Minnesota labor force growth adds 9K new workers in June

Minnesota’s labor force continues to grow, with more than 9,000 people entering the labor market in June, according to the latest data provided by the Department of Employment and Economic Development (DEED).

Signifying the fourth month with positive growth – the largest monthly gain in three years – 9,017 new people entered 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 was 2.9% in June. Nationally, the unemployment rate remains at 3.6%.

"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 in a statement. "The long term trend remains strong: Out of the past 12 months, Minnesota has posted job gains in nine of them."

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

Most of June’s job losses came from the Leisure and Hospitality sector, which shed 5,300 positions on a seasonally adjusted basis, according to the data provided.

After a 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, the announcement said.

Other notable sectors include Education & Health Services leading with the largest growth, up 24,090 jobs, and Government adding 12,788 jobs.