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For the first time since May of 2007, Minnesota's seasonally adjusted unemployment rate ticked higher than the nation's.

That's according to data released today by the Minnesota Department of Employment and Economic Development or DEED for the month of January. 

Job growth in Minnesota was largely flat between December and January and the unemployment rate inched up to 4.4 percent, which was slightly higher than the national average of 4.3 percent.

The Minneapolis-Saint Paul Metropolitan Statistical Area lost almost 2,000 jobs in January, a drop of .1 percent compared to a year before.

DEED commissioner Matt Varilek said the surge in immigration enforcement actions likely played a role.

“While we can't say that there was one and only one factor, it seems entirely possible to me that the ICE actions influenced our January numbers in a very negative way,” he said. 

On a year-over-year basis, overall job growth in the state was up between January 2025 and the same month this year, but the increase was slight.

"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 Bureau of Labor Statistics is catching up on report delays stemming from the federal shutdown last fall, so the Minnesota reports are lagging national ones.

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Minnesota’s seasonally adjusted unemployment rate inched up to 4.4 percent in January, which was slightly higher than the national average.

Minnesota’s job engine stalled in January

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