Business
Minnesota unemployment dips to 4.3% as state loses jobs
Minnesota's unemployment rate fell to 4.3% in July, yet the state experienced a loss of 1,900 jobs, sparking debate over the state's true economic health.
By Steijn Leijzer / Unsplash · 2026-08-20T00:02:07.838Z
The Center Square – Minnesota’s unemployment rate edged down slightly in July, even as the state lost jobs.
This is according to a new report from the Minnesota Department of Employment and Economic Development which shows the state's seasonally adjusted unemployment rate fell one tenth of a percentage point to 4.3%.
That means Minnesota has the 19th highest unemployment rate https://mn.gov/deed/data/current econ highlights/state national employment.jsp among the states, a ranking it’s held consistently for the past few months.
On the national front, the unemployment rate also dropped – coming it at 4.1% in July.
It wasn’t all good news for Minnesota though, as the report also found job growth in the state was in the negative as the state lost 1,900 jobs. That was a drop of 0.1%.
Despite that drop, state officials applauded https://mn.gov/deed/newscenter/press releases/?id=1045 764239 Minnesota’s job growth rate over the year of 1.5%, or 44,000.
“While monthly numbers can fluctuate, Minnesota's strong year over year growth shows the resilience of our diverse economy,” said DEED Commissioner Matt Varilek. “We remain focused on connecting Minnesotans with good jobs and helping employers find the workers they need to grow.”
The Walz administration continues to tout the job market in the North Star State, pointing to its recent ranking by CNBC as the third best state for jobs.
Many found that ranking https://www.thecentersquare.com/minnesota/article 9527762b 0348 4ca1 bfb6 ade1d73648ba.html dubious – pointing to everything from Minnesota’s population loss to continued high unemployment.
“This ranking is completely bogus,” said John Phelan, an economist with the Minnesota based Center of the American Experiment. “These rankings … are not correlated in any meaningful way with what businesses actually do, such as start themselves or hire people.”
Still, Walz’ office continues to cite the report.
“The Walz Flanagan administration has helped support more than 35,000 new businesses, nearly 30 percent wage growth, and record job creation, helping Minnesota rank as the third best state for jobs,” it said in a recent statement https://mn.gov/governor/newsroom/press releases/ /detail/appId/1/id/764508 . “Together, these efforts reflect an administration wide commitment to strengthening Minnesota’s business community and supporting growth across the state.”
The drop in Minnesota’s unemployment rate comes after it climbed earlier this year to its highest level in roughly five years during federal immigration operations like Operation Metro Surge.
Estimates cite more than $240 million in lost wages and more than $600 million in business losses due to those federal efforts.
Just last week, Gov. Tim Walz met with small business owners to hear about the “lasting impacts” https://mn.gov/governor/newsroom/press releases/?id=764508 and ongoing recovery efforts.
“Operation Metro Surge's impact on small businesses, workers, and local business districts is still being felt,” Walz said. “We remain committed to supporting local businesses, encouraging Minnesotans to shop local, and continuing conversations through the Council on Recording the Truth of Operation Metro Surge and Operation PARRIS to uplift impacted business owners and communities.”
Elyse Apel, a graduate of Hillsdale College, is a reporter for The Center Square covering Minnesota and Michigan. Her work has appeared in a range of national outlets, including the Washington Examiner , The American Spectator , and The Daily Wire .
This story originally appeared on thecentersquare.com https://www.thecentersquare.com/minnesota/article 92ca2ec6 151b 4f57 9187 da385b9ebf66.html .