St. Cloud Area Posts Job Losses in Latest State Employment Report

(KNSI) – The City of St. Cloud faces an unusual economic contradiction in December 2025 with an unemployment rate of just 4.2%, yet it’s the only major Minnesota metro area losing jobs.

The data comes from the Minnesota Department of Economic Development December 2025 Employment Analysis report. It states that St. Cloud lost 452 jobs over the past year, a 0.4% decline, while maintaining what appears to be a healthy unemployment rate. With 37,559 people in the labor force and 36,035 employed, only 1,564 residents are actively looking for a job.

The numbers stand in stark contrast to the rest of Minnesota. Rochester grew by 4.3%, Mankato by 3.0%, and even Minneapolis-St. Paul added 0.6%. Statewide, Minnesota gained 37,143 jobs, a 1.2% increase, while the nation grew by 0.3%.

The unemployment rate only counts people actively seeking work and misses those who’ve left the labor force entirely, whether through retirement, relocation, or giving up the job search. Job losses measure something different, the total number of positions available in the economy. When St. Cloud lost 452 jobs, it meant 452 fewer opportunities existed, regardless of whether the unemployment rate reflected it.

The data doesn’t reveal which industries drove St. Cloud’s decline. While Minnesota saw education and health services add 21,492 jobs statewide and financial workers cut, there’s no industry breakdown specific to St. Cloud that would explain its trajectory.

According to the analysis, St. Cloud’s low unemployment rate paired with job losses may signal a shrinking economic base rather than genuine health. If both jobs and the labor force are contracting together, you can maintain low unemployment even as the economy weakens what’s called a form of “hidden unemployment.”

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