August employment trends for 2026 saw Minnesota’s unemployment rate tick up one-tenth of a percentage point to 4.4%, and the labor force participation dropped by one-tenth of a percentage point to 66.8%, compared to the national rate of 61.6%.
“Minnesota employers continued to show remarkable resilience in August, delivering a small monthly gain and an annual growth rate well in excess of the nation as a whole, despite the many headwinds we’ve faced this year,” said DEED Commissioner Matt Varilek. “On the other hand, our slightly elevated unemployment rate and decline in overall labor force size add up to a mixed picture for this month’s report as a whole.”
August 2026 – Unemployment
Year-over-year/Month-over-month comparison
- +0.1% from July 2026
- +0.5% from August 2025
Minnesota’s unemployment rate ticked up one-tenth of a percentage point to 4.4% in August, and the labor-force participation rate ticked down one-tenth of a percentage point to 66.8%, compared to the national rate of 61.6%.
*Data from US Bureau of Labor Statistics
August 2026 – Jobs Gained
Jobs Gained & Industries Affected
- 2,200 Manufacturing
- 1,200 Government
- 300 Leisure & Hospitality
- 300 Professional & Business Services
- 100 Construction
- 100 Mining & Logging
“The August numbers continue to show a mixed labor-market picture,” said Angelina Nguyen, DEED Labor Market Information Director. “Minnesota’s 1.5% annual job growth remains substantially stronger than the national rate, and eight of 11 major industry sectors have added jobs over the year. At the same time, the decline in labor-force participation and slower wage growth are important indicators that we will continue to watch.”
Key News & Trends
- How Are CFOs Navigating 2027 Planning? | Versique Learn More
- Minnesota’s Growth Depends on Talent | Versique Learn More
- 6 Signs Your Organization Needs a Fractional HR Consultant | Versique Learn More
