Minnesota lost 6,100 jobs in February; state officials link decline to ICE surge
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Minnesota lost thousands of jobs in February, and state officials say federal immigration enforcement actions likely played a significant role.
At a media briefing, Department of Employment and Economic Development Commissioner Matt Varilek said the state lost about 6,100 jobs over the month — double the rate of decline seen nationally.
Minnesota lost about 700 jobs in February 2025.
DEED Labor Market Information Director Angelina Nguyen says that while this year’s loss is substantial, it is not a record. She notes that each year typically includes at least one sharper monthly decline, pointing out that Minnesota has seen larger drops in other months, including losses of more than 8,000 jobs in early 2025 and more than 9,000 in mid-2024. She adds that the largest monthly decline on record came in April 2020, when the state lost 339,800 jobs at the start of the COVID-19 pandemic.
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Minnesota’s unemployment rate also ticked up to 4.5 percent in February, while the labor force shrank by more than 8,500 people.
Varilek said the timing of those changes aligns with the federal government’s “Operation Metro Surge.”
“While we cannot say that it was the one and only factor, ICE actions do seem to align with influencing Minnesota’s February numbers in a negative way,” he said.
State officials pointed to signs that workers may have left jobs or stopped looking for work altogether. Minnesota saw an increase in unemployment — but not a correlating increase in unemployment benefit claims — suggesting some newly unemployed workers are not applying for benefits.
The impacts were not evenly distributed. Varilek said the hospitality industry saw disproportionate job losses, reflecting both workers staying home and fewer customers.
Varilek noted that over the past year, Minnesota jobs grew slightly, while national job numbers declined.
Still, officials expect the effects of the enforcement surge to linger.
“I think it is fair to say that it will have ripple effects for years,” Varilek said, pointing to potential long-term challenges for both workers and businesses.
State officials say while the data certainly suggests a connection, it’s difficult to measure exactly how much of the job loss is tied to immigration enforcement versus other economic factors.
