Minnesota down 3,100 jobs in August, unemployment rate at 1.9%

ST. PAUL -- Minnesota dropped a net 3,100 jobs in August, on a seasonally adjusted basis, and the state unemployment rate ticked up one-tenth of a percentage point to 1.9%, the state Department of Employment and Economic Development reported Thursday. This compares with a U.S. unemployment rate of 3.7% in August.

The report noted that August employment was down 0.1% from July, which saw an increase of 17,100 jobs — a downward revision by 2,000 jobs from what was previously reported. Minnesota’s labor force participation rate — measuring the amount of people working or actively seeking work — dropped two-tenths of a percentage point to 68.2%, DEED said.

DEED said the private sector lost 5,900 jobs in August, down 0.2% and the government sector added 2,800 up 0.7%.

The U.S. gained 315,000 jobs in August, up 0.2% from July, with the private sector adding 308,000 jobs, up 0.2% on a seasonally adjusted basis.

“We saw a pause in our job growth in August, amidst an otherwise record-setting year for Minnesota’s economy,” said DEED Commissioner Steve Grove in a news release. “Despite the fluctuations we’ve seen in the global economy, Minnesota’s resiliency remains strong. Our number one focus continues to be on connecting job seekers and businesses during a time of opportunity for Minnesota’s labor market.”

DEED said it has engaged in outreach around the state through its Summer of Jobs campaign, showcasing jobs available in Minnesota, and highlighting labor pools that employers often overlook, such as immigrant communities, young people, retirees returning to the workforce, people with disabilities or those recently released from correctional facilities.

Thursday’s report also noted that average hourly wages for private sector workers rose 24 cents in August to $34.62. Over the year, average hourly earnings have risen $1.90, up 5.8%.