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According to a recent update from the Minnesota Department of Employment and Economic Development, or DEED, job growth in the state was largely flat between November and December, with employers adding roughly 2,100 jobs over that period. 

The labor force participation rate also remained unchanged at 68.2 percent.

DEED officials report unemployment ticked up slightly to 4.1 percent last month, continuing a trend that has been happening for the past few months. But it's still low by historical standards.

“Chaos and uncertainty associated with the federal government shutdown, erratic tariffs and changes to national immigration policy were already weighing on Minnesota's economy,” said DEED Commissioner Matt Varilek. “It’s hard to imagine this month’s unprecedented federal actions in Minnesota will be anything but harmful in economic terms.” 

On a seasonally adjusted basis, job growth between November and December in the state was led by professional and business services, followed by manufacturing.

Construction was among the supersectors that lost the most jobs during that period, though it still posted annual gains.  

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Despite jobs being added in the state

"Minnesota's labor market is solid, with a good unemployment rate and a growing labor force,” Varilek said. “All of which are notable, considering the instability we've seen at the federal level and the impacts this is having on a variety of national economic indicators.'

On the wage front, DEED said Minnesota’s average hourly earnings grew by 3.6 percent between December 2024 and last month, whereas inflation was 2.7 percent. That equals a growth in average purchasing power for consumers. 

At an annual rate, Varilek said the state’s job growth is outpacing national trends.

“We continue monitoring for changes due to uncertainty emanating from Washington and, of course, the events taking place here in Minnesota,” he said. “But our diverse economy and resilience remain critical at this time in particular.” 

January's report won't be out until mid-April because of the federal shutdown last year. And DEED doesn't typically release a jobs report in February.   

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Mathew Holding Eagle III

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The Minnesota Department of Employment and Economic Development says job growth in the state between November and December in the state was largely flat, and the unemployment ticked up slightly to 4.1 percent last month.

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Latest DEED report finds ‘solid’ labor market amid ‘flat’ job growth in December for the state

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