State and National Employment and Unemployment

Unemployment

The unemployment rate decreased to 4.4% in Minnesota in May, on a seasonally adjusted basis.

The number of unemployed decreased to 138,642 people and the number of employed decreased to 2,999,019 workers. The labor force shrunk to 3,137,661 workers, and the state's labor force participation rate decreased to 67.2%.

In comparison, the U.S. unemployment rate held at 4.3% in May, on a seasonally adjusted basis, and the national labor force participation rate held at 61.8%.

Unemployment Rates

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Monthly Employment

Minnesota’s monthly job growth was up in May as the state added 5,400 jobs (0.2%).

Six of eleven published supersectors posted positive growth. Construction added 2,100 jobs; Manufacturing added 900 jobs; Trade, Transportation and Utilities added 1,700 jobs; Information added 200 jobs; Education and Health Services added 1,100 jobs; and Leisure and Hospitality added 2,400 jobs.

Three supersectors posted decreases. Financial Activities lost 2,400 jobs, Professional and Business Services lost 100 jobs, and Government lost 500 jobs.

Employment was flat in Mining and Logging and Other Services.

Minnesota outperformed the nation in six supersectors and in total nonfarm and total private sector employment.

Over-the-Month (OTM) Employment Change by Industry, May 2026 - Seasonally Adjusted

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Annual Employment

Minnesota over the year (OTY) payroll employment growth stood at 19,669 jobs or 0.6%, higher than April’s 0.1% OTY growth. The private sector added 14,693 jobs, or 0.6% in May, which was higher than April’s 0.1%.

U.S. total nonfarm over-the-year job growth stood at 0.3% in May, better than April’s 0.2%. Private sector employment growth was at 0.5%, the same as in April.

Six of eleven published supersectors in Minnesota added jobs over the year. Mining and Logging added 10 jobs (0.2%), Construction added 7,693 jobs (5.1%), Manufacturing added 4,297 jobs (1.4%), Education and Health Services added 16,718 jobs (2.7%), Other Services added 1,286 jobs (1.1%), and Government added 4,976 jobs (1.1%).

Trade, Transportation and Utilities lost 6,014 jobs (1.1%); Information lost 1,664 jobs (4%); Financial Activities lost 5,848 jobs (3.1%); Professional and Business Services lost 1,094 jobs (0.3%) and Leisure and Hospitality lost 617 jobs (0.2%).

Six supersectors showed strength over the year in Minnesota compared to the nation. Mining and Logging was up 0.2% (versus -1% nationally), Construction was up 5.1% (versus 0.7%), Manufacturing was up 1.4% (versus -0.4%), Education and Health Services was up 2.7% (versus 2.3%), Other Services was up 1.1% (versus 0.5%) and Government growth was up 1.1% (versus -0.8%).

Over-the-Year (OTY) Employment Change by Industry, May 2026 - Not Seasonally Adjusted

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