State and National Employment and Unemployment

Unemployment

The unemployment rate held at 4.5% in Minnesota in March 2026, on a seasonally adjusted basis.

Minnesota's labor force shrunk to 3,156,405 workers, and the state's labor force participation rate decreased to 67.6%. The number of unemployed increased to 142,943 workers and the number of employed decreased to 3,013,462 workers. 

In comparison, the U.S. unemployment rate decreased to 4.3% in March, on a seasonally adjusted basis. The labor force participation rate decreased to 61.9%.

Unemployment Rates

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Monthly Employment

Minnesota’s monthly job growth was up slightly in March as the state added 800 jobs (0.0%).

Five of eleven published supersectors posted positive growth. Construction added 1,100 jobs, Manufacturing added 1,500 jobs, Professional and Business Services added 1,600 jobs, Other Services added 300 jobs and Government added 200 jobs.

Five supersectors posted decreases. Trade, Transportation and Utilities lost 1,900 jobs; Information lost 400 jobs; Financial Activities lost 500 jobs; Education and Health Services lost 300 jobs and Leisure and Hospitality lost 800 jobs.

U.S. total payroll employment was up slightly March, adding 178,000 jobs or 0.1%. Private sector employers added 186,000 jobs (0.1%) on a seasonally adjusted basis. Minnesota outperformed the nation in five supersectors.

Payroll Employment by Industry, March 2026 Seasonally Adjusted, Minnesota and United States

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Annual Employment

Minnesota over-the-year (OTY) payroll employment growth stood at 9,246 jobs or 0.3%, higher than February’s 0.2% growth. The private sector added 8,104 jobs, or 0.3% in March, which was higher than February’s 0.2%.

U.S. total nonfarm over-the-year job growth stood at 0.1% in March, better than February’s 0.0%. Private sector employment growth was at 0.4%, better than February’s 0.2%.

Six of eleven published supersectors in Minnesota added jobs over the year. Mining and Logging added 90 jobs (1.5%), Construction added 5,257 jobs (4.3%), Professional and Business Services added 22 jobs (0.0%), Education and Health Services added 19,230 jobs (3.2%), Other Services added 1,470 (1.3%), and Government added 1,142 jobs (0.3%).

Manufacturing lost 172 jobs (0.1%); Trade, Transportation and Utilities lost 7,612 jobs (1.5%); Information lost 1,962 jobs (4.7%); Financial Activities lost 3,503 jobs (1.9%); Professional and Business Services lost 4,726 jobs (1.3%) and Leisure and Hospitality lost 4,714 jobs (1.8%).

Seven supersectors showed strength over the year in Minnesota compared to the nation, as did Total Nonfarm, which was up 0.3% (versus 0.1% nationally). Mining and Logging was up 1.5% (versus -2.6% nationally), Construction was up 4.3% (versus 0.7%), Manufacturing was down 0.1% (versus -0.6%), Professional and Business Services was flat (versus -0.1%), Education and Health Services was up 3.2% (versus 2.4%), Other Services was up 1.3% (versus 0.6%) and Government growth was up 0.3% (versus -1%).

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