Minnesota Posts Large Gains in Jobs, Labor Force in January



Minnesota Department of Employment and Economic Development Press Release


*For Immediate Release*




Mary Haugen

[email protected]




March 13, 2025

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Minnesota Posts Large Gains in Jobs, Labor Force in January

St. Paul, MN – Minnesota employers added 9,600 jobs in January, the largest monthly gain since March 2024, and the labor force grew by 4,800 people, according to data released today by the Department of Employment and Economic Development (DEED).

Minnesota’s 0.3% job growth in January was three times faster than the nation as a whole. The state’s unemployment rate is 3.0%, which is steady following revisions to the monthly rate from late 2024. The national unemployment rate is 4.0%. Minnesota has added jobs for six straight months and nine months out of the last 12.

Minnesota’s labor force participation rate increased one-tenth of a percentage point to 68.1% in January, compared to 62.2% nationally.

This report covers January data and does not reflect actions taken since then.

“Through January, Minnesota employers continued to add jobs at an impressive clip – an indicator of the underlying strength of Minnesota’s job market,” said *DEED Commissioner Matt Varilek*. “As we all confront an economic outlook that is much more uncertain, we are fortunate do so from a foundation of strength. At DEED will continue to work hard to grow our labor force, connect workers to good jobs and help businesses take root and grow here in Minnesota.”

Eight of the 11 supersectors gained jobs in January, led by strong months for Education & Health Services (up 4,300 jobs), Professional & Business Services (1,900 jobs) and Construction (1,200 jobs).

Only two supersectors lost jobs: Manufacturing (300) and Government (100).

Over the year, Minnesota employers added 46,800 jobs – job growth that was faster than the nation both overall and in the private sector. Supersectors gaining jobs in Minnesota include Education & Health Services (up 28,315), Government (up 12,175), Construction (up 3,924, with especially strong growth in Heavy and Civil Engineering) and Leisure & Hospitality (up 3,930).

 “Minnesota’s labor market started 2025 in a strong position: strong wage growth, high labor force participation, low unemployment and job growth in many key industries,” said *Angelina Nguyen, director of DEED’s Labor Market Information Office.*

Every March, DEED and the U.S. Bureau of Labor Statistics collaboratively release revised employment numbers for the past several years using more comprehensive data. These annual revisions always result in minor shifts in the unemployment rate, labor force participation rate and the job count in the previous year’s monthly data.

Overall, these revisions show Minnesota added more jobs than were initially reported in 2024. This led to improvements to the state’s monthly unemployment rates in the latter months of 2024 and the labor force participation rate throughout the year.

Any time data has been revised from previous reports, this is noted on DEED’s website.

Visit the DEED website to view full state and national employment statistics [ [link removed] ], monthly jobs numbers [ [link removed] ] and further analysis of this month's data [ [link removed] ] and a breakdown of the 2024 revisions [ [link removed] ]. You can also find alternative measures of unemployment [ [link removed] ]. In addition, find related articles about job growth and labor market changes in the latest issue of Minnesota Employment Trends [ [link removed] ]. Access resources to help Minnesotans prepare for and find employment now at CareerForceMN [ [link removed] ]. 

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"Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161."





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