Minnesota job growth stalls and exports rise
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Minnesota’s job growth was effectively flat last month and unemployment ticked up to 4.4 percent on a seasonally adjusted basis. The national rate was 4.4 percent.
That’s according to new job numbers from the state’s Department of Employment and Economic Development for the month of August.
Officials also noted that a smaller share of Minnesota’s population is working or looking for work. The state’s labor force participation rate has fallen every month this year, down to 66.9 percent in August from 68.1 percent one year ago.
DEED Commissioner Matt Varilek said the state’s population is aging and fewer new workers are moving here to replace them, especially after the surge in immigration enforcement efforts earlier this year.
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“Our population growth has been boosted by a large number of arrivals from foreign sources, talented people choosing to come to this country and come to Minnesota, and current indications are that that has really almost been turned off entirely,” he said.
On an annual basis, Minnesota’s jobs growth is outpacing the national rate. Over the year, Minnesota added more than 45,000 jobs, a 1.5 percent increase, and the U.S. saw job growth of 0.3 percent.
Minnesota exports up, but maybe not for long
The state also released new export data Thursday. The value of Minnesota's exports rose 14 percent in the second quarter of this year compared to the same period in 2025. Exports rose by 15 percent nationally.
Canada remained the state's largest export market. Costa Rica became a top 10 export country for the first time, driven by a surge in optic and medical products.
Varilek said one of the reasons for growth could be relief from the Supreme Court, which struck down some of President Donald Trump’s tariffs this year. But that relief didn’t last long.
“As we look ahead to current export activity and future quarterly export releases, unfortunately, we now have to contend with a trade war with Canada, featuring tariffs on $20 billion worth of Canadian imports, and then the Canadians' tariffs on an equivalent level of U.S. exports in response,” he said.
He said the escalating trade war will likely raise prices for consumers and limit Minnesota businesses' ability to sell to Canadians.
