Minnesota lost nearly 50,000 jobs last month when renewed business restrictions on restaurants, bars, and gyms took force.
It was the second straight month that the state had lost more jobs than it added since April, according to data released today by the Minnesota Department of Employment and Economic Development (DEED).
Leisure and hospitality accounted for the lion’s share of the losses with a decline of 41,100 jobs. Those businesses restrictions were eased earlier this month.
“Today’s employment data confirms what we’ve expected — the spike in cases in late fall had an impact on the economy,” DEED Commissioner Steve Grove said in a statement. “The predictable loss of jobs that accompanied the sacrifice that businesses and workers had to make may turn out to be temporary, as just 10% of those surveyed said their job loss was permanent.”
The state lost 49,800 jobs in December and a revised 15,500 jobs in November. Together, those losses erased all of the job gains that had been made from August through October.
Minnesota has now regained about 36% of jobs it lost earlier this year due to the pandemic, which is down from October when the state had recovered about 53% of jobs.
In addition, the state’s unemployment rate in December came in at 4.4%, slightly slower than the 4.5% for November, a figure that was slightly revised upward.
But as in some previous months, the decline in the jobless rate in Minnesota was entirely due to people leaving the labor force. In December, 15,488 stopped looking for work or stopped working as the toll of the pandemic has continued to put strains on families juggling child care and virtual schooling as well as on people trying to lessen their exposure to the virus.
The U.S. unemployment rate remained steady last month at 6.7%.
Kavita Kumar • 612-673-4113 Twitter: @kavitakumar