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Minnesota Added Jobs, Increased Labor Force in May

June 2025

6/20/2025 8:27:59 AM

St. Paul, MN – Minnesota saw another strong month of job and labor force growth in May, according to new data from the Minnesota Department of Employment and Economic Development (DEED).

Minnesota added 6,600 jobs in May, double the rate of the nation as a whole (0.2% versus 0.1%). Minnesota's labor force grew by 2,236 people, continuing the labor market's recent record of strong growth – Minnesota has added people to labor force 10 out of the last 12 months.

Minnesota's unemployment rate increased one-tenth of a percentage point to 3.3%, compared to 4.2% nationally. The labor force participation rate was flat at 68.2%, compared to 62.4% nationally.

"May was another good month for Minnesota's job market, with employment growth much stronger than the nation as a whole," said DEED Commissioner Matt Varilek. "We're grateful to the Governor and Legislature for adopting a new budget that will enable us to drive continued progress, with new flexibility for the Minnesota Forward Fund, the continuation of our Drive for 5 campaign to provide workforce training in high-demand fields and new funding to support Minnesota's public service workforce."

Over the month, six supersectors added jobs, with particularly strong growth in Leisure & Hospitality (up 2,100 jobs, or 0.8%), Education & Health Services (up 3,800 jobs, or 0.6%) and Trade, Transportation & Utilities (up 2,500 jobs, or 0.5%). Mining & Logging (down 200 jobs, or 3.0%), Construction (down 1,100 jobs, or 0.8%), and the Other Services supersector (down 1,000 jobs, or 0.8%) led job losses.

Government employment was up 400 jobs over the month, but those gains were confined to state and local hiring. Overall, federal employers in Minnesota shed 400 jobs.

Over the year, Minnesota gained jobs faster than the U.S. as a whole, both overall and in the private sector. The state added 40,192 payroll jobs, up 1.3% compared to 1.1% nationally. The private sector added 32,356 jobs, up 1.2% over the year, compared to 1.1%. 

"Overall, May was a good month for Minnesota's steadily growing job market," said DEED Labor Market Information Director Angelina Nguyen. "We are pleased to see growth faster than the national average this month as we continue adding workers and jobs."

Visit the DEED website to view full state and national employment statistics, monthly jobs numbers and further analysis of this month's data and a breakdown of the 2024 revisions. 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.

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