Minnesota Unemployment Rate Up in October

Minnesota's three-month streak of falling unemployment was broken in October when the rate climbed to 7.6 percent, although accompanying job gains left officials optimistic.

The updated figure was announced Thursday by the state Department of Employment and Economic Development. It compares with a seasonally adjusted 7.4 percent rate for September. The country's unemployment rate for October was 10.2 percent.

As the state's rate fell the last few months, officials cautioned that some of the drop was a result of out-of-work people giving up on job searches.

The latest update said employers in the state added a net 2,200 jobs, with the biggest gains coming in professional and business services. Most of those are classified as temporary hires.

Department Commissioner Dan McElroy said growth in temporary hiring is an indicator of economic recovery. He said it is similar to what experts saw the last time the country was pulling out of a prolonged economic slump.

"I wouldn't claim we are out of the woods or definitely experienced a turning of the corner," McElroy said on a conference call. "But you've got to start some place. This is a good place to start."

Six of 11 industry sectors the state tracks added jobs, ranging from education and health services to leisure and hospitality. Logging and mining employment was flat and losses were seen in sectors like construction and manufacturing.

Minnesota is still down 100,000 jobs from this point a year ago.