St. Paul, Minn. – New data released today by the Department of Employment and Economic Development (DEED) signals job growth recovery year-over-year. The state's labor force decline showed initial signs of reversal, increasing by about 850 people in September. The new data also signal other signs of strain mirroring national trends remain, including a climbing unemployment rate and decreasing labor force participation rate.

Five Minnesota supersectors gained jobs, including manufacturing, construction, leisure and hospitality, government, and financial sectors, while the unemployment rate ticked up in Minnesota and the U.S. in September.

"The biggest jobs gain was seen in manufacturing, a notable highlight since October is Manufacturing Month," said DEED Commissioner Matt Varilek. "Manufacturing is a critical sector in Minnesota and contributed $61 billion to the state economy last year. With more than 92,000 projected job openings through 2034, manufacturing remains a reliable pathway to family-sustaining careers in Minnesota."

SEPTEMBER EMPLOYMENT ANALYSIS BY THE NUMBERS:

• Minnesota's labor force size increased by 843 people over the month.
• Minnesota's unemployment rate ticked up one-tenth of a percentage point to 4.5% in September 2026. U.S. unemployment rate also ticked up one-tenth to 4.2%.
• Minnesota's labor force participation rate ticked down one-tenth of a percentage point to 66.7%. U.S. labor force participation rate ticked up two-tenths of a percentage point to 61.8%.
• Minnesota lost 4,600 jobs over-the-month, or 0.1%. The private sector lost 5,000 jobs. The U.S. over-the-month total employment increased by 29,000 jobs, or 0.0%.
• Over the year, Minnesota total jobs grew 1.2%. The private sector grew 1.3% over the year. Nationally, jobs grew 0.3% and the private sector grew 0.5%.
• In Minnesota, over-the-year average hourly earnings did not change; inflation was 3.7%.

"Each month we analyze labor market indicators from both an over-the-month and over-the-year perspective to help paint a picture of how Minnesota's economy is doing," said Angelina Nguyen, DEED Labor Market Information Director. "If we look at over-the-year numbers, Minnesota continues to outperform national trends. This is the ninth month in a row we're seeing an unemployment rate higher than the national one. We will keep an eye on this metric, especially at annual data revision in early 2027."

Current employment statistics, full state and national employment statistics, and further analysis of this month's data are available on the DEED website. 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 at CareerForce.MN.gov.