Regional Rates of Recovery
Minnesota's economic recovery continues throughout the summer with new jobs being added across the state. The combination of a tight labor market and consistent job growth has led to record low unemployment rates in several regions, with our monthly blogs exploring population and labor force changes, industry employment trends, and projections.
Central Minnesota was home to just under 735,000 people in 2021, comprising almost 13% of the state's total population. The region welcomed a 7.4% increase in population over the past 11 years, primarily due to rapid gains in EDR 7W, which is home to the growing Greater St. Cloud area. Central Minnesota was the second fastest growing region of the state, accounting for 12.5% of the state's population growth from 2010 to 2021.
At 1.8%, the state of Minnesota set a new record for lowest unemployment rate in June and July. It was not just the lowest rate in state history, it was also the lowest rate any state has ever reported! Unemployment rates have also reached historic lows in Northeast Minnesota, with the regional rate dropping to 2.7% in July 2022, following record lows of 2.4% and 2.5% in April and May of 2022.
DEED's recent release of the first quarter 2022 Quarterly Census of Employment and Wages (QCEW) provides our first look into how Northwest Minnesota is faring by industry two years after the onset of the COVID-19 pandemic. While the region is still down compared to 2020, total employment gained ground compared to the first quarter of 2021, adding 2,172 jobs over the past year, or 1.1% growth.
Of the six planning regions in the state, Southeast Minnesota continues to have the lowest unemployment rate, and has since April. According to historical LAUS data, the region's rate has been below 3.0% in 13 of the past 15 months, including nine months when it has been below 2.5% and five of the last 10 months when the rate has been 2.0% or lower, including two straight months at 1.4% in April and May of 2022.
The Southwest region suffered a labor force decline of 5% from 2019 to 2021, compared to a statewide decline of 3.5%. While this isn't good news for the region, many places are in the same position. It's not solely a Southwest Minnesota issue; it's a demographic issue that is happening in several regions across the state and nation. Unfortunately, the losses in Southwest means employers have fewer workers available now then they've had access to in more than two decades.
Freshly updated employment projections showcase anticipated growth in the Seven-County Twin Cities Metro Area. More specifically, the Metro Area's total employment is projected to increase by 6.2% between 2020 and 2030, leading all other regional planning areas in Minnesota for growth. Due to the severe job losses suffered during the pandemic recession, some of this growth is still related to recovery, but the region is also expected to see rapid employment growth in the future.
Please reach out to your regional analyst if you or your staff would be interested in having a customized LMI training session. We would be happy to accommodate your training requests, either on LMI Data Tools or local economic conditions!
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