St. Paul –Minnesota's labor force increased by more than 3,900 people in July, the fifth month in a row of growth, bumping the state's labor force participation rate up one-tenth of a point to 68.5%, compared to 62.6% nationally.

Minnesota's labor force has grown by more than 26,000 over the last five months, helping the state recover many of the workers it lost during the COVID-19 pandemic. Minnesota's growing labor force is only 19,000 people smaller than in February 2020 when the participation rate was at 69.9%.

Minnesota had a very small change in the number of jobs relative to overall employment of 3,016,000 – the state lost 400 jobs from June to July on a seasonally adjusted basis, with the state's private sector down 300 jobs. Minnesota's unemployment rate ticked up one-tenth of a point to 3.0% from June to July; nationally, the unemployment rate declined one-tenth of a point to 3.5%.

"Ongoing growth in our state's labor force is a positive sign as many Minnesota employers continue looking for the workers they need," said Minnesota Department of Employment and Economic Development (DEED) Commissioner Matt Varilek. "At DEED, we're working to expand our employment and training programs to help Minnesotans prepare for and find employment in high-demand fields on a path to family-sustaining wages."

"The increase in the state's unemployment rate this month is due in large part to new people joining the labor force and starting to look for work," said DEED Labor Market Information Office Director Angelina Nguyễn. "That said, we are keeping a close eye on job growth, as industries continue to adjust hiring levels following strong job growth during the initial years of pandemic employment recovery."

Other notable employment information released today:

• Over the month, four supersectors posted growth in Minnesota, led by Trade, Transportation & Utilities, which added 2,900 jobs; Education & Health Services which added 1,500 jobs; and Professional & Business Services, which added 500 jobs. All but two supersectors (Manufacturing and Financial Activities) have gained jobs over the year.
• Job losses over the month were concentrated in Leisure & Hospitality, which lost 3,800 jobs. This is the second-straight month of job losses for the sector, suggesting its post-pandemic job recovery is leveling off. However, jobs in this supersector have grown 4% over the year, leading the way among employers. Other supersectors losing jobs this month include Manufacturing, down 800 jobs; Information, down 400 jobs; Construction, down 300 jobs; and Government and Mining & Logging, down 100 jobs respectively.
• In Minnesota, average hourly wages for all private sector workers increased 83 cents to $36.18 from June to July. Over the year average hourly earnings increased $1.80, up 5.2%. The Consumer Price Index, a common measure of inflation, rose 3.2% over the year.
• 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 34,971 positions, or 1.8%. The Mankato MSA is leading with the highest rate of job growth, up 3,760 positions, or 6.9%.

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.