Minnesota gained 4,400 jobs from July to August and the labor force grew for a sixth straight month, according to data released Tuesday by the Minnesota Department of Employment and Economic Development.
Minnesota and U.S. employment both grew 0.1% over the month, with Minnesota’s private sector job growth, up 4,800 jobs in August, outpacing national private sector job growth. With 3,225 people entering the labor force last month, the labor force participation rate held steady over the month at 68.5% and Minnesota’s unemployment rate ticked up one tenth of a point to 3.1% in August.
Minnesota’s job growth is likely constrained by its very tight labor market and the fact that a smaller percentage of people are not already engaged in the labor force in this state compared to the nation as a whole so there are fewer people to draw in off the sidelines. At 62.8%, the national labor force participation rate is nearly six percentage points lower than Minnesota’s.