MINNEAPOLIMEDIA NEWS | Minnesota Nonfarm Employment Drops by 1,900 Jobs in July, Snapping Four-Month Growth Trend

SAINT PAUL, MN (August 21, 2026) Minnesota's monthly employment growth experienced its first pullback in five months during July, as nonfarm payrolls contracted by 1,900 positions on a seasonally adjusted basis. Official economic figures released Thursday, August 20, by the Minnesota Department of Employment and Economic Development (DEED) show that private sector employers accounted for 800 of the net lost jobs, snapping a four-month streak of continuous job expansion.

Despite the monthly pullback, state labor economists highlighted strong year-to-date performance, noting that Minnesota employers have added more than 44,000 net nonfarm jobs since January 2026. That year-to-date expansion represents a 1.5 percent growth rate, significantly outpacing the national job creation rate of 0.2 percent over the same seven-month period.

The statewide unemployment rate edged down slightly to 4.3 percent in July, though overall labor force participation experienced a minor contraction. Sectoral data revealed mixed performance across the economy: while manufacturing and construction posted moderate losses during July, health care, social assistance, professional services, and hospitality sectors continued to demonstrate long-term net hiring gains across the state over the past 12 months.

DEED officials noted that short-term monthly fluctuations are common during mid-summer labor shifts and emphasized that regional consumer demand remains solid across the Twin Cities metropolitan area. State workforce agencies are maintaining active job training and placement programs to connect regional job seekers with open positions in high-demand technical, healthcare, and trade sectors.

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