Minn. jobless rate static despite hiring

Minnesota employers added thousands of jobs in June. But the state's unemployment rate remained unchanged at 5.6 percent.

"For the first time since February, we saw job growth in the state," says Steve Hine, the director of the state's Labor Market Information Office. "We added 7,200 jobs May to June. Between March and May, we had lost 5,600 jobs. So a 7,200-job gain in June was a welcome respite from what we had experienced over the past few months."

Professional and business services, government and manufacturing were among the leading job gainers. Losers included leisure and hospitality, education, health services and construction.

It was the third month that the state's unemployment rate remained at a seasonally adjusted 5.6 percent, well below the national unemployment rate of 8.2 percent.

The monthly unemployment and jobs statistics are derived from separate surveys, one of households and the other of employers. Both measures are subject to revision and a margin of error.

The statistics are also adjusted to reflect seasonal variations in employment, such as the typical fluctuations in construction work.

The samples are determined by the federal government. The unemployment rate is based on a survey of 1,800 households with about 2,400 working-age people. The job counts are derived from a survey of 3,000 businesses.

Hine has expressed concern that the business survey underestimates job gains in the state. Initially, the agency estimated that the state lost 900 jobs in May; that loss has now been judged to be 4,700. Over the past year, however, the state has gained an estimated 35,000 jobs, a growth rate of 1.3 percent, which matches the U.S. rate in that period.