skip to content
Primary navigation

News

Minnesota Employment and Economic Development News

Find news from prior years in DEED's digital library.

Minnesota Jobs and Labor Force Grow Again in December

1/23/2025 9:30:36 AM

St. Paul, MN – Minnesota employers added 4,100 jobs in December and the state's labor force grew by 3,300 jobseekers, according to data released today by the Department of Employment and Economic Development (DEED). Minnesota has added jobs for six straight months and 10 months out of the last 12.

Minnesota's unemployment rate decreased two-tenths of a percentage point to 3.3% in December. Nationally, over the month, the unemployment rate declined one-tenth of a percentage point to 4.1%. The state's labor force participation rate remained steady at 67.8%, as did the national rate of 62.5%.

"Employers continue to create good-paying jobs, and more Minnesotans are looking for work this month – two positive indicators for Minnesota's economy," said DEED Commissioner Matt Varilek. "Minnesota is also seeing high wages, surging exports and high-profile business expansions in key industries around the state. Our economy has momentum, and we're planning to keep it going in 2025 through targeted workforce development investments and ongoing support for businesses looking to launch, expand and create jobs all over Minnesota."

Job gains in December were led by two sectors: Education and Health Services (up 5,100 jobs) and Government (up 4,300 jobs). Within those sectors, Education and Health Services saw fast growth in Health Care and Social Assistance jobs (up 4,600), and Government was led by hiring at local units of government (up 3,700). Overall, Minnesota's private sector lost 200 jobs over the month.

Over the year, nearly 10,000 Minnesotans joined the labor force. In that time, Minnesota gained nearly 37,500 payroll jobs, up 1.3% compared to 1.4% nationally. The private sector gained 17,302 jobs, up 0.7%, compared to 1.3% nationally.

Four Minnesota supersectors gained jobs over the year: Education and Health Services, up 41,090; Government, up 20,196, Leisure and Hospitality, up 1,099; and Construction, up 196. All other sectors declined, led by Professional and Business Services (down 11,856) and Manufacturing (down 4,107).

"There was positive news in this month's report, including ongoing job growth, labor force gains and strong wages," said Labor Market Information Director Angelina Nguyen. "What we want to see in the year ahead is continued steady growth in both the public and private sectors."

Average hourly wages for private sector workers continue to grow. Over the year average hourly earnings increased $1.98, up 5.4%, compared to national growth of 4.6% and an inflation rate of 2.9%.

Visit the DEED website to view full state and national employment statistics, monthly jobs numbers and further analysis of this month's data. You can also find alternative measures of unemployment. In addition, find related articles about job growth and labor market changes in the latest issue of Minnesota Employment Trends. Access resources to help Minnesotans prepare for and find employment now at CareerForceMN.

unemployment

jobs

unemployment insurance

labor market information

back to top