Minnesota’s Unemployment Rate Remained Above 4% In December

By Rilyn Eischens, the Minnesota Reformer

January 21, 2021

Minnesota’s unemployment rate was 4.4% in December, roughly the same as the rate in November as the COVID-19 pandemic continues to stress businesses and workers.

More Minnesotans left the workforce in December, bringing the state’s labor force participation rate down to 67.5% — the second-lowest rate in 40 years, according to the Minnesota Department of Employment and Economic Development.

The state also lost jobs in December for the second consecutive month. Minnesota was down 49,800 jobs — 1.8% — compared to November, eliminating the job gains in late summer, according to DEED.

People of color are still most affected by the economic downturn, with 5.5% of Black workers and 7.7% of Latino workers unemployed last month.

The state’s unemployment rate is in line with the national rate, which remained flat at 6.7% in December.

More than 1.2 million Minnesotans have applied for unemployment benefits since March. The number of applicants doesn’t match the unemployment rate because it includes people who may be back at work after receiving benefits. Workers can receive benefits if their hours have been cut or they’re furloughed, while the unemployment rate only counts people who are not working.

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..