Minneapolis-St. Paul Market Report
Employment Losses, Heightened Construction Pace Pose Headwinds; Long-Term Prospects Keep Deal Flow Moving
Employment slowly returns, but still sizable deficit. The coronavirus hit metro employers hard with the loss of 272,300 positions in the February to April period and all sectors posting declines. The largest drop as expected was in the leisure and hospitality segment, in which hotels, restaurants and entertainment venues shed 108,300 workers. These cuts drove the unemployment rate to 10.4 percent in May, up from 2.8 percent just two months earlier. Since businesses started to reopen, almost 128,000 workers are back on the job as of September, reducing unemployment to 6.4 percent. Total employment, however, is still short 143,300 positions from the beginning of 2020. Nearly 50,000 of these slots are from the many restaurants, retailers and hotels that have yet to open to full capacity. As the pandemic lingers, more small firms could permanently shutter, and a growing number of jobs will likely not return.