Minn. jobless rate steady at 3.8 percent; 1,900 jobs cut in May

Minnesota's jobless rate held steady in May at a seasonally adjusted 3.8 percent, but employers cut jobs and the state's year-over-year job growth continues to trail the nation.

Minnesota employers eliminated 1,900 jobs during the month after gaining a revised 14,300 jobs in April, the Minnesota Department of Employment and Economic Development said Thursday.

While the state's unemployment rate remains significantly below the nation's 4.7 percent rate, the nation as a whole has grown jobs faster than Minnesota the past 12 months. Employers in Minnesota have added 27,987 jobs over the past year, a growth rate of 1 percent compared to a 1.7 percent job growth rate nationally.

"Despite the decline in May, the state labor market remains healthy, with seven of the state's 11 major industrial sectors growing in the past year," DEED Commissioner Shawntera Hardy said in a statement.

Education and health services led all Minnesota sectors in May with 3,900 new jobs. Government and information services also gained jobs. Manufacturing, down 2,300 jobs in the month, led the declining sectors.

Year-over-year, education and health services lead the job sector gains with 18,533 new positions. Sectors that lost jobs in the past year include logging and mining (down 1,585), information (down 1,303) and manufacturing (down 218).