Unemployment rate ticks up one-tenth of a percentage to 4.1%.



Minnesota Department of Employment and Economic Development Press Release


*For Immediate Release*




Mary Haugen

[email protected]




January 22, 2026

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Minnesota Jobs Stable Over the Month and Grew Over the Year

St. Paul, MN – Minnesota's monthly job growth was flat in December and the state's unemployment rate ticked up one-tenth of a percentage point to 4.1%, according to data released today by the Minnesota Department of Employment and Economic Development (DEED).

The private sector lost 1,700 jobs between November and December on a seasonally adjusted basis, for which the Local Government subsector made up with 1,700 jobs gained in the same period. The labor force increased by over 2,100 people and the labor force participation rate stayed at 68.2% over the month.

“While our unemployment rate remains low by historical standards, its gradual upward rise continues a trend we’ve seen over several months. Chaos and uncertainty associated with the federal government shutdown, erratic tariffs and changes to national immigration policy were already weighing on Minnesota's economy, and it’s hard to imagine this month’s unprecedented federal actions in Minnesota will be anything but harmful in economic terms,” said *DEED Commissioner Matt Varilek*. “At DEED, we’ll continue doing all we can to connect workers to good jobs in high-demand fields, providing no-cost services for job seekers statewide, and supporting business attraction, retention and expansion.”   

Nine supersectors in Minnesota gained jobs on a seasonally adjusted basis over the month, led by Professional & Business Services (3,700 jobs, up 1.0%) and Manufacturing (2,200 jobs, up 0.7%). Government, Educational and Health Services, Other Services, Leisure and Hospitality, Financial Activities, and Mining and Logging also saw gains. The two supersectors that lost jobs over the month were Construction, which lost 9,900 jobs (down 6.6%) and Trade, Transportation and Utilities, which lost 400 jobs (down 0.1%).

Over the year, Minnesota gained more than 37,143 jobs, up 1.2%, compared to 0.3% nationally. The private sector gained 37,315 jobs, up 1.4%, compared to 0.5% nationally.

Eight supersectors gained jobs in Minnesota over the year while three supersectors lost jobs, compared to five supersectors nationally seeing jobs growth and six seeing declines. The Education and Health Services supersector saw the largest growth in Minnesota with 21,492 jobs gained, followed by Manufacturing, which gained 5,838 jobs. Professional & Business Services; Leisure and Hospitality; Trade, Transportation, and Utilities; Other Services; Construction; and Mining and Logging also added jobs.

Financial Activities (down 2,500 jobs, or 1.3%) and Information (down 1,800 jobs, or 4.1%) led supersector losses. While Government lost 172 jobs overall, federal government employment in Minnesota declined 6.0%.

At 32.3 hours per week, Minnesota’s December average work week decreased half-an-hour over-the-month and by six-tenths of an hour over-the-year. Nationally, the average work week decreased four-tenths of an hour to 34.2 hours over-the-month and by four-tenths of an hour over-the-year. 

“In terms of the state’s economic outlook, flat over-the month job growth and a shorter work week are two items we’re tracking,” said *Angelina Nguyen, DEED Labor Market Information director*.

Visit the DEED website to view full state and national employment statistics [ [link removed] ], monthly jobs numbers [ [link removed] ] and further analysis of this month's data [ [link removed] ]. In addition, find related articles about job growth and labor market changes in the latest issue of Minnesota Employment Trends [ [link removed] ]. Access resources to help Minnesotans prepare for and find employment now at CareerForceMN [ [link removed] ].

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"Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161."





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