MN Wages Aren't Keeping Up With Rate Of Inflation: State Economists

MINNEAPOLIS — Despite historically low unemployment, state economists are warning that in Minnesota and across the nation, wages are not keeping up with the rate of inflation.

In Minnesota, the average hourly wages for all private sector workers were at $34.21 in June, up 5.2 percent from a year ago, officials said. But the inflation index rose 9 percent during the same time period.

Due to record inflation, prices on pantry staples such as meats, poultry, fish, and eggs are up more than 13 percent from this time last year. Gas prices in June were up 65 percent over last year.

Persistent inflation is a political problem for President Joe Biden, and a financial problem for many Americans, especially those on fixed incomes who are making tough choices at the grocery store and gas pump.

State Republicans, including Republican gubernatorial candidate Dr. Scott Jensen and his running mate — Matt Birk — are hoping to make it a key campaign issue locally.

Unemployment numbers

Minnesota's unemployment rate dropped once again in June, falling to an all-time low of 1.8 percent, according to the state office of Employment and Economic Development.

The previous record low was in the early months of 1999 when Minnesota's employment rate was at 2.5 percent.

Meanwhile, the state's labor force participation rate increased by a tenth of a point to 68.5 percent.

The nationwide unemployment rate remained at 3.6 percent in June for a fourth-straight month.