July jobs report: Minnesota economy strong but slowing as shifting federal policy creates uncertainty
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A new report suggests that Minnesota’s economy is slowing down in response to national challenges, but still remains one of the strongest in the country.
“We have a very resilient economy in Minnesota, but we fear that we may be finally seeing some of the impacts of a variety of federal actions that really create headwinds for us,” said Minnesota Employment and Economic Development Commissioner Matt Varilek.
Despite this, wages in Minnesota over the year are up more than 6 percent, well above inflation and the national average. Varilek said they’re still not entirely sure what’s behind that growth, despite increased productivity and competitive advantages in industries like medical technology and agriculture.
“The fact that we've been making up lost ground there is excellent news for Minnesota families and really for everyone who who spends money,” Varilek said.
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The report also showed that Minnesota lost 4,400 jobs over the month of July. Meanwhile, the unemployment rate creeped up a modest 0.2 percent.
Varilek said uncertainty over national economic policy — whether it’s flip-flopping on tariffs, interruptions to federal funding or mass layoffs — has ripple effects for the state economy and makes it hard to predict what will happen.
“One day they’re up; one day they’re down,” he said. “So you might as well just throw the spreadsheet out.”
Listen to the full conversation by clicking the player above.
