Rochester Sees First Year-Over-Year Job Losses Since Pandemic

Rochester, MN (KROC-AM News) - The latest job statistics from the Minnesota Department of Employment and Economic Development show the Rochester area experienced a year-over-year decline in employment for the first time since the economic shock created by the COVID-19 pandemic lockdown.

Negative March Jobs Report

The numbers for the month of March indicate overall employment in the Rochester Metropolitan Statistical Area shrank by 95 positions compared to March 2025. The one-tenth of a percentage point decline was the smallest reported for the state’s largest cities, but it followed years of employment gains that had Rochester leading the state in job growth.

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Jobs Data Revisions

The significant shift in the employment numbers reflects major revisions to the job statistics that were previously published for 2025. At the end of last year, the Department of Employment and Economic Development initially reported that the Rochester area had seen employment increase by more than 6,800 jobs for an annualized job growth rate of 5.4%.

The revisions, which were posted this month and are not adjusted for seasonal factors, reduced the job gains for all of last year in the Rochester area to a little over 900, for a job growth rate of only 0.7%.

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Larger Job Losses and Other Minnesota Cities

The jobs report for March shows the Twin Cities area has seen overall employment shrink by nearly 1,800 positions over the past year, while the Duluth area experienced a 1.2% decline, representing a loss of more than 1,500 jobs. Year-over-year job losses in the St. Cloud area were estimated at just below 1,000, and the Mankato area saw its employment fall by more than 200 jobs.

The statewide job growth rate now stands at only 0.3%, with the report estimating that employment across the entire state grew by a little more than 9,200 jobs during the past 12 months.

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Statewide Unemployment Rate Steady

Minnesota’s seasonally adjusted unemployment rate in March was steady at 4.5% and remained above the national jobless rate of 4.3%. Minnesota’s job growth rate in March was flat, with a net gain of just 800 nonfarm jobs. The report also shows Minnesota’s labor force participation rate fell three-tenths of a percentage point to 67.6% last month.

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