St. Paul, MN – Minnesota's monthly job growth remained flat in January, and the state's unemployment rate ticked up two-tenths of a percentage point to 4.4% while the national rate ticked down one-tenth of a percentage point to 4.3%, according to data released today by the Minnesota Department of Employment and Economic Development (DEED). 

"Our state economy has weathered a number of economic shocks over the last year, and the impact of that now appears to be showing up in the data,” said DEED Commissioner Matt Varilek. "This jobs report reflects the cumulative effect of almost 12 months of turbulence. The national economy has been slowing over the last year, with erratic tariffs and a radical shift in immigration policy taking a toll. No state has borne the brunt of these factors more directly than Minnesota, especially earlier in 2026. That said, I remain optimistic that our economic diversity and resilience will see us through, especially if some of these headwinds fade.” 

The private sector lost 900 jobs between December and January on a seasonally adjusted basis, while the Government sector gained 1,000 jobs gained in the same period. Four supersectors in Minnesota gained jobs on a seasonally adjusted basis over the month, led by Educational and Health Services (5,000 jobs, up 0.8%) and Construction (3,700 jobs, up 2.6%). Six supersectors lost jobs over the month, led by Leisure and Hospitality (4,000 jobs, down 1.5%), Trade, Transportation and Utilities (2,500 jobs, down 0.5%) and Financial Activities (1,800 jobs, down 1.0%). 

Over the year, Minnesota gained 13,147 payroll jobs, up 0.4%. The private sector gained 10,060 jobs, up 0.4% over the year. Five supersectors gained jobs, six lost jobs in Minnesota. Nationally, four supersectors gains jobs while seven lost jobs. 

"The data are showing signs of a weaker labor market," said Angelina Nguyen, DEED Labor Market Information director. “We see smaller job growth and a higher unemployment rate than we have in years.” 

The Minneapolis-Saint Paul Metropolitan Statistical Area saw a loss of almost 2,000 jobs in January 2026 – a decrease of 0.1% compared to a year ago. 

Minnesota’s labor force decreased by 4,562 people and the labor force participation rate ticked down one-tenth of a percentage point to 68.2% over the month.

The Bureau of Labor Statistics (BLS) is catching up on report delays stemming from the federal shutdown last fall. The February jobs report will take place on April 16, and the March report will be shared on April 30. Visit the DEED website to view full state and national employment statistics, monthly jobs numbers and further analysis of this month's data.  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.