Minnesota jobless rate holds at 3.7 percent in February

Job fair
Cheryl Browning, right, with the FDIC, talks with University of Wisconsin-River Falls students, including, from left, Kao Vang and Mao Khang, during the Minnesota State University Job and Internship Fair in Brooklyn Center Feb. 6, 2015.
Jeffrey Thompson | MPR News 2015

Updated 12:40 p.m. | Posted 10:21 a.m.

Minnesota's unemployment rate held steady at a seasonally adjusted 3.7 percent in February as employers added 9,000 jobs. The state's one-year job growth, however, still lags the nation, state economic officials said Thursday.

The state gained 42,137 new jobs in the past year, up 1.5 percent. U.S. job growth during that period was 1.9 percent, the Minnesota Department of Employment and Economic Development said Thursday as it released the data.

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The department noted the U.S. unemployment rate was at 4.9 percent for February, significantly higher than Minnesota. It was the fourth consecutive month that Minnesota's jobless rate came in at 3.7 percent.

Beyond the basic numbers, state officials noted the percentage of working-age Minnesotans who have or want jobs has hit nearly 71 percent.

The tightening labor market, however, hasn't been paying off as well as workers might hope, said DEED economist Steve Hine.

"Wage increases still aren't strong enough to translate into any significant real gains in terms of pay," he said.

Minnesota's education and health services led the way in February with 4,900 new jobs. Other industries that gained jobs were trade, transportation and utilities (up 3,600), construction (up 3,200), financial activities (up 1,400) and information (up 300).

Sectors losing jobs in February include: business and professional services (down 1,600), leisure and hospitality (down 1,000), government (down 1,000), other services (down 500), manufacturing (down 200), and logging and mining (down 100).