(Source: Star Tribune, Minneapolis)

By Dee DePass, Star Tribune, Minneapolis
Mar. 20--Minnesota's unemployment rate jumped to 8.1 percent in February, the highest rate in 25 years.
Employers in the state shed 13,300 jobs last month, according to figures released Thursday by the Minnesota Department of Employment and Economic Development (DEED).
DEED Commissioner Dan McElroy pointed out that the pace of job losses in Minnesota is slowing but noted that Minnesota and the country are now shedding jobs at nearly the same rate. Minnesota lost about 3.2 percent of its jobs in the past year, while the nation lost 3.1 percent.
Nevertheless, the February job losses in Minnesota were fewer than the recently revised January figure of 18,500 jobs lost. Nationwide, employers cut 651,000 jobs in February.
"The global recession has touched nearly all business sectors here and elsewhere in the country," McElroy said. "But we saw some signs of improvement in Minnesota in February, including a slowdown in the number of jobs lost and a slightly better labor force participation rate. ... It's not good news, but it's less bad news than we expected."
Research firm Global Insight forecasts the national unemployment rate to hit 10.4 percent in 2010. State officials have not projected how high Minnesota's unemployment rate could go.
The modern high, 9 percent, was in November 1982, when more than 195,000 Minnesotans were out of work. More Minnesotans -- 238,328 -- were looking for work in February, but the state also has 718,294 more people working than it did in 1982.
Nine years ago, Minnesota's unemployment rate was 2.5 percent.
Minnesota's manufacturing sector reported the largest job losses last month, shedding 5,100 positions. Business services dropped 4,200 jobs, while the retail, trade, transportation and utilities sector lost 2,700 jobs. Construction lost 1,400 jobs, hotel and leisure 900, information services 700 and financial services 600.
McElroy said he expects construction employment to begin to perk up with the return of warm weather and introduction of federal stimulus money.
About $7 million in stimulus funds to help job seekers find employment will trickle into the state over the next 18 months. Funds released to date have already added 15 job-coaching positions in some of Minnesota's 47 Workforce Centers. Another 45 state jobs will be added shortly, McElroy said, noting that the state's various nonprofit and county "partners" are expected to add even more job-counseling workers.