Report: Minnesota’s economy saw increased unemployment, slowed growth in July originally appeared on Bring Me The News.
Minnesota’s unemployment increased while other economic indicators showed signs of slowing last month, mirroring national trends.
According to a recent report from the Minnesota Department of Employment and Economic Development, the state’s unemployment rate reached 3.5% in July, marking an increase from 3.3% in June.
Brian Adams/Flickr
Minnesota also lost 4,400 jobs last month, while more than 1,700 residents left the labor force. The state’s latest labor force participation rate is 68.1%.
Nationally, the unemployment rate is reported to be 4.2%, while the labor force participation rate is 62.2%.
The education and health services sectors each gained jobs in July, while the government, professional services, trade, transportation and utilities sectors lost jobs.
Still, DEED noted that Minnesota has gained 35,275 jobs over the year, marking a growth rate of 1.2% — faster than the national rate of 0.9%.
“We may now be seeing results of mass federal layoffs and funding interruptions, erratic tariffs and shrinking immigration,” DEED Commissioner Matt Varilek said in a statement.
“Even so, some of the favorable qualities about Minnesota’s labor market remained consistent in July, with low unemployment, significant wage growth and high labor force participation.”
This story was originally reported by Bring Me The News on Aug 17, 2025, where it first appeared.
