Minnesota March jobless rate holds at 3.7%; businesses cut 2,900 jobs

Minnesota's unemployment rate held steady in March at a seasonally adjusted 3.7 percent, but employers cut jobs in the month and the state's year-over-year rate of job growth continued to lag the nation.

March marked the fifth consecutive month the state's jobless rate came in at 3.7 percent, compared to a 5 percent U.S. unemployment rate. But the state labor market shed 2,900 jobs in March, while gains in February were revised downward by 300 jobs, the Minnesota Department of Employment and Economic Development said in a statement Thursday.

Over the past year, the state has gained 35,940 jobs, a growth rate of 1.3 percent. The U.S. job growth rate during that period was 2 percent.

The survey the unemployment rate is based on found some encouraging signs. More Minnesotans were paid to work in March. And more people were encouraged enough about their job prospects to look for work.

"While job losses and gains vary from month to month, the long-term trend points to steady and consistent growth in the state labor market," DEED Commissioner Katie Clark Sieben said in a statement.

Over the past year, education and health services led all sectors with 16,801 new jobs. That was followed by construction (up 5,276), trade, transportation and utilities (up 4,685), leisure and hospitality (up 4,414), financial activities (up 3,959). Two sectors lost jobs over the past year: logging and mining (down 1,391) and information (down 1,122).