December employment trends for 2025 saw Minnesota’s unemployment rate increase by one-tenth of a percentage point to 4.1% and the labor force participation remained the same at 68.2%, compared to the national rate of 62.4%.
“While our unemployment rate remains low by historical standards, its gradual upward rise continues a trend we’ve seen over several months. Chaos and uncertainty associated with the federal government shutdown, erratic tariffs and changes to national immigration policy were already weighing on Minnesota’s economy, and it’s hard to imagine this month’s unprecedented federal actions in Minnesota will be anything but harmful in economic terms,” said DEED Commissioner Matt Varilek. “At DEED, we’ll continue doing all we can to connect workers to good jobs in high-demand fields, providing no-cost services for job seekers statewide, and supporting business attraction, retention and expansion.”
December 2025 – Unemployment
Year over year/Month over month comparison
- +0.1% from November 2025
- +1.1% from December 2024
Minnesota’s unemployment rate increased by one-tenth of a percentage point to 4.1%, staying below the national rate of 4.4%, which decreased by two-tenths of a percentage point from November 2025. The state’s labor force participation remained the same at 68.2%, compared to the national rate of 62.4%.
*Data from US Bureau of Labor Statistics
December 2025 – Jobs Gained
Jobs Gained & Industries Affected
- 3,700 Professional Services
- 2,200 Manufacturing
- 1,700 Government
- 900 Education & Health
- 1,800 Other Services
“In terms of the state’s economic outlook, flat over-the month job growth and a shorter work week are two items we’re tracking,” said Angelina Nguyen, DEED Labor Market Information director.
Key News & Trends
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- 2026 Minnesota HR Salary Guide Release | Versique Learn More
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