Minnesota unemployment dips to 4.3% as state loses jobs

Minnesota's unemployment rate edged down slightly in July, even as the state lost jobs. This is according to a new report from the Minnesota Department of Employment and Economic Development which shows the state's seasonally-adjusted unemployment rate fell one-tenth of a percentage point to 4.3%. That means Minnesota has the 19th-highest unemployment rate among the states, a ranking it's held consistently for the past few months. On the national front, the unemployment rate also dropped – coming it at 4.1% in July. It wasn't all good news for Minnesota though, as the report also found job growth in the state was in the negative as the state lost 1,900 jobs. That was a drop of 0.1%. Despite that drop, state officials applauded Minnesota's job growth rate over the year of 1.5%, or 44,000. "While monthly numbers can fluctuate, Minnesota's strong year-over-year growth shows the resilience of our diverse economy," said DEED Commissioner Matt Varilek. "We remain focused on connecting Minnesotans with good jobs and helping employers find the workers they need to grow." The Walz administration continues to tout the job market in the North Star State, pointing to its recent ranking by CNBC as the third best state for jobs. Many found that ranking dubious – pointing to everything from Minnesota's population loss to continued high unemployment. "This ranking is completely bogus," said John Phelan, an economist with the Minnesota-based Center of the American Experiment. "These rankings … are not correlated in any meaningful way with what businesses actually do, such as start themselves or hire people." Still, Walz' office continues to cite the report. "The Walz-Flanagan administration has helped support more than 35,000 new businesses, nearly 30 percent wage growth, and record job creation, helping Minnesota rank as the third best state for jobs," it said in a recent statement. "Together, these efforts reflect an administration-wide commitment to strengthening Minnesota's business community and supporting growth across the state." The drop in Minnesota's unemployment rate comes after it climbed earlier this year to its highest level in roughly five years during federal immigration operations like Operation Metro Surge. Estimates cite more than $240 million in lost wages and more than $600 million in business losses due to those federal efforts. Just last week, Gov. Tim Walz met with small business owners to hear about the "lasting impacts" and ongoing recovery efforts. "Operation Metro Surge's impact on small businesses, workers, and local business districts is still being felt," Walz said. "We remain committed to supporting local businesses, encouraging Minnesotans to shop local, and continuing conversations through the Council on Recording the Truth of Operation Metro Surge and Operation PARRIS to uplift impacted business owners and communities."