State and National Employment and Unemployment

Unemployment

The unemployment rate rose slightly to 4.5% in Minnesota in September, on a seasonally adjusted basis.

The number of unemployed increased to 141,134 workers and the number of employed decreased to 2,984,171 workers. The labor force increased to 3,125,305 workers, and the state's labor force participation rate decreased to 66.7%.

The U.S. unemployment rate increased to 4.s% in September, on a seasonally adjusted basis. The nation's labor force participation rate increased to 61.8%.

Unemployment Rates

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Monthly Employment

Minnesota’s monthly job growth was negative in September as the state lost 4,600 jobs on a seasonally adjusted basis.

Five of eleven published supersectors posted positive growth. Construction added 1,100 jobs, Manufacuring added 1,600 jobs, Financial Activities added 300 jobs, Leisure and Hospitality added 1,000 jobs, and Government added 400 jobs.

Five supersectors posted decreases. Trade, Transportation and Utilities lost 800 jobs; Information lost 100 jobs; Professional and Business Services lost 2,100 jobs; Educational and Health Services lost 5,700 jobs and Other Services lost 300 jobs.

Employment in Mining and Logging was flat.

U.S. total payroll employment was up in September, adding 29,000 jobs or 0.0%. Private sector employers added 46,000 jobs (0.0%) on a seasonally adjusted basis. Minnesota outperformed the nation in six supersectors.

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

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Annual Employment

Minnesota over the year (OTY) payroll employment growth in September stood at 35,167 jobs or 1.2%, lower than August’s 1.5% growth. The private sector added 32,846 jobs, or 1.3% in September, which was lower than August’s 1.5%.

U.S. total nonfarm over-the-year job growth stood at 0.3% in September, the same as in August. Private sector employment growth was at 0.5%, the same rate as in August.

Eight of eleven published supersectors in Minnesota added jobs over the year. Mining and Logging added 344 jobs (5.5%), Construction added 8,015 jobs (5.2%), Manufacturing added 12,437 jobs (3.9%), Professional and Business Services added 4,327 jobs (1.2%), Education and Health Services added 10,268 jobs (1.7%), Leisure and Hospitality added 5,381 jobs (1.9%), Other Services added 2,761 jobs (2.4%), and Government added 2,321 jobs (0.5%).

Trade, Transportation and Utilities lost 3,988 jobs (0.8%); Information lost 1,553 jobs (3.8%) and Financial Activities lost 5,146 jobs (2.8%).

Eight supersectors showed strength over the year in Minnesota compared to the nation, as did Total Nonfarm (up 1.2% versus 0.3% nationally). Mining and Logging was up 5.5% (versus 0.3% nationally), Construction was up 5.2 % (versus 1.2%), Manufacturing was up 3.9% (versus 0.4%), Information was down 3.8% (versus -4%), Professional and Business Services was up 1.2% (versus 0.5%), Leisure and Hospitality was up 1.9% (versus 0.4%), Other Services was up 2.4% (versus 0.5%) and Government growth was up 0.5% (versus -0.9%).

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

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