in October, down from 5.9% the month before, largely because many people have stopped looking for work.

The Minnesota Department of Employment and Economic Development on Thursday reported that Minnesota employers added 13,200 jobs last month, while 47,018 people stopped looking for work.

Prior to the pandemic, Minnesota’s labor force participation rate was 70.2%, but it has declined to 67.4%, the result of an economic downturn.

“COVID has brought unprecedented challenges to Minnesotans and our businesses,” DEED Commissioner Steve Grove said in a statement. “Despite these challenges, companies in many fields are hiring.”

Employers in the trade, transportation and utilities sectors added 4,600 jobs last month, according to the report. Accommodation and food services added 3,800 jobs.

Unemployment rates based on race, however, were still disproportionate. Black Minnesotans have a jobless rate of 15.4%, while Latino Minnesotans have an unemployment rate of 9.6%, according to a six-month moving average. White Minnesotans, in comparison, had a jobless rate of 6.3%.

Gov. Tim Walz’s latest executive order closing indoor and outdoor dining, gyms and other places of public accommodation for four weeks threatens to put thousands more out of work as the state tries to curb the uncontrolled spread of COVID-19.

The Minnesota Reformer is an independent, nonprofit news organization dedicated to keeping Minnesotans informed and unearthing stories other outlets can’t or won’t tell..