Minnesota Unemployment fell in june as more businesses started reopening

According to the new numbers by the Minnesota  Department of Employment and Economic Development (DEED), unemployment in Minnesota went down between May and June. Minnesota unemployment fell from a record high of 9.9% in May to 8.6% in June. This is largely because many businesses reopened during the period and people were able to return to work.

Source: DEED

Most of the job gains have been concentrated in the sectors that were heavily affected by the shutdowns.

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.

Conclusion

The 8.6 percent unemployment rate is certainly still quite high compared to the state’s 3.2 percent from the pre-corona virus period. The decline in unemployment is, however, a positive development, and also a big indicator of how destructive the shutdowns were to businesses, especially those in the hospitality industry.

If the state government can resist making additional arbitrary rules that negatively impact businesses, and instead let businesses fully reopen, this downward trend in unemployment is highly likely to persist.