I recently joined CBS News Minnesota to talk about how Minnesota’s labor market closed out 2025 and what may lie ahead in 2026. That conversation reflects many of the same questions I’m hearing every day from employers and professionals across the state.
As we move into 2026, many Minnesota professionals are entering the year with mixed emotions. Headlines continue to focus on layoffs at large national employers, creating understandable concern. At the same time, the data and what we are seeing on the ground point to a more balanced and nuanced labor market than the headlines alone suggest.
The reality is that Minnesota ended 2025 stronger than many expected, and early indicators show that momentum carrying into the new year.
A Stronger Finish to 2025 Than the Headlines Suggest
While 2025 brought its share of volatility, Minnesota added approximately 10,000 jobs in December alone. That late-year growth helped stabilize what had been a choppy labor market and gave both employers and job seekers a more confident starting point for 2026.
National layoffs, particularly among large corporations, continue to dominate the news cycle. Reductions at companies like Amazon, Target, and UPS understandably grab attention. However, those high-profile announcements do not tell the full story of what is happening across Minnesota’s workforce.
The Rise of “Forever Layoffs” and What They Mean
Beyond major corporate announcements, we also saw an increase in what are often referred to as “forever layoffs” in 2025. These are smaller, recurring reductions, often impacting 25 to 50 employees at a time, happening more quietly but more frequently across organizations.
While less visible, these types of layoffs can create ongoing uncertainty for employees who remain, leaving many wondering what might come next. That uncertainty has influenced how professionals approach career decisions and how organizations think about workforce planning heading into 2026.
Where Minnesota Is Adding Jobs in 2026
Despite continued restructuring in some sectors, job growth is happening in several key areas across the state. We are seeing employers actively add roles in construction, manufacturing, and healthcare.
These industries continue to drive demand as organizations invest in infrastructure, production, and essential services. For professionals with experience or transferable skills in these areas, opportunities remain strong, particularly for those who can step in and contribute quickly.
Minnesota Paid Leave Is Reshaping Workforce Planning
One of the most significant shifts influencing hiring decisions in 2026 is the implementation of Minnesota’s Paid Leave program. As employees begin to take job-protected leave, employers are being challenged to think differently about coverage, continuity, and flexibility.
At Versique, we are seeing increased demand for interim talent across human resources, finance and accounting, and information technology. Organizations are using interim professionals to maintain momentum, fill skill gaps, and ensure stability while employees are on leave. This is a trend we expect to continue as employers adapt to new workforce realities.
What Job Seekers Are Asking Most Right Now
For professionals exploring new opportunities in 2026, two questions come up consistently: how can I stand out, and how long is it going to take to find a new role?
In many cases, the job search timeline has lengthened. There is more competition in the market, and employers are being more deliberate with hiring decisions. Many organizations are weighing internal talent movement and creative staffing solutions alongside external hiring before moving forward.
How to Stand Out in a More Competitive Market
In a more competitive environment, differentiation matters more than ever. A few strategies continue to make a real difference for job seekers:
- Clearly define and communicate your personal brand
- Tailor your resume to highlight the skills most relevant to each role
- Invest time in networking and reconnecting with your professional community
- Stay open to creative paths, including interim or project-based opportunities
Employers are looking for professionals who can solve specific problems, adapt quickly, and add value from day one.
Looking Ahead
While uncertainty remains part of the labor market conversation, Minnesota enters 2026 with more resilience than the headlines alone might suggest. Job growth, evolving workforce strategies, and new opportunities driven by Paid Leave and interim solutions are shaping a market that rewards adaptability on both sides of the hiring equation.
Whether you are an employer planning for the year ahead or a professional considering your next move, understanding these shifts will be key to navigating what comes next.
