(KNSI) — Companies in Minnesota are cutting back on payroll.
In March, the private sector cut 6,100 jobs in the state. Even considering government employment, the Minnesota Department of Employment and Economic Development says 5,700 jobs were lost last month.
The results were at odds with the country as a whole. The United States recorded an increase of 236,000 jobs. DEED says the unemployment rate actually fell 0.2% in Minnesota to 2.8%, while the labor force participation rate remained flat. Commissioner Kevin McKinnon says it “might feel like a disconnect, [but] Data trends will even out over time.”
There are some bright spots, especially domestically. Saint Cloud continues to do well. DEED says the metro area has seen 3,287 people employed since March 2024, a change of 3.2%. Payroll is growing nearly twice as fast in central Minnesota as it is in the Twin Cities and Duluth.
Another encouraging sign, the agency says, is that wage growth has caught up to inflation. When real wages are negative, it means that people lose purchasing power, which puts pressure on the budgets of middle-class and low-income families.
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