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Minnesota’s job market holds steady in June despite slight job loss

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Minnesota’s labor market showed continued stability in June, according to new data released by the state’s Department of Employment and Economic Development (DEED).

The state’s unemployment rate held steady at 3.3%, and the labor force participation rate remained unchanged at 68.2%, even as the state shed 800 jobs over the month.

While job numbers were essentially flat, Minnesota saw more than 2,100 people enter the labor force in June — the 10th month of growth in the past year. Statewide unemployment and labor force participation rates continue to outperform national figures, with the U.S. unemployment rate at 4.1% and the national labor force participation rate at 62.3%.

“Minnesota’s labor market is in a favorable spot, with low unemployment and a growing labor force,” said DEED Commissioner Matt Varilek. “Despite the disruptions we’re seeing nationally, Minnesota employers continue to hire and workers are entering the labor force looking for jobs.”

Year-over-year job growth remains strong

Though June was relatively flat, Minnesota has added over 48,500 jobs over the past year — a 1.6% increase overall. That includes nearly 35,000 new private sector jobs, representing a 1.3% gain. Both rates outpace national job growth, which stood at 1.1% overall and 1.0% in the private sector.

June’s monthly job changes varied across industries. Five of the state’s 11 supersectors added jobs, led by:

  • Construction: +2,200 jobs (+1.6%)
  • Trade, Transportation & Utilities: +1,700 jobs (+0.3%)
  • Information: +200 jobs (+0.5%)

However, five other sectors experienced declines:

  • Manufacturing: –1,700 jobs (–0.5%)
  • Leisure & Hospitality: –1,300 jobs (–0.5%)
  • Other Services: –800 jobs (–0.7%)

Government employment saw a net gain of 1,500 jobs in June, though that growth came entirely from local government hiring. Employment at the state level dropped by 200 jobs, while federal jobs declined by 100.

“This is a very stable, steady and good report,” said Angelina Nguyen, DEED’s Labor Market Information director. “Many of our key indicators remained the same or continued to show improvement.”

Resources and further analysis

More detailed employment statistics and analysis can be found on the DEED website. The site includes monthly job numbers, alternative unemployment metrics, and in-depth articles from Minnesota Employment Trends. DEED also provides employment resources through CareerForceMN, including job search assistance, training opportunities, and career counseling.

Minnesota’s labor market continues to demonstrate resilience, with stable employment indicators and an expanding labor force — offering optimism despite national economic headwinds.

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