Minnesota’s seasonally adjusted unemployment rate fell to 7.7 percent in July, down from 8.6 percent in June, according to numbers released this week by the Minnesota Department of Employment and Economic Development (DEED).

Minnesota added 32,500 payroll jobs in July on a seasonally adjusted basis, up 1.2 percent over the month. The U.S. added 1.8 million jobs in July, up 1.3 percent. The U.S. unemployment rate is at 10.2 percent for July, down from 11.1 percent in June.

“We’re moving in the right direction, but job growth is slowing, a sign that this recovery will likely take some time,” said DEED Commissioner Steve Grove. “It’s important for Minnesotans to know that many employers are hiring now, and that resources are available to help people prepare for in-demand jobs through CareerForce.”

Some groups of Minnesotans have been more affected by unemployment than others during the pandemic. Based on six month moving averages (February to July 2020 data), the unemployment rate for Black Minnesotans is 15.3 percent in July, up 9 percentage points from 6.3 percent one year ago, in July 2019. For Hispanic Minnesotans, unemployment was 8.6 percent in July, up from 4.3 percent in July 2019. White Minnesotans have an unemployment rate of 6.3 percent in July, up from 3.1 percent one year ago.

Seasonally adjusted job gains in July were led by Leisure and Hospitality, up 17,200 (9.8 percent), with Accommodation and Food Service gaining 12,300 of the jobs (up 8.1 percent) and Arts, Entertainment, and Recreation gaining 4,900 jobs (up 20.4 percent), followed by Government with a gain of 6,200 (up 1.6 percent) mostly in Local Government and Education and Health Service, with a gain of 4,400 (up 0.9 percent), with Health Care and Social Assistance gaining 3,700 of those jobs (up 0.8 percent).

Four   lost jobs in July: Professional and Business Services lost 900 jobs, down 0.2 percent, Information also lost 900 jobs, down 2.2 percent, Construction lost 400 jobs, down 0.3percent and Mining and Logging lost 100 jobs, down 1.9 percent.

Over the year in July, Minnesota shed 256,062 payroll jobs, down 8.5 percent. The private sector shed 220,409 of those jobs, also down 8.5percent. All sectors continued to show over-the-year job losses.

Two supersectors showed strength in Minnesota compared to the nation in July. Trade, Transportation and Utilities was down 3 percent in Minnesota compared to 5.7 percent nationwide over the year. Once again, strength in this supersector was in retail trade with Minnesota down 0.6 percent compared to 5.5 percent nationwide, over the year. Professional and Business Services was down 4.7 percent in Minnesota compared to 6.7 percent nationwide, over the year. Minnesota’s strength in this supersector was in Administrative and Support and Waste Services, down 3.1 percent in Minnesota compared to 11.2 percent nationwide. Of special note is employment services (temp help), which was down 10 percent in Minnesota compared to 17.2 percent nationwide, over the year.

In Minnesota, the number of people unemployed dropped by 31,146 to 236,832 in July, while the number employed rose 9,579 to 2,855,710. The employment to population ration increased slightly over the month to 64 percent in July, compared to 55.1 percent nationally.

Employment fell in July over the year in all Minnesota Metropolitan Statistical Areas.

Visit the DEED website to see DEED’s alternative measures of unemployment. You can also find the monthly jobs numbers and unemployment data on DEED’s website. You can see a list of the top 30 jobs in demand now in Minnesota on CareerForceMN.com.

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more information about the agency and its services visit the DEED website or follow DEED on Twitter.

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