Minnesota Job Growth Beats National Rate: Report

ST. PAUL, MN — Minnesota's job market grew significantly faster than the nation's over the past year, according to new figures released Thursday by the Minnesota Department of Employment and Economic Development.

The state added 44,092 jobs over the year through July, a 1.5 percent increase that far outpaced the national growth rate of 0.2 percent, DEED said. Minnesota's private sector also grew 1.5 percent over the year, compared with 0.5 percent nationally.

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Minnesota's unemployment rate dropped to 4.3 percent in July, down one tenth of a percentage point from the previous month. The national unemployment rate also fell one tenth of a point, to 4.1 percent.

The strong yearly numbers came alongside a slower month. Minnesota lost 1,900 nonfarm jobs in July, a 0.1 percent decline on a seasonally adjusted basis, ending three consecutive months in which the state outpaced national job growth. The state's private sector lost 800 jobs over the month, essentially flat. Nationally, nonfarm employment fell by 23,000 jobs, also close to flat, while the private sector added 30,000 jobs.

Minnesota's labor force shrank by 4,013 people over the month, a 0.1 percent decrease. The state's labor force participation rate ticked down to 66.9 percent, still among the highest in the nation. Nationally, the labor force fell by 264,000 people and the participation rate slipped to 61.4 percent.

"Despite a number of headwinds, Minnesota employers have added more than 44,000 jobs over the year, with growth across a broad range of industries," DEED Commissioner Matt Varilek said in a statement. "While monthly numbers can fluctuate, Minnesota's strong year-over-year growth shows the resilience of our diverse economy."

Angelina Nguyen, DEED's labor market information director, said eight of the state's 11 major industry sectors added jobs over the year. "The July numbers show some cooling over the month, but the longer-term picture remains considerably stronger," Nguyen said, adding that declining labor force participation and wage growth remain trends DEED is watching closely.

Full state and national employment statistics are available on the DEED website.