A nail salon, as pictured on May 20, 2020, one of many Minnesota businesses shuttered at the time as part of the state’s response to the COVID-19 pandemic. Rilyn Eischens/Minnesota Reformer
Minnesota’s unemployment rate was 7.4% in August, a decline of 0.2% from July as the COVID-19 pandemic continues to stress businesses and workers.
That means 231,599 Minnesotans were jobless in August, according to data released Thursday by the Minnesota Department of Employment and Economic Development. People of color are still most affected by the economic downturn, with 16.3% of Black workers and 9.7% of Latino workers unemployed last month.
The state’s unemployment rate is below the national rate, which declined from 10.2% in July to 8.4% in August.
Minnesota added 40,500 payroll jobs in August, an increase of 1.5% from the month before. Still, the state’s number of jobs has declined 7.3% — more than 219,200 jobs — compared to August 2019. The leisure and hospitality industry has been hit the hardest, with the number of payroll positions down 26.6% over the year.
More than 980,000 Minnesotans have applied for unemployment benefits since March. The number of applicants doesn’t match the unemployment rate because it includes people who may be back at work after receiving benefits. Workers can receive benefits if their hours have been cut or they’re furloughed, while the unemployment rate only counts people who are not working.
The unemployment rate does not include Minnesotans who have given up looking and left the labor force altogether.
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