Minnesota lost 4,400 jobs in July, and the unemployment rate increased two-tenths of a percentage point to 3.5%, data from the state Department of Employment and Economic Development released Thursday show.
Most state labor force indicators saw mild signs of slowing in July, reflecting national trends. More than 1,700 Minnesotans left the labor force — and the labor force participation rate ticked down one-tenth of a percentage point to 68.1%. This measures the number of people working or actively seeking work as a percentage of the population.
But Minnesota’s over-the-year job growth was stronger than the nation as a whole, DEED said in its release Thursday. Over the past year, Minnesota gained 35,275 jobs, or 1.2%, with the private sector growing by almost 29,200 jobs, or 1.1%.
“We may now be seeing results of mass federal layoffs and funding interruptions, erratic tariffs and shrinking immigration,” said DEED Commissioner Matt Varilek in the release. “Even so, some of the favorable qualities about Minnesota’s labor market remained consistent in July, with low unemployment, significant wage growth and high labor force participation.”
Average hourly wages for the Minnesota private sector increased 99 cents to $40.09 in July over-the-month, while over-the-year average hourly earnings increased $2.44, up a notable 6.5%, DEED said. For the U.S., private sector wages decreased 4 cents over the month and grew 3.8% over the year.
Eight employment supersectors lost jobs, including Government (down 3,500 jobs, or 1.2%); Professional & Business Services (down 2,300 jobs, or 0.6%); and Trade, Transportation and Utilities (down 2,100 jobs, or 0.4%).
Most of these trends are shared by the United States as a whole: the nation’s unemployment rate is 4.2% and the labor force participation rate is 62.2%.
Of alternative measures of unemployment, the broadest, called the U-6, was flat at 7% in July but up from 5.9% a year ago, DEED said. This measure factors in people who have voluntarily left the labor force, such as stay-at-home parents, discouraged workers who have stopped seeking jobs, and part-time or otherwise marginally employed workers.
Related Articles
Business People: Coborn’s exec David Best tapped to lead Cub Foods
Working Strategies: AI and work, with advice for the future
U.S. jobs data can be seen as 99.9% correct
Business People: MPR adds two new members to board of trustees
Working Strategies: Preparing for launch post-graduation
Leave a Reply