A new report from the Minnesota Department of Employment and Economic Development shows the state’s labor market is continuing to grow, but at a much slower pace than in recent years.
The annual Minnesota Economic Trends report says employment remained positive through most of 2025 and into 2026, although job growth has cooled and unemployment has edged higher in several regions.
In southwest Minnesota, researchers say population gains fueled by internation migration are helping grow the workforce, while the economy continues shifting away from manufacturing and toward health care. Across much of the state, health care remains the strongest source of job growth, even as manufacturing, retail and other industries have softened.
DEED says employers and workers alike are adapting to changing workforce demographics, an aging population and evolving labor market demands.
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