Minnesota's Labor Force Grows for Fourth Straight Month

St. Paul – Minnesota’s labor force growth continues to accelerate with more than 9,000 people entering the labor market in June – the fourth month in a row with positive growth and the largest monthly gain in three years.

With 9,017 new people in the job market, Minnesota’s labor force participation rate increased two-tenths of a percentage point to 68.4%, compared to 62.6% nationally. Minnesota’s unemployment rate remained steady at 2.9% in June. Nationally, the unemployment rate ticked down a tenth of a percent to 3.6%.

Minnesota lost 4,300 jobs in the last month on a seasonally adjusted basis, and the state’s private sector lost 6,500 jobs. Looking at job growth over the year, both Minnesota and the U.S. as a whole are up 2.4%.

“More workers mean more good news for Minnesota. Our economy is strong with low unemployment, a growing labor force and recognition as one of the top five states in the nation for business,” said DEED Commissioner Matt Varilek. “While job growth didn’t continue this month, the long term trend remains strong: out of the past 12 months, Minnesota has posted job gains in nine of them.”

Most of June’s job losses came from the Leisure and Hospitality supersector, which shed 5,300 positions on a seasonally adjusted basis. After an atypical surge in hiring to meet high consumer demand coming out of the COVID-19 pandemic, the sector’s employment is showing signs of returning to a more sustainable level. Despite this month’s job loses, the supersector has created more than 14,200 jobs over the year.

Other notable details from today's jobs report include:

• Seven supersectors in Minnesota gained jobs on a seasonally adjusted basis since last month, including: Government, which gained 2,200 jobs and Trade, Transportation, and Utilities, which gained 1,200 jobs.

• In addition to Leisure and Hospitality, two supersectors lost jobs over the month: Professional & Business Services lost 2,500 jobs, and Manufacturing lost 2,300 jobs.

• All but one supersector posted positive over the year growth in Minnesota. Notable supersectors experienced annual growth that outpaced the nation: Education & Health Services led with the largest growth, up 24,090 jobs (up 4.5% vs. 4.2% nationally); Leisure & Hospitality continued posting big growth, up 14,212 jobs (5.2% vs. 4.7% nationally); and Government was up 12,788 jobs (up 3.1% vs. 2.8%).

• Every Metropolitan Statistical Area (MSA) in Minnesota gained jobs over the year, with the Minneapolis-St. Paul MSA leading with the highest number of total number of jobs added, up 45,105 positions, or 2.3%. The Mankato MSA is leading with the highest rate of job growth, up 3,576 positions, or 6.5%.

DEED offers many services to both job seekers and employers. People wanting to find work now or explore their career options – as well as employers looking for help finding workers – are encouraged to contact a CareerForce location near them or call 651-259-7500. CareerForce staff can connect job seekers with local employers who are hiring or help them determine if they are eligible for free training for an in-demand career.

Visit the DEED website to view state and national employment statistics, monthly jobs numbers and data. You can also find alternative measures of unemployment on the DEED website. In addition, see related articles about job growth and labor market changes in the latest issue of Minnesota Employment Trends. Access resources to help Minnesotans prepare for and find employment now at CareerForceMN.com/GoodJobsNow.

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