Minnesota unemployment rate in July remains stable at a record high of 1.8%


SIOUX FALLS, SD (KELO.com) – For the second month in a row, Minnesota’s unemployment rate remained at an all-time low of 1.8%.

That’s according to the Minnesota Department of Jobs and Economic Development.

During the month of July, Minnesota added a total of 19,100 jobs.

The sector that saw the biggest increase last month was the hospitality industry, which added 6,700 new employees.

Read the full report from the Department of Jobs and Economic Development below.

Strong job growth, more than double the national rate

The unemployment rate held steady at 1.8% in July 2022, matching the highest level since the measure was tracked in 1976, according to figures released today by the Minnesota Department of Jobs and Economic Development. (DEED). It was also the lowest state rate on record in the United States in June.

On a seasonally adjusted basis, Minnesota gained 19,100 jobs in July, up 0.7% from June, after adding 1,000 jobs (revised upwards) in June 2022. The private sector gained 14,600 jobs in July, up 0.6% from June.

Since January 2022, Minnesota’s seasonally adjusted employment has increased 2.3% while the United States has increased 1.9% since January 2022.

The United States gained 528,000 jobs in July, up 0.3% from June, as the private sector added 471,000 jobs, or 0.4% on a seasonally adjusted basis. The United States has now recovered all the jobs lost during the pandemic recession.

The size of Minnesota’s labor force shrank for the first time this year, falling by nearly 4,000 people due to slight declines in the number of employed and the number of unemployed. This resulted in a decrease of one tenth of a point in the activity rate, to 68.4%.

In 2022, Minnesota’s labor force growth has been strong but is slowing. Based on a three-month moving average, Minnesota’s labor force grew 0.3% in March-May, 0.2% in April-June and 0.1% in May-July. The US labor force grew by 0.1%, -0.1% and 0% over the same periods.

Nationally, the unemployment rate fell by a tenth of a point to 3.5% and the size of the labor force fell by 63,000 workers, as the participation rate fell by a tenth of a point to 62.1%. This was due to fewer employed and unemployed people nationwide.

“Our record unemployment rate held steady in July as Minnesotans continued to find opportunities in the economy,” said DEED Commissioner Steve Grove. “Despite a very tight labor market, employers are hiring at a rapid pace and continue to provide many opportunities for Minnesotans seeking well-paying jobs. For employers facing hiring challenges, we are continuing DEED’s Summer of Jobs campaign to highlight labor market opportunities and to help employers find workers in labor pools that they may have neglected before.

The Summer of Jobs campaign traveled to Owatonna last week, where Commissioner Grove, Governor Walz and Lieutenant Governor Flanagan met with business and community leaders to learn about challenges and solutions. hiring, as well as to focus on high-demand careers, from manufacturing to computer engineering. The Summer of Jobs campaign headed north to Thief River Falls yesterday, where Commissioner Grove attended the grand opening of Digi-Key’s mass distribution facility, met with executives and staff of Textron (Arctic Cat) and led a roundtable with area leaders around attracting and retaining workers in the northwest part of the state. The upcoming Summer of Jobs event will focus on the Office of New Americans, with an emphasis on connecting employers and workers from immigrant and refugee communities. This event is scheduled for the morning of August 30 in the metropolitan area; additional details will be announced soon.

The job recovery has not been consistent for all Minnesotans. In July, the labor force participation rate rose two-tenths of a point to 68.6% for white Minnesotans and three-tenths of a point to 80% for Hispanic Minnesotans. The labor force participation rate fell eight-tenths of a point to 68.1% for blacks in Minnesota. The unemployment rate held steady at 2.4% for white Minnesotans, fell a tenth to 7.3% for black Minnesotans and rose a tenth to 3.2% for Hispanic Minnesotans in July . (Numbers are based on Demecon 12-month rolling average data from the Current Population Survey.)

Unemployment rate by race or ethnicity, Minnesota, 12-month moving average

Note: These estimates differ from the official statewide estimate because they are calculated from 12 months of data rather than a single month.

In July, on a seasonally adjusted basis, Minnesota added construction jobs, up 1,100 jobs or 0.8%; Manufacturing up 2,600 jobs or 0.8%; Professional and business services up 3,900 jobs or 1%; Leisure & Hospitality up 6,700 jobs or 2.7%; and government up 4,500 jobs or 1.1%. Losses were recorded in financial activities down 1,000 jobs or 0.5%, and in other services down 800 jobs or 0.7%.

Job growth has been lumpy and uneven coming out of the recession. Translating seasonally adjusted employment change into a 3-month moving average, Minnesota added 10,800 jobs (0.4%) in March-May; 7,300 jobs (0.3%) in April-June and 9,200 jobs (0.3%) in May-July. Nationally, employment in the United States increased by 0.3% in each of these three periods.

During the year (OTY), Minnesota gained 78,519 payroll jobs, up 2.7%, on the year. The private sector gained 77,854 jobs, up 3.1% over the year.

Nine of the 11 supersectors posted positive year-on-year (OTY) employment growth, with a flat OTY in construction. Manufacturing, commerce, transportation and utilities, information, financial activities, professional and business services, education and health services, leisure and hospitality, other services and government have all recorded OTY growth. Among the supersectors:

  • Professional and Enterprise Services grew 4.9% OTY (18,664 jobs). Manufacturing posted 17,416 more jobs, up 5.5% OTY. Employment in non-durable goods increased by 5.0% (5,737 jobs) while that in durable goods increased by 5.7% (11,679 jobs). Manufacturing employment growth continued to be stronger than the nation, which was at 3.8% OTY in July.
  • Leisure & Hospitality continues to show the strongest OTY growth of any supersector, up 9.0% with the creation of 23,029 jobs. Arts, entertainment and recreation posted growth of 17.9% (8,248 jobs). Accommodation and food services increased by 7.1% (14,781 jobs). As this supersector recovers from the pandemic, OTY growth rates are slowing but still quite strong.

US employment rose 4.0% OTY with the private sector up 4.5% in July. All supersectors showed OTY gains.

In Minnesota and across the country, wages are still not keeping up with the rate of inflation. The average hourly wage of all workers in the private sector, at $34.43 in July, rose 5.6% over the year and 9.8% over two years. Nationally, private sector wages at $32.11 were up 5.3% on the year and 9.9% over two years. The CPI inflation index for all urban consumers rose 8.5% OTY in July 2022 and 14.2% over two years.

Employment and unemployment in Minnesota and the United States – July 2022

July ’21 – July ’22 Level change

July ’21- July ’22 % change

July 2022 Year-on-year (OTY) employment growth by industry sector (not seasonally adjusted)

Trade, transport. & Utilities

Professional and business services

Year-over-year employment change (OTY) in the metropolitan statistical area (MSA), not seasonally adjusted: July 2021 – July 2022

(* – June 2021 – June 2022 for border state MSAs due to data lag from MSAs outside of Minnesota.)

Metropolitan Statistical Area

Job change OTY (#, NSA)

OTY job change (%, NSA)

Minneapolis-St. Paul MN-WI MSA

Duluth-Superior MN-WI MSA

Fargo-Moorhead ND-MN MSA (June)

Grand Forks-East Grand Forks ND-MN MSA (June)

La Crosse-Onalaska WI-MN (June)

DEED is the state’s premier economic development agency, promoting recruitment, business expansion and retention, workforce development, international business, and community development. For more details on the agency and its services, visit the DEED websitethe JoinUsMn.com website or follow us on Twitter.

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