Minnesota’s unemployment rate holds steady at four percent

Minnesota’s seasonally adjusted unemployment rate remained steady at 4.0 percent in June and the state’s labor force participation rate also remained level at 67.9 percent, according to numbers released today by the Minnesota Department of Employment and Economic Development (DEED).

Nationally, the unemployment rate rose one-tenth of a percentage point in June to 5.9 percent with labor force participation holding steady at 61.6 percent. 

Over the month, Minnesota lost 600 jobs on a seasonally adjusted basis. The private sector lost 3,100 jobs, down 0.1 percent. These losses are the first since December 2020 in Minnesota. Growth has been uneven from month to month coming out of the pandemic recession. Translating seasonally adjusted job change into a 3-month moving average series, which helps level out this unevenness, Minnesota added 15,400 jobs, up 0.6 percent, in Feb-April; 14,267, up 0.5 percent, in March-May; and 7,267, up 0.3 percent, in April-June, a strong growth pattern. Nationally, this compares to 0.4 percent growth in each of these three periods. 

“We know that our recovery from the pandemic will take time, both nationally and at the state level,” said DEED Commissioner Steve Grove. “The good news is there are lots of great opportunities in our economy right now, and we’re spending every day finding new ways to connect workers with jobs in the industries most in demand.” 

Based on 12-month moving averages, the unemployment rate for Black Minnesotans fell in June to 4.5 percent from 6.9 percent in May and for Latinx Minnesotans, it remained steady at 6.6 percent in June. White Minnesotans were at 4.9 percent in June, down from 5.1 percent in May.  

Over the month in June, the U.S. gained 850,000 jobs, up 0.6 percent, with the private sector up 662,000 jobs or 0.5 percent.  

Over the month from May to June in Minnesota, six supersectors lost jobs and five gained jobs on a seasonally adjusted basis.  

• Losses were in Education & Health Services, down 2,500 jobs or 0.5 percent; Financial Services, down 2,200 or 1.2 percent; Construction, down 2,100 or 1.6 percent; Leisure & Hospitality, down 500 or 0.2 percent; Manufacturing, down 300 or 0.1 percent; and Mining & Logging, down 100 or 1.6 percent.  
• Gains were in Trade, Transportation and Utilities, up 2,700 jobs or 0.5 percent, more than making up for the 2,400 jobs lost in May. Government gained 2,500 jobs in June, up 0.6 percent. Professional & Business Services gained 1,200 jobs, up 0.3 percent; Information gained 400 jobs, up 1.0 percent; and Other Services gained 300 jobs, up 0.3 percent. 

Minnesota lost 416,300 jobs from February through April 2020 and has since gained 245,800 jobs, or 59.0 percent of the jobs lost on a seasonally adjusted basis. The private sector has regained 60.6 percent of the jobs lost. This is down from last month due to the downward revision in May and the decrease of 600 jobs in June, seasonally adjusted. 

Over the year in June, Minnesota gained 173,827 payroll jobs, up 6.4 percent. The private sector gained 157,070 jobs, up 6.8 percent over the year in June. U.S. employment grew 5.8 percent over the year with the private sector up 6.4 percent in June. 

In Minnesota, nine supersectors gained jobs over the year, with Leisure & Hospitality, up 32 percent or 61,007 jobs; Education & Health Services, up 5.6 percent or 28,197 jobs; Professional & Business Services, up 7.3 percent or 25,394 jobs; Trade, Transportation & Utilities, up 25,105 jobs or 5.1 percent; Government, up 16,757 jobs or 4.2 percent; Other Services, up 11.1 percent or 10,575 jobs; Manufacturing, up 2.4 percent or 7,485 jobs; Construction, up 2 percent or 2,724 jobs; and Mining & Logging, up 18.2 percent or 1,007 jobs over the year. Both Financial Activities and Information showed over-the-year losses in Minnesota, down 3,040 (-1.6 percent) and 1,384 (-3.3 percent) respectively. Nationally, all supersectors showed gains over the year. 

Employment rose in June over the year in all Minnesota Metropolitan Statistical Areas. Growth was strongest in the Duluth-Superior and Rochester Metropolitan Statistical Areas. 

Minnesota and U.S. Employment and Unemployment – June 2021 

Minnesota and U.S. Over-the-Year (OTY) Employment Change, Not Seasonally Adjusted: June 2020-June 2021 

Metropolitan Statistical Area (MSA) Over-the-Year (OTY) Employment Change, Not Seasonally Adjusted: June 2020-June 2021