Minnesota’s unemployment rate fell to 8.6% in June, down from a record-high 9.9% in May, as more businesses reopened and some employees returned to work.
The state added 84,700 jobs last month, a 3.2% increase, with some of the biggest gains in areas that initially saw the biggest hits from the pandemic such as leisure and hospitality, accommodation and food services, retail and health services. The numbers were released Thursday by the Minnesota Department of Employment and Economic Development.
“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,” DEED Commissioner Steve Grove said in a statement. “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 employment numbers reflect a snapshot taken the week that restaurants and bars were able to reopen for indoor service at limited capacities in mid-June.
While most sectors saw job gains, three sectors showed modest job losses last month: construction, information and financial activities.
The jobs numbers for May were also revised upward to show an addition of 26,200 jobs, instead of 9,800 jobs. The amended number took into account the fact that the survey was taken before some businesses had reopened later in the month.
About 843,000 Minnesotans have filed for unemployment benefits since mid-March. More than 400,000 of them continue to make weekly unemployment claims as of this month.
Stimulus checks and enhanced federal benefits have helped cushion the blow for many of those who have lost work. But the additional $600 in weekly payments authorized through the federal CARES Act is set to expire at the end of this month.
For Minnesotans, next week — or the week ending July 25 — will be the last time they will receive that payment unless the program is extended by the federal government.
“This additional weekly payment has provided critical support to hundreds of thousands of Minnesotans whose employment has been impacted by the COVID-19 pandemic,” Grove said. “We know that this continues to be an exceptionally difficult time, and the loss of the additional $600 will only make life more challenging for families across our state.”
Unemployed workers will continue to receive their other unemployment payments.