January employment trends for 2026 saw Minnesota’s unemployment rate increase by three-tenths of a percentage point to 4.4% and the labor force participation remained the same at 68.2%, compared to the national rate of 62.1%.
“Our state economy has weathered a number of economic shocks over the last year, and the impact of that now appears to be showing up in the data,” said DEED Commissioner Matt Varilek. “This jobs report reflects the cumulative effect of almost 12 months of turbulence. The national economy has been slowing over the last year, with erratic tariffs and a radical shift in immigration policy taking a toll. No state has borne the brunt of these factors more directly than Minnesota, especially earlier in 2026. That said, I remain optimistic that our economic diversity and resilience will see us through, especially if some of these headwinds fade.”
January 2026 – Unemployment
Year over year/Month over month comparison
- +0.3% from December 2025
- +1.4% from January 2025
“The data are showing signs of a weaker labor market,” said Angelina Nguyen, DEED Labor Market Information director. “We see smaller job growth and a higher unemployment rate than we have in years.”
*Data from US Bureau of Labor Statistics
January 2026 – Jobs Gained
Jobs Gained & Industries Affected
- 5,000 Education & Health
- 3,700 Construction
- 1,000 Government
- 1,100 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.
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