Minnesota’s seasonally adjusted unemployment rate fell to 8.6 percent in June down from 9.9 percent in May according to numbers released recently by the Minnesota Department of Employment and Economic Development (DEED).

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.

The seasonally adjusted employment gains in May were revised upward from 9,800 to 26,200.

“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 Steve Grove, DEED commissioner. “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.”

The June 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, which was up 35,300 (24.9 percent), with accommodation and food service gaining 31,400 of the jobs (26 percent) and arts, entertainment and recreation gaining 3,900 jobs (18.7 percent), followed by trade, transportation, and utilities 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 and social assistance (2.4 percent) and another 6,300 jobs added in education services (11.3 percent).

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

Only three super sectors saw seasonally adjusted job losses in June: construction lost 2,000 jobs, down 1.6 percent; information lost 200 jobs, down 0.5 percent; financial activities lost 1,500 jobs, down 0.8 percent. Financial activities losses were entirely in real estate, rental and leasing, which lost 1,700 jobs, down 5.5 percent.

The U.S. gained 4.8 million payroll jobs in June, up 3.6 percent with the private sector gaining 4.767 million, up 4.3 percent. Minnesota's unemployment rate continues to trend better than the national unemployment rate, which fell to 11.1 percent on a seasonally adjusted basis in June, which was down from 13.3 percent in May.