St. Paul, MN – Employment and the potential workforce in Minnesota were little changed during the month. The state lost a small number of jobs and saw a slightly smaller potential workforce in July, according to data from the Minnesota Department of Employment and Economic Development (DEED).

Minnesota’s unemployment rate rose to 3.2% as employers cut 1,100 jobs in July, unchanged from the previous month. The labor force fell by 2,200 people during the month. Minnesota’s unemployment rate is still below the national rate of 4.3%, which also rose this month, and the state’s labor force participation rate (67.8%) remains among the highest in the country.

More than 29,200 wage jobs were created in Minnesota during the year. According to the latest data from the Bureau of Labor Statistics, Minnesota employers had more than 169,000 job openings in May, an increase from the previous month.

“Despite the month-to-month fluctuations, Minnesota’s economy remains strong. Businesses report they continue to plan to hire, we are seeing dozens of business expansions that will create thousands of jobs, and DEED is working hard to grow the state’s workforce as our new work programs accept and graduate participants,” said DEED Commissioner Matt Varilek“We are also closely monitoring macroeconomic factors that could drive business growth and hiring in Minnesota, including interest rate decisions by the Federal Reserve.”

Three of Minnesota’s 11 supersectors added jobs last month, led by education and health care with 4,300 new jobs. Six supersectors lost jobs, including trade, transportation and utilities with 2,400 jobs, leisure and hospitality with 2,000 jobs and financial services with 1,100 jobs.

Wages for Minnesota workers remain strong. The average hourly wage for private sector workers rose $1.42, or 3.9%, for the year. The Consumer Price Index (CPI), a common measure of inflation, rose 2.9% for the year, meaning wages rose faster than inflation.

Over the past six months, DEED has released nearly $35 million in funding for three new job training programs designed to connect more Minnesotans to the workforce and help them find careers that pay family-sustaining wages. These include:

• $20 million for Drive for 5, a project to prepare more Minnesotans for in-demand jobs in five job categories: technology, skilled trades, health care, manufacturing and education;
• 12 million US dollars provide employment and training services to populations that have been overlooked in the past and often face numerous barriers to employment; and
• $2.7 million for Clean Economy Equitable Workforce to train Black, Indigenous, and People of Color (BIPOC) and low-income Minnesotans for well-paying union jobs in high-demand construction, clean energy, and energy efficiency sectors.