State and National Employment and Unemployment

Unemployment

The unemployment rate dipped slightly to 4.3% in Minnesota in July, on a seasonally adjusted basis.

The number of unemployed decreased to 135,668 workers and the number of employed decreased to 2,991,180 workers. The labor force shrunk to 3,126,848 workers, and the labor force participation rate decreased to 66.9%.

The U.S. unemployment decreased to 4.1% in July, on a seasonally adjusted basis. The labor force participation rate decreased to 61.4%.

Unemployment Rates

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Monthly Employment

Minnesota’s monthly job growth was negative in July as the state lost 1,900 jobs (0.1%).

Three of eleven published supersectors posted positive growth. Mining and Logging added 100 jobs, Professional and Business Services added 2,400 jobs and Other Services added 900 jobs.

Eight supersectors posted decreases. Construction lost 1,000 jobs; Manufacturing lost 300 jobs; Trade, Transportation and Utilities lost 300 jobs; Information lost 100 jobs; Financial Activities lost 1,100 jobs; Educational and Health Services lost 900 jobs; Leisure and Hospitality lost 500 jobs and Government lost 1,100 jobs.

U.S. total payroll employment was mostly flat in June, losing 23,000 jobs or 0.0%. Private sector employers added 30,000 jobs (0.0%) on a seasonally adjusted basis. Minnesota outperformed the nation in three supersectors.

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

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Annual Employment

Minnesota's over the year (OTY) payroll employment growth stood at 44,092 jobs, or 1.5%, lower than June’s 1.6% OTY growth. The private sector added 38,277 jobs, or 1.5% in July, which was lower than June’s 1.7% increase.

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

Eight of eleven published supersectors in Minnesota added jobs over the year. Mining and Logging added 362 jobs (5.7%), Construction added 6,871 jobs (4.4%), Manufacturing added 7,324 jobs (2.3%), Professional and Business Services added 5,405 jobs (1.4%), Education and Health Services added 21,782 jobs (3.6%), Leisure and Hospitality added 3,490 jobs (1.2%), Other Services added 2,530 jobs (2.1%), and Government added 5,815 jobs (1.4%).

Trade, Transportation and Utilities lost 797 jobs (0.2%); Information lost 1,628 jobs (3.9%) and Financial Activities lost 7,062 jobs (3.7%).

Eight supersectors showed strength over the year in Minnesota compared to the nation, as did Total Nonfarm (up 1.5% versus 0.2% nationally). Mining and Logging was up 5.7% (versus -0.3% nationally), Construction was up 4.4 % (versus 0.7%), Manufacturing was up 2.3% (versus 0%), Professional and Business Services was up 1.4% (versus 0.6%), Education and Health Services was up 3.6% (versus 2%), Leisure and Hospitality was up 1.2% (versus 0.4%), Other Services was up 2.1% (versus 0.8%) and Government growth was up 1.4% (versus -1.1%).

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

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