July employment trends for 2025 saw Minnesota’s unemployment rate increase by two-tenths to 3.5% and the labor force participation drop to 68.1%, compared to the national rate of 62.2%.
“We may now be seeing results of mass federal layoffs and funding interruptions, erratic tariffs and shrinking immigration,” said DEED Commissioner Matt Varilek. “Even so, some of the favorable qualities about Minnesota’s labor market remained consistent in July, with low unemployment, significant wage growth and high labor force participation.”
July 2025 – Unemployment
Year over year/Month over month comparison
- +0.2% from June 2025
- ±0.0% from July 2024
Minnesota’s unemployment rate increased by two-tenths of a percentage point to 3.5%, staying below the national rate of 4.2%, which increased by one-tenth of a percentage point. The state’s labor force participation rate dropped to 68.1%, compared to the national rate of 62.2%.
*Data from US Bureau of Labor Statistics
July 2025 – Jobs Lost
Gained Lost & Industries Affected
- 3,500 Government
- 2,300 Professional & Business
- 2,100 Trade & Utilities
- 600 Financial Activities
- 2,100 Other Services
“There are some signs of the job market slowing down but Minnesota’s economy is still stable,” said Angelina Nguyen, DEED Labor Market Information Director. “Some of our key indicators trended down, such as labor force size and unemployment – but others are consistent with previous months, such as steady over-the-year job growth and very strong wage growth.”
Key News & Trends
- Minnesota economy strong but slowing as shifting federal policy creates uncertainty | MPR News Learn More
- These jobs are hiring, despite a weak job market | ABC News Learn More
- Minnesota’s Mid-Year Employment Update | Versique Learn More
