ST. PAUL, Minn. -

Minnesota's unemployment rate is ticking up as the state sheds jobs. The state lost 1,500 jobs in August, according to data released Thursday by the Department of Employment and Economic Development.

That brings the state's unemployment rate to 4 percent, a slight increase from its previous 3.9 percent rate.

But state officials still have a rosy view of Minnesota's economy because it's added nearly 41,000 jobs over the past year. That puts its job growth rate at 1.4 percent for the year, below the 1.7 percent growth nationwide.

Heavy job losses in construction and manufacturing led to the dropping job numbers. Those losses were partially offset by jobs added in trade, transportation and utilities.