Minnesota job report shows growth after job losses to start 2026

ST. PAUL, Minn. (FOX 9) - Numbers from the Minnesota Department of Employment and Economic Development (DEED) show improved job growth after the state reported increased unemployment and job losses earlier in the year. 

Minnesota reports job growth from March to May 

By the numbers:

The unemployment rate in Minnesota went down one-tenth of a percentage point to 4.4% in May, according to DEED data. 

State officials say they are making progress toward closing the gap with the national unemployment rate, which remained flat over the month at 4.3%. 

DEED reports that Minnesota's over-the-month jobs growth in May outpaced the national rate for the second consecutive month.

The state added 5,400 non-farm jobs (up 0.2%) on a seasonally adjusted basis while the U.S. total non-farm employment increased by 172,000 jobs (up 0.1%).

READ MORE: Minnesota unemployment rate increases, job growth remains flat: Data

In the private sector, Minnesota gained 5,900 jobs (up 0.2%) compared to the U.S. private sector which gained 120,000 jobs (up 0.1%).

The sectors that saw the largest growth were Leisure and Hospitality (2,400 jobs, up 0.9%) as well as Construction (2,100 jobs, up 1.4%). 

Below are the seasonally adjusted two-month job changes in Minnesota compared to the rest of the country so far this year.

• Minnesota lost 6,400 jobs in January—March, down 0.21%; the U.S. grew 0.04.
• Minnesota gained 19,000 jobs in February—April, up 0.63%; the U.S. grew 0.25%.
• Minnesota gained 23,900 jobs in March—May, up 0.79%; the U.S. grew 0.22%.

Minnesota's labor force participation rate fell by two-tenths of a percentage point to 67.2% over the past month, marking the sixth consecutive month of declines, compared to the national rate, which held even at 61.8%.

What they're saying:

DEED Deputy Commissioner Kevin McKinnon shared the following statement on the report:

"It's encouraging to see some progress amidst a mixed economic picture both in the state and the nation as a whole. Minnesota continues to invest in upskilling our state’s workforce and attracting and supporting business growth to maintain a diverse, resilient economy amidst these challenging conditions." 

DEED Labor Market Information Director Angelina Nguyen added the following statement: 

"It’s a relief to see the unemployment rate and monthly jobs growth improve in May. Wage and labor force growth have yet to reverse course."

Rough start to 2026 

The backstory:

Minnesota’s economy had faced nearly a year of turbulence, with national trends like tariffs and immigration changes impacting local businesses.

DEED officials said in April that these factors hit Minnesota especially hard, but pointed to the state’s economic diversity as a reason for optimism.

The overall labor force is also shrinking, reflecting broader uncertainty, officials with DEED have noted.

Dig deeper:

More information can be found on the DEED website.

Anyone seeking resources to help find employment can visit CareerForce.

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