Minnesota Wages Flat as Inflation Hits 3.7%, Jobs Fall in September

(KNSI) — Minnesota lost jobs in September, but the state’s job growth over the past year still outpaces the nation, according to new numbers from the Minnesota Department of Employment and Economic Development.

The state shed 4,600 jobs over the month, or 0.1%, with the private sector down 5,000. The unemployment rate rose one-tenth of a percentage point to 4.5%, while the national rate also ticked up one-tenth to 4.2%. Over the past year, Minnesota’s job count grew 1.2%, compared with 0.3% nationally.

Five sectors added jobs in September: manufacturing, construction, leisure and hospitality, government and financial activities. DEED Commissioner Matt Varilek says manufacturing posted the biggest gain, noting October is Manufacturing Month and the industry contributed $61 billion to the state economy last year. He says more than 92,000 manufacturing job openings are projected through 2034.

Pay did not keep up with prices. DEED says average hourly earnings in Minnesota did not change over the past year, while inflation was 3.7%.

The state’s labor force grew by 843 people in September, an initial sign of reversal after a decline. The labor force participation rate fell one-tenth of a point to 66.7%, while the national rate rose to 61.8%.

Nguyen says Minnesota continues to outperform national trends on year-over-year numbers. She says this is the ninth straight month the state’s unemployment rate has been higher than the national rate, and that DEED will keep watching the measure, especially when annual data are revised in early 2027.

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