Minnesota's official unemployment rate is a useful indicator of the health of the state’s economy, but it does not tell the whole story. We can get a more complete picture of Minnesota's labor market by looking at alternative measures of unemployment, and by providing the rates by age, gender, and race. The numbers below come from the Current Population Survey.
Use these estimates with caution. The Current Population Survey, which produces these data, has a sample size of only 900 households in Minnesota making it too small to publish monthly estimates for subpopulations. This report uses the BLS unpublished 12-month moving averages. Rolling together 12 months of data is the most reliable method of publishing estimates for subpopulations in Minnesota but means that turning points in the data lag by 6 months. Moreover, even rolling 12 months of data together results in high standard errors on the estimates, reliability issues, and limitations on which demographic groups can have labor force estimates published. Essentially, the data provided in this report should be viewed as indicators rather than as reliable estimates.
The Bureau of Labor Statistics has developed alternative definitions of unemployment and underemployment (see Table 1). The official unemployment measure, called U-3, is the share of those aged 16 and over who, at the time of the monthly survey, were not employed in the past week and who looked for work sometime in the past four weeks. U-3 excludes anyone who was not seeking work in the past month (unless they were temporarily unemployed and have a date by which they will return to the same employer). This group, those not seeking work, is considered "not in the labor force." Note that the U-3 number reported in this analysis will differ from the official state unemployment estimate because it is based on a 12-month moving average.
In April, the U-3 stood at 3.5%, which is up from 2.9% one year ago.
The U-4 adds people who want a job but aren’t actively searching because they think there are no jobs available that fit their qualifications, also known as discouraged workers, to the count. Discouraged workers are those who have looked for work in the past year, but stopped looking in the past month because they think they cannot find a job.
In April, U-4 stood at 3.6%, up from 3.0% one year ago.
In April, there were 3,100 discouraged workers, which is down from 5,000 one year ago.
U-5 adds all other “marginally attached” workers, meaning people who looked for work sometime in the past twelve months but for reasons other than discouragement did not look in the past four weeks, to the count of unemployed.
In April the U-5 was 4.2% compared to 3.5% one year ago.
The broadest measure of unemployment, U-6, includes all of the above and adds people who are employed part-time but want full-time work.
In April, the U-6 was 6.8% in March and 5.4% one year ago.
In April, there were 82,100 involuntary part-time workers, up from 57,900 a year ago.
Table 1. Alternative Unemployment Rates, Minnesota, 12-month Moving Average
| Measure* | April
2025 |
March
2025 |
April
2024 |
Monthly
Change |
Annual
Change |
|---|---|---|---|---|---|
| U-3 | 3.5% | 3.5% | 2.9% | 0.0 | 0.6 |
| U-4 | 3.6% | 3.6% | 3.0% | 0.0 | 0.6 |
| U-5 | 4.2% | 4.2% | 3.5% | 0.0 | 0.7 |
| U-6 | 6.8% | 6.9% | 5.4% | -0.1 | 1.4 |
| Number of Discouraged Workers | 3,100 | 3,100 | 5,000 | 0 | -1,900 |
| Number of Involuntary Part-Time Workers | 82,100 | 85,300 | 57,900 | -3,200 | 24,200 |
* Definitions of Measures:
U-3 = Official unemployment rate
U-4 = Discouraged plus officially unemployed
U-5 = All marginally attached (including discouraged) plus officially unemployed
U-6 = Involuntary Part Time plus marginally attached, discouraged, and officially unemployed
Involuntary Part time = a component of U-6, including only persons working less than 35 hours per week who want, but cannot find, a full-time job
Long-term unemployment - lasting more than 27 weeks - imposes costs on people that go well beyond lost wages, including lower future earnings.
In April, the number of long-term unemployed stood at 21,100 and was up from 5,200 a year ago.
The share of long-term unemployed rose to 19.1%, up from 5.8% a year ago.
The median duration of unemployment was at 11.2 weeks, which is up from 7.4 weeks one year ago.
Table 2. Long-term Unemployment, Minnesota, 12-month Moving Average
| Measure* | April
2025 |
March
2025 |
April
2024 |
Monthly
Change |
Annual
Change |
|---|---|---|---|---|---|
| Number Long-Term | 21,100 | 17,700 | 5,200 | 3,400 | 15,900 |
| Share Long-Term | 19.1% | 16.0% | 5.8% | 3.1 | 13.3 |
| Median Duration of Unemployment (weeks) | 11.2 | 9.6 | 7.4 | 1.6 | 3.8 |
* Long term is defined as more than 27 weeks. The share of long term is expressed as a percentage of all unemployed (U-3).
The labor force participation rate for Black Minnesotans was 75.2% in April, which is 0.4 point lower than one year ago and well above the labor force participation rate for white Minnesotans. The employment to population ratio was 69.9% in April, down from 72.4% a year ago. The unemployment rate was 6.9% in April, up from 4.2% a year ago.
The labor force participation rate for Hispanic Minnesotans was 79.7% in April, up 6.4 points over the year. The employment to population ratio was 76.5% in April, up 6.5 points from one year ago. The unemployment rate was 4.0% in April, down 0.5 percentage points from a year ago.
The labor force participation rate for White Minnesotans was 67.6% in April, down 0.4 points over the year. The employment to population ratio was 65.6%, down 0.7 point from last year. The unemployment rate was 2.9% in April, up 0.3 point from last year.
The labor force participation rate for Native American Minnesotans was 57.7% in 2023, compared to 68.5% for the total population age 16 and older. The employment to population ratio for Native American Minnesotans was 51.1% compared to 65.7% for the total population and the unemployment rate was 11.4% compared to 3.9% for the total population. Please note these are 5-year estimates (from 2019 to 2023) from the American Community Survey and are not comparable to the numbers elsewhere in this article.
Figures 3, 4 and 5 display labor force participation rates, employment to population ratios and unemployment rates for the total population, Black, Hispanic, Asian, and White Minnesotans for the current months and comparisons to previous months using 12-month moving averages.
Note: Due to the small sample size for Black, Hispanic and Asian workers in the Current Population Survey, the unemployment estimate and unemployment rate are subject to high volatility for these groups. The unemployment rate is valuable and meaningful when examined as a long term trend, not month-by-month.
The labor force participation rate for women was 64.3% in March, which was 1.6 points lower than one year ago. The employment to population ratio was 61.9% in March, down 2.1 points from one year ago. The unemployment rate was 3.7% in March, up 0.8 points over the year.
The labor force participation rate for men was 72.1% in March, up 0.5 points from a year ago. The employment to population ratio was 69.4%, up 0.3 points from one year ago. The unemployment rate was at 3.3% in March, up 0.2 points over the year.
Table 6. Labor Force Indicators by Gender, Minnesota, 12-month Moving Average
| Month/Year | Labor force participation rate | Employment to population ratio | Unemployment rate | |||
|---|---|---|---|---|---|---|
| Female | Male | Female | Male | Female | Male | |
| April 2025 | 64.1% | 72.2% | 61.7% | 69.8% | 3.8% | 3.3% |
| March 2025 | 64.3% | 72.1% | 61.9% | 69.7% | 3.7% | 3.3% |
| April 2024 | 65.9% | 71.5% | 64.1% | 69.3% | 2.7% | 3.1% |
| Monthly change | -0.2 | 0.1 | -0.2 | 0.1 | 0.1 | 0.0 |
| Annual change | -1.8 | 0.7 | -2.4 | 0.5 | 1.1 | 0.2 |
The teen (age 16-19) unemployment rate was 7.1% in April, up 0.7 points over the year, which, despite the increase, puts the teen unemployment rate close to a record low for April going back to 2002, the beginning of this series. The labor force participation rate was 54.8%, down 11.1 points from a year ago. The employment to population ratio was 50.9%.
Note: Due to the small sample size for teen workers in the Current Population Survey, the unemployment estimate and unemployment rate for teens are subject to high volatility. The unemployment rate is valuable and meaningful when examined as a long term trend, not month-by-month.
