The June 2025 edition of Minnesota Economic Trends offers a comprehensive look at how Minnesota’s labor market and economy have evolved over the past year and beyond. This annual "state-of-the-state" issue from DEED's Labor Market Information (LMI) Office highlights statewide job growth and employment shifts, and also provides more in-depth regional snapshots for each of the six planning areas.
Top level measures in Minnesota continue to show a strong and relatively tight labor market with steady job and labor force growth, continued low unemployment and a relatively high number of vacancies. Digging a little deeper, however, we find increasing underemployment and longer durations of unemployment, which may be hinting at decreasing employer demand.
The Twin Cities Metro Area labor market reflects a paradox of both stability and change, with labor force participation and overall employment nearing pre-pandemic levels, yet significant shifts occurring at the county and industry levels - especially with strong growth in Health Care & Social Assistance and population expansion in outer suburbs. At the same time, job vacancies are declining from pandemic highs, signaling a potential shift in hiring dynamics influenced by automation, demographic change, and employer sentiment.
Despite the increased uncertainty introduced so far in 2025, most indicators point to a stable and healthy economy in the 13-county Central Minnesota region. While challenges remain, particularly with employment declines in certain sectors, the region’s labor market continues to show resilience.
Northeast Minnesota’s economy remained resilient in 2024, with growing employment, rising wages, and a persistently high job vacancy rate signaling continued demand for workers – particularly in service-oriented sectors like Health Care and Hospitality. However, the region’s labor force growth has slowed and the workforce remains smaller than pre-pandemic levels.
Northwest Minnesota's labor market shows signs of cooling while demonstrating remarkable resilience compared to other regions in the state. Despite job vacancies dropping to their lowest levels since 2020, the region has maintained the state's fastest job growth rate and second-fastest labor force growth. This unique combination, coupled with significant wage improvements for lower-earning workers, positions Northwest Minnesota to weather this transition more effectively than other parts of the state.
Southeast Minnesota's labor market has demonstrated remarkable stability with modest growth over the past decade, highlighted by a 4.9% increase in employment and 2.1% labor force expansion from 2014 to 2024. Healthcare has emerged as the dominant economic driver, accounting for nearly 75% of regional job growth, while the region maintains competitive wages ranking second among Minnesota's planning regions. Despite pandemic disruptions, the region has fully recovered its jobs, though labor market tightness presents ongoing challenges with job vacancies increasing 51% over the decade.
Southwest Minnesota’s economy is in transition, with job growth stalling but the labor force seeing some expansion in the past year. Unemployment rates remain low, and key sectors like Health Care, Manufacturing and Educational Services are offering higher wages to attract workers in a tight labor market.
