Minnesota employers added 6,300 jobs, and the state’s unemployment rate increased to 3.4%, in September, according to data released Thursday by the Minnesota Department of Employment and Economic Development.
The state’s unemployment rate compares with a national rate of 4.1%, and is up from 3.3% in August. The September job gains compare with 14,400 jobs added in August, the highest monthly level in two years.
The state’s labor force participation rate held steady for the third month in a row at 67.7%. This measures the number of people working or actively seeking work as a percentage of the working-age population and is used to calculate the headline jobless rate. The jobless rate can increase even when the state adds jobs because more people are entering the workforce.
“This was another strong month for Minnesota’s jobs market,” said DEED Commissioner Matt Varilek in a news release. “With ongoing job growth, low unemployment, wages outpacing inflation and high labor force participation ... the Minnesota economy is robust entering the final quarter of the year.”
Wage growth in Minnesota continued to outpace inflation in September. The average private sector hourly wage rose to $38 and year-over-year average hourly earnings increased $1.79, up 4.9% in the state — more than twice the national rate of inflation at 2.4%.
Job growth by sector in September was led by Government, up 3,600 jobs; Professional & Business Services, 2,300 jobs; Education & Health Services, 1,600 jobs, and Trade, Transportation and Utilities, 1,200 jobs.
Financial Activities lost 700 jobs; Information was down 600 jobs.
Amid alternate measures of unemployment, the broadest measure, called U-6, was 6.2%; this measure also factors in people who have dropped out of the labor force or otherwise have stopped looking for jobs, part-time or marginally employed people.
By race, Black unemployment was 5.3%; Hispanic, 3.7%; white, 2.8%; Asian, 2.2%, and Native American,11.9%.
— Pioneer Press
Consumers step up spending in September
Americans stepped up their purchases at retailers last month as low unemployment, steady pay gains and rising stock and home values helped sustain their willingness to spend despite higher prices.
Retail sales rose 0.4% from August to September, the Commerce Department said Thursday, up from 0.1% the previous month and the third straight increase. Online retailers, restaurants, and grocery stores all reported higher sales.
Sales at gas stations fell, because of lower pump prices. The retail sales figures aren’t adjusted for inflation, and the prices of goods fell slightly last month.
Clothing store purchases leapt 1.5% last month, though sales at electronics and furniture stores dropped.
ECB follows Fed, lowers rates again
The European Central Bank, which sets interest rates for the 20 countries that use the euro currency, does not expect the bloc to slide into recession as it cut borrowing costs once again Thursday in the wake of recent data showing inflation across the bloc falling to its lowest level in more than three years, and economic growth waning.
The bank’s rate-setting council lowered its benchmark rate from 3.5% to 3.25% — its third reduction since June — at a meeting in Llubljana, Slovenia, rather than its usual Frankfurt, Germany, headquarters, and said the “disinflationary process is well on track.”
According to revised figures on Thursday, inflation across the 20-country eurozone, sank to 1.7% in September, the first time in three years that it has been below the ECB’s target rate of 2%.
In a statement accompanying the decision, the ECB predicted an inflation pick-up in the coming months, before a return to its target in the course of next year.
— From news service