Minnesota employers added 4,100 jobs this past December, and the state’s labor force grew by 3,300 job seekers, according to data released today by the Department of Employment and Economic Development (DEED). Minnesota has experienced job growth for six consecutive months and has added jobs in 10 out of the last 12 months.
The state’s unemployment rate decreased by two-tenths of a percentage point to 3.3% in December, according to DEED. Nationally, the unemployment rate declined by one-tenth of a percentage point to 4.1%. Minnesota’s labor force participation rate remained steady at 67.8%, which is consistent with the national rate of 62.5%.
“Employers continue to create good-paying jobs, and more Minnesotans are entering the job market this month—two positive indicators for Minnesota’s economy,” said DEED Commissioner Matt Varilek. “Minnesota is also witnessing high wages, increasing exports, and significant business expansions in key industries throughout the state. Our economy has gained momentum, and we are planning to maintain it in 2025 through targeted workforce development investments and continuous support for businesses aiming to launch, expand, and create jobs across Minnesota.”
DEED said job gains in December were primarily driven by two sectors: Education and Health Services, which added 5,100 jobs, and Government, which added 4,300 jobs. Within those sectors, Education and Health Services experienced rapid growth in Health Care and Social Assistance jobs (up 4,600), while Government hiring was primarily driven by local government units (up 3,700). Overall, the private sector in Minnesota lost 200 jobs during the month.
Over the past year, nearly 10,000 Minnesotans reportedly joined the labor force. During this period, Minnesota gained almost 37,500 payroll jobs, reflecting a growth rate of 1.3%, compared to 1.4% nationally. The private sector added 17,302 jobs, a 0.7% increase, compared to 1.3% nationally.
Four supersectors in Minnesota gained jobs over the year: Education and Health Services (up 41,090), Government (up 20,196), Leisure and Hospitality (up 1,099), and Construction (up 196). Other sectors saw declines, with the most significant drops in Professional and Business Services (down 11,856) and Manufacturing (down 4,107).
“There is positive news in this month’s report, including ongoing job growth, increases in the labor force, and strong wages,” said Labor Market Information Director Angelina Nguyen. “What we want to see in the year ahead is continued steady growth in both the public and private sectors.”
Average hourly wages for private sector workers continue to rise. Over the past year, average hourly earnings increased by $1.98, reflecting a 5.4% growth rate, compared to a national average growth of 4.6% and an inflation rate of 2.9%.
