Rochester Area Employment Flat as Minnesota Adds Jobs

Rochester, MN (KROC-AM News) - The Rochester area job market remains stagnant.

Rochester Area Employment Remains Nearly Unchanged

The latest jobs report from the Minnesota Department of Employment and Economic Development indicates overall employment levels in the Rochester area last month were essentially unchanged compared to August 2025.

Mankato Leads Minnesota in Job Growth

Mankato reported the strongest job growth rate in the state at 3.9%, with a year-over-year gain of nearly 2,200 jobs. The Twin Cities area added more than 27,500 jobs over the past year for a job growth rate of 1.4%.

Duluth and St. Cloud See Employment Declines

Both Duluth and St. Cloud saw modest job declines over the 12-month period. Overall employment in the St. Cloud area declined by just under 900 jobs, while Duluth's employment levels were slightly below those reported a year ago.

MN DEED

Minnesota Adds More Than 44,000 Jobs

The entire state added just over 44,000 jobs during the past year. That works out to an annualized job growth rate of 1.5%, which is three times higher than the national average.

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The jobs data indicates Minnesota saw a net gain of approximately 1,500 jobs in August, while the seasonally adjusted unemployment rate rose a tenth of a percentage point to 4.4%. A year ago, the state's jobless rate was 3.9%.

Labor Force Participation Rate Falls to 66.8%

Minnesota's labor force shrank by a little over 2,500 people in August and now totals about 3.1 million. The labor force participation rate dropped a tenth of a point to 66.8%. The report notes that, by comparison, the labor force participation rate was up to 70% just before the start of the COVID-19 pandemic.