The job market in Minneapolis, particularly in the Twin Cities region, is characterized by a robust and competitive landscape. Despite some unevenness, the area boasts one of the lowest unemployment rates in the country. As of recent reports, the unemployment rate in the Minneapolis-St. Paul area is significantly lower than the national average, standing at around 3.0%, which is steady and below the national rate of 4.1%.
The employment landscape is marked by a tight labor force, with various sectors experiencing a surge in job openings. Healthcare, technology, and manufacturing are among the industries seeing increased demand for skilled workers, driven by business expansions and growing operations. However, there has been a slowdown in certain sectors, such as manufacturing, which reported decreased activity.
Employment growth in Minnesota remains solid, with a year-over-year job growth rate of 1.4%, outpacing the national rate of 1.3%. In February 2025, specific industries saw notable job gains, including 2,100 jobs in Education and Health Services, 1,900 in Professional and Business Services, and 600 in Manufacturing.
The recent employment trends indicate a positive labor picture with steady employment, a growing labor force, and robust wage growth. However, the Twin Cities job market did experience its first year of employment contraction since 2020 in 2024, with a loss of 4,900 jobs, primarily due to heavy office-using job losses.
Seasonally, holiday labor needs have become less of a challenge compared to previous years, with retailers reporting improved staffing conditions. Commuting trends have not been significantly impacted, but labor availability has improved, feeling "more normal" according to employers.
Government initiatives continue to support the labor market, with the Department of Employment and Economic Development (DEED) highlighting the strong labor market conditions and solid job growth.
In terms of market evolution, the Twin Cities are expected to gain around 56,225 jobs over the next two years, indicating continued growth despite recent slowdowns.
Key findings include the region's low unemployment rate, strong job growth in key sectors, and an improving labor availability.
Current job openings include positions in healthcare, such as registered nurses and medical assistants; technology roles like software engineers and data analysts; and manufacturing jobs such as production managers and quality control specialists.