Jobs declined and labor force participation decreased as ICE actions persisted.



Minnesota Department of Employment and Economic Development Press Release


*For Immediate Release*




Mary Haugen

[email protected]




April 16, 2026

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Minnesota’s Unemployment Rate Ticked Up in February

"Jobs declined and labor force participation decreased as ICE actions persisted."

*St. Paul, MN* – Minnesota's unemployment rate ticked up one-tenth of a percentage point to 4.5% while the national rate ticked up one-tenth of a percentage point to 4.4%, according to data released today by the Minnesota Department of Employment and Economic Development (DEED).

"February was a very challenging month for Minnesota communities due to the ICE presence, and that also contributed to it being a tough month for the state’s labor market,” said *DEED Commissioner Matt Varilek*. "However, our state’s diverse economy remains resilient, with Minnesota job growth still outpacing the nation as a whole over the course of the last 12 months.”

Minnesota’s labor force decreased by 8,575 people over the month and the labor force participation rate ticked down three-tenths of a percentage point to 67.9% over the month. The U.S. labor force participation rate dropped one-tenth of a percentage point to 62.0%.

Minnesota lost 6,100 jobs over-the-month; the private sector accounted for most of those losses (5,900 jobs, down 0.2%) between January and February on a seasonally adjusted basis.

Three supersectors in Minnesota gained jobs on a seasonally adjusted basis since the prior month, led by Educational and Health Services (4,100 jobs, up 0.7%). Eight supersectors lost jobs over the month, led by Trade, Transportation and Utilities (3,300 jobs, down 0.6%) and Leisure and Hospitality (2,000 jobs, down 0.7%). Construction (1,700 jobs, down 1.2%), Other Services (1,700 jobs, down 1.4%) and Manufacturing (1,300 jobs, down 0.4%) also saw significant losses.   

Over the year, Minnesota gained 6,974 payroll jobs (up 0.2%) – outpacing the national rate. The state’s private sector gained 5,668 jobs, also up 0.2% over the year. Five supersectors gained jobs, six lost jobs. U.S. employment declined 0.4% over the year, with the private sector down 0.3%. Three supersectors gained jobs at the national level, while eight lost jobs. 

At 33.0 hours per week, Minnesota’s February average work week increased by one hour over the month. Nationally, the average work week increased six-tenths of an hour to 34.5 hours during that period.

Calculating seasonally adjusted two-month job changes:


* From October to December, Minnesota gained 5,400 jobs in October-December, (up 0.18%); the U.S. grew 0.02%.
* From November to January, Minnesota lost 900 jobs (down 0.03%); the U.S. grew 0.07%.
* From December to February, Minnesota lost 7,700 jobs (down 0.25%); the U.S. grew 0.02%. 

"The February job report is interesting in that even though Minnesota’s unemployment rate rose and jobs declined, we see a longer average work week for those who are employed,” said *Angelina Nguyen, DEED Labor Market Information director*. “And, as the unemployment rate increased, Unemployment Insurance claims did not increase alongside it – this is highly unusual and coincides with ICE being in Minnesota.”

The Bureau of Labor Statistics (BLS) will be caught up from delays stemming from last fall’s federal shutdown when Minnesota’s March jobs report is released on April 30. 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] ]

" "###

"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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