Overview
- DEED’s May report shows Minnesota added 5,400 nonfarm jobs and the unemployment rate fell to 4.4%, reflecting a small month-to-month improvement.
- Private-sector hiring drove the gain with Leisure and Hospitality adding about 2,400 jobs and Construction adding about 2,100 jobs in May.
- The state’s labor force participation declined to 67.2%, a drop for the sixth straight month that means fewer people are available to fill openings.
- Minnesota’s over-the-month job growth outpaced the national rate for a second consecutive month even after an early-2026 loss of 6,400 jobs and two-month rebounds of 19,000 and 23,900 jobs in later windows.
- DEED officials cited investments in upskilling and pointed to national trends such as lower immigration and rising retirements; recent data also show average hourly pay slid 0.5% year-over-year and hiring may be taking longer for many jobseekers.