Minnesota Job Market Shows 'Impressive Resilience' Amid Federal Government Instability

ST. PAUL, MN — Minnesota employers added 10,700 jobs in March, the state’s largest monthly gain in a year, as the state economy showed "impressive resilience" despite growing federal government instability and tariff uncertainty, according to new data from the Department of Employment and Economic Development (DEED).

Minnesota’s overall job growth rate last month was four times faster than the national average, the private sector grew twice as fast, and more than 2,700 Minnesotans joined the labor force.

The state’s unemployment rate rose slightly to 3.1 percent but remained well below the 4.2 percent national rate.

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"Minnesota’s job market has shown impressive resilience in the face of unprecedented uncertainty from the federal government," said DEED Commissioner Matt Varilek in a statement.

"This month we added jobs at a much faster rate than the nation as a whole as employers continue hiring, and more Minnesotans joined the labor force to look for work. We stand ready to help employers and workers alike as we navigate the unique challenges we’re facing."

Eight of Minnesota’s 11 major industries added jobs in March, led by construction (up 1,900 jobs, or 1.4 percent) and local and state government hiring (up 1,500 jobs).

Federal employment remained steady. Officials noted that recent federal mass layoff announcements are not yet reflected in the data, as workers remain on payroll until formally separated.

Over the past year, Minnesota gained 37,581 jobs, outpacing the national growth rate.

Rochester, Minnesota, saw especially strong growth, adding 5,790 jobs over the year, a 4.7 percent increase, driven by gains in health care, retail, public administration, transportation, hospitality, and education.

"Minnesota has a diverse economy, allowing us to weather shifts in broader macroeconomic trends," said Angelina Nguyen, director of DEED’s Labor Market Information Office.

"Overall, it’s reassuring that we have a strong job market in Minnesota despite the headlines we’re seeing nationally."