Minnesota Unemployment Hits 5-Year High in January

St. Paul, MN (MinnesotaNow) - Minnesota's unemployment rate in January was the highest it has been in five years and exceeded the national average for the first time in nearly two decades.

The latest jobs report from the Minnesota Department of Employment and Economic Development shows the state's seasonally adjusted unemployment rate rose to 4.4% during the first month of this year. That represents an increase of 0.2 percentage points compared to the rate reported for December.

Highest in 5 Years

The January jobless rate was up a full percentage point from a year ago. State jobs data also shows it was the highest rate reported since January 2021, when it was 4.5%.

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Above the National Jobless Rate

Nationwide, the seasonally adjusted unemployment rate in January was 4.3%. The last time Minnesota's jobless rate was higher than the national average was in May 2007, when unemployment in the state was 4.5% and the U.S. unemployment rate was 4.4%.

Almost No New Jobs

State officials say job growth in Minnesota was flat from December through January, with a net gain of only about 100 jobs. The private sector experienced a loss of approximately 900 jobs, while the government sector gained approximately 1,000 jobs.

During the previous 12 months, Minnesota experienced a net gain of just over 13,000 jobs for a job growth rate of 0.4%. Nationally, overall employment declined 0.2% through 2025.

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