May 21--The Minnesota unemployment rate dropped to 8.1 percent in April as employers cut 9,500 jobs. That was an improvement over March, when employers cut 18,900 workers to push the jobless rate to 8.2 percent, a rate not seen since May 1983.

The U.S. rate for April was 8.9 percent.

The results, released today by the Minnesota Department of Employment and Economic Development, were welcomed by some as a sign that the economic recovery might finally be kicking into gear.

Over the past year, Minnesota has lost 90,200 jobs, or 3.3 percent of its jobs, compared with a loss nationwide of 5.2 million jobs, or 3.8 percent.

While April's figures signified some slowing in the rise of laid-off workers, workforce centers and job coaches around the state remained very busy as fresh and old job seekers struggled to find work and improve their job searching skills. At the Minneapolis Workforce Center on Lake Street Wednesday, all the computers remained in use right up until closing time.

State officials noted that the state's unemployment rate is again trailing that of the nation.

In April, U.S. unemployment hit 8.9 percent. While that rate suggests a slowing in the pace of layoffs nationally, many economists still expect the nation's unemployment rate to reach or surpass 10 percent by 2010. According to the Department of Labor, about 13.7 million Americans are out of work.

However, in a signal the job picture may be stabilizing, U.S. initial claims for unemployment insurance fell by 12,000 to 631,000 for the week ended May 16. The four-week average fell by 3,500 claims to 628,500.

Economists said the declines might be the result of several actions just beginning to feather through the economy. They cited the stimulus package, tax cuts, rising consumer spending, strengthening commodity prices, and the recent improvements seen in the stock market.

"These 'green shoots' offer a glimmer of hope moving into the latter stages of 2009 and into 2010," said Daniel Meckstroth, chief economist for Manufacturers Alliance/MAPI.

In the manufacturing sector, which has been bleeding jobs for quite some time because of shrinking workforces at Chrysler, General Motors, Ford, 3M, Hutchinson Technology and others due to dwindling demand, industry experts see hope.

"We are in a severe global recession where manufacturing is taking the brunt of the decline. Fortunately, we are starting to see signs of economic conditions beginning to stabilize," Meckstroth said.

However, "the eventual recovery will be sluggish due to continued deleveraging by consumers as they move away from excessive debt and to greater savings. Lagging improvement in the job market and persistently high unemployment rates will restrain the pace of the recovery," Meckstroth said. "There are nonetheless inklings of a future firming economy."

Dee DePass --612-673-7725

-----

To see more of the Star Tribune, or to subscribe to the newspaper, go to http://www.startribune.com/.

Copyright (c) 2009, Star Tribune, Minneapolis

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:GM, NYSE:MMM, NASDAQ-NMS:HTCH,

A service of YellowBrix, Inc.