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# Minnesota Adds 1,500 Jobs as Unemployment Rises to 4.4%
- URL: https://www.theamericanquorum.com/state-news-minnesota-2026-09-18-b/
- Published: 2026-09-19T02:46:26.000Z
- Updated: 2026-09-19T02:46:26.000Z
- Description: Minnesota added an estimated 1,500 payroll jobs in August and 43,900 over the year, but unemployment rose to 4.4% as resident employment fell by about 3,800 and the labor force contracted.
- Author: News Desk
- Tags: State News, Minnesota

Minnesota employers added an estimated 1,500 payroll jobs in August and 43,900 over the past year, but the state unemployment rate rose to 4.4% as resident employment and the labor force both declined.

The civilian labor force decreased by 2,521 people to 3.125 million, while the number classified as unemployed increased by 1,319 to 137,026, according to the [federal household survey](https://www.bls.gov/news.release/laus.t01.htm?ref=theamericanquorum.com) released September 18\. The estimated number of employed Minnesota residents fell by about 3,800 to 2.987 million.

Minnesota’s unemployment rate moved up from 4.3% in July and 3.9% in August 2025\. The [monthly federal series](https://fred.stlouisfed.org/series/MNUR?ref=theamericanquorum.com) shows the rate has remained between 4.3% and 4.5% since April. The August reading was three-tenths of a percentage point above the 4.1% national rate.

The year-over-year household figures carry a sharper warning. Minnesota’s labor force was 52,273 smaller than in August 2025, and estimated resident employment was down by roughly 63,800\. The number unemployed increased by about 11,500\. Those changes indicate that the higher rate reflects both fewer employed residents and a smaller pool of people working or actively seeking work.

The separate employer survey was more favorable. Total nonfarm payrolls increased from 3.067 million in July to 3.069 million in August, the [industry tables](https://www.bls.gov/news.release/laus.t03.htm?ref=theamericanquorum.com) show. Manufacturing added about 2,200 jobs and government payrolls rose by approximately 1,200\. Professional and business services and leisure and hospitality each added roughly 300.

Those gains were partly offset by a loss of about 1,400 jobs in trade, transportation and utilities and a decline of roughly 800 in education and health services. Financial activities shed about 200 jobs, while construction was nearly unchanged.

Compared with August 2025, Minnesota payroll employment grew 1.5%, one of only eight statistically significant state gains identified in the [national release](https://www.bls.gov/news.release/laus.nr0.htm?ref=theamericanquorum.com). Education and health services accounted for about 16,800 of the additional jobs. Construction was up roughly 7,100, manufacturing increased by about 10,600 and government added approximately 6,900.

The two surveys measure different populations. Household estimates count Minnesota residents, including people who are self-employed, while payroll estimates count jobs located at Minnesota workplaces and can count one person more than once. Monthly estimates are preliminary and may be revised.

For employers and state officials, the divergence matters. Payroll growth shows businesses continued adding positions, but a smaller resident workforce can constrain hiring and tax-base growth if it persists. It can also reflect retirement, migration or people stopping their job searches, none of which is captured by the unemployment rate alone.

Minnesota published its August state estimates on September 17, consistent with the [DEED calendar](https://mn.gov/deed/data/lmi-help/release-schedule/?ref=theamericanquorum.com). September state data are scheduled for October 15, followed by substate figures October 20\. The next report will clarify whether August’s payroll growth can continue while resident employment and labor-force participation stabilize.