Minnesota's Unemployment Rate Falls to 8.6 Percent In June

MINNESOTA — Minnesota's seasonally adjusted unemployment rate fell to 8.6 percent in June down from 9.9 percent in May, according to numbers released today by the Minnesota Department of Employment and Economic Development.

Minnesota added 84,700 payroll jobs in June on a seasonally adjusted basis, up 3.2 percent, with the private sector adding 84,400 jobs, up 3.8 percent, during the month. Government added 300 jobs.

"Many Minnesotans who were laid off are beginning to return to work – which is a good sign. Yet our unemployment rate remains more than double what it was before the pandemic," said DEED Commissioner Steve Grove in a news release.

"To continue to see positive trends in our economy, we need to continue to be safe as we reopen our economy to avoid the volatility we're seeing in other states that are dialing back due to troubling COVID-19 outbreaks. That means wearing masks and practicing social distancing."

June's employment numbers capture the job situation immediately after the reopening of indoor service at restaurants and bars:

• Seasonally adjusted gains in June were led by leisure and hospitality, up 35,300 (24.9 percent).
• Accommodation and food service gained 31,400 of the jobs (26.0 percent)
• Arts, entertainment, and recreation gained 3,900 job (18.7 percent)
• Trade, transportation, and utilities were up 19,100 with most of the gains in retail trade, up 17,300 jobs (6.4 percent)
• Education and health services were up 16,900 jobs (3.4 percent) with 10,600 jobs added in health care & social assistance (2.4 percent) and another 6,300 jobs added in Education Services (11.3 percent)

The small supersector called other services (including personal services) added 11,300 for an over the month growth rate of 12.9 percent, the strongest growth rate of any supersector after leisure and hospitality.

The U.S. gained 4.800 million payroll jobs in June. Minnesota's unemployment rate continues to trend significantly better than the national unemployment rate, which fell to 11.1 percent on a seasonally adjusted basis in June, down from 13.3 percent in May.