Minnesota added 1,500 jobs in August and the state unemployment rate ticked up one-tenth of a percentage point to 4.4%, according to data released Thursday by the Minnesota Department of Employment and Economic Development.
Minnesota’s labor force decreased by 2,521 people over the month, or 0.1%. The number of employed Minnesotans decreased by 3,840, while the number of unemployed increased by 1,319. The state’s labor-force participation rate ticked down one-tenth of a percentage point to 66.8%. This measures the number and percentage of people either working or actively seeking work, and is used to calculate the headline unemployment rate.
Over the month, Minnesota’s 1,500 added nonfarm jobs was effectively flat at 0.0%. The private sector gained 300 jobs, also effectively flat.
“Minnesota employers continued to show remarkable resilience in August, delivering a small monthly gain and an annual growth rate well in excess of the nation as a whole, despite the many headwinds we’ve faced this year,” said DEED Commissioner Matt Varilek in a news release. “On the other hand, our slightly elevated unemployment rate and decline in overall labor force size add up to a mixed picture for this month’s report as a whole.”
Average hourly wages for Minnesota private-sector workers increased 28 cents over the month to $39.67.
Exports rise
Also Thursday, DEED said Minnesota exports of agricultural, mining and manufactured goods were valued at $6.6 billion in the second quarter of 2026, a 14% increase (up more than $800 million) over the second quarter of 2025.
Minnesota’s second quarter growth in exports was fueled by gains in North America ($2.6 billion, up 23%), Europe ($1.5 billion, up 11%; led by Austria, Germany and Belgium) and Asia ($1.7 billion, up 6%). In North America, exports to Mexico showed continued strength (up $306 million or up 34%) and exports to Canada rebounded (up $178 million or up 14%).
All of Minnesota’s top 10 exports product categories showed growth in the second quarter, DEED said, including solid growth in the top three: optic and medical products ($1.2 billion, up 7%), electrical equipment ($1.2 billion, up 21%; led by Canada and Mexico) and machinery ($968 million, up 13%; led by Mexico and Canada).