A Finite Element (FE) modelling approach is presented to account for the core losses in electrical machines that are generated by higher harmonic frequencies, for example those caused by Pulse Width Modulation (PWM) switching or by space harmonics due to the machine geometry. The model builds further on a post-processing calculation tool that was recently developed to take into account the magnetic skin effect in electrical steel laminations at high frequencies, and extends this by a more detailed loss analysis of the minor hysteresis loops that are caused by the higher harmonics. Further, these tools for high-frequency loss analysis are integrated into a complete electrical machine model with separate consideration of the major and minor loops. The modelling approach relies strongly on extensive magnetic measurement data of the electrical steel, in order to accurately predict the different loss components for minor hysteresis loops as a function of the DC bias field, frequency and amplitude of the minor loop. Results from the model are shown for an automotive traction motor, illustrating the losses caused by PWM harmonics and demonstrating the relevance of including the skin effect in these calculations.