St. Paul, MN – Minnesota's employment level, unemployment rate and labor force indicators show mild signs of slowing in July, reflecting national trends. But Minnesota's over-the-year job growth was stronger than the nation as a whole, according to new data from the Department of Employment and Economic Development (DEED).

Minnesota lost 4,400 jobs over-the-month in July, and the unemployment rate increased two-tenths of a percentage point to 3.5%. More than 1,700 Minnesotans left the labor force – and the labor force participation rate ticked down one-tenth of a percentage point to 68.1%.

Despite these shifts, Minnesota experienced slightly faster job growth than U.S. employment over the year. Minnesota gained 35,275 jobs, or 1.2%, with the private sector growing by almost 29,200 jobs, or 1.1% – a bit faster than the U.S. as a whole (0.9% and 1.0%, respectively).

"We may now be seeing results of mass federal layoffs and funding interruptions, erratic tariffs and shrinking immigration," said DEED Commissioner Matt Varilek. "Even so, some of the favorable qualities about Minnesota's labor market remained consistent in July, with low unemployment, significant wage growth and high labor force participation."

Average hourly wages for Minnesota private sector workers increased 99 cents to $40.09 in July over-the-month, while over-the-year average hourly earnings increased $2.44, up a notable 6.5%. For the U.S., private sector wages decreased 4 cents over the month and grew 3.8% over the year. The CPI inflation index for all urban consumers rose 2.7% over the year in July.

Over the month, two supersectors added jobs, led by a gain in Education and Health Services (up 5,400 jobs, or 0.9%) and growth in Construction (up 1,200 jobs, or 0.9%).

Eight supersectors lost jobs, including Government (down 3,500 jobs, or 1.2%); Professional & Business Services (down 2,300 jobs, or 0.6%); and Trade, Transportation and Utilities (down 2,100 jobs, or 0.4%).

"There are some signs of the job market slowing down but Minnesota's economy is still stable," said Angelina Nguyen, DEED Labor Market Information Director. "Some of our key indicators trended down, such as labor force size and unemployment – but others are consistent with previous months, such as steady over-the-year job growth and very strong wage growth."

Most of these trends are shared by the United States as a whole: the nation's unemployment rate is 4.2% and the labor force participation rate is 62.2%.

Visit the DEED website to view full state and national employment statistics, monthly jobs numbers and further analysis of this month's data.. You can also find alternative measures of unemployment. In addition, find related articles about job growth and labor market changes in the latest issue of Minnesota Employment Trends. Access resources to help Minnesotans prepare for and find employment now at CareerForceMN.