MANKATO — Minnesota added over 44,000 jobs in the past year.
The state’s job growth continues to outpace the national rate, according to July data released Thursday by the Minnesota Department of Employment and Economic Development.
Statewide, Minnesota’s total nonfarm employment increased 1.5% over the year, compared with a 0.2% increase nationally. Minnesota’s private sector also grew 1.5% over the year, compared with 0.5% nationally.
Total nonfarm employment in the Mankato-North Mankato Metropolitan Statistical Area reached about 58,660 in July, up 4.5% from July 2025, according to DEED. Employment was down 0.8% from June. Private-sector employment totaled a shade over over 49,000 jobs in July, up 3.2% from a year earlier and unchanged from June. The area’s last recorded unemployment rate was 4.4%.
Minnesota lost 1,900 nonfarm jobs, or 0.1%, from June to July on a seasonally adjusted basis, the report states and private-sector employment declined by 800 jobs over the month, effectively remaining flat. Nationally, nonfarm employment decreased by 23,000 jobs from June, also effectively flat, while private-sector employment increased by 30,000 jobs.
“Despite a number of headwinds, Minnesota employers have added more than 44,000 jobs over the year, with growth across a broad range of industries,” DEED Commissioner Matt Varilek stated in the release. “While monthly numbers can fluctuate, Minnesota’s strong year-over-year growth shows the resilience of our diverse economy. We remain focused on connecting Minnesotans with good jobs and helping employers find the workers they need to grow.”
Minnesota’s unemployment rate was 4.3% in July, down one-tenth of a percentage point from June, compared to the national unemployment rate which also declined one-tenth of a percentage point, to 4.1%.
The state’s labor force decreased by about 4,000 people from June and the national labor force declined by 264,000 people. Minnesota continued to have one of the highest labor force participation rates in the country, according to DEED.
The July figures marked the fourth consecutive month in which Minnesota’s over-the-year job growth exceeded the national rate, according to the report.
Eight of the state’s 11 major industry sectors added jobs over the year. Education and health services, construction, manufacturing and professional and business services were among the industries contributing to the state’s annual employment gains, according to DEED. Other industries also posted gains, while declines in some sectors offset part of the overall increase.
The employment picture varied across Minnesota’s metropolitan areas.
In the St. Cloud area, total nonfarm employment was about 108,000 in July, down 0.5% from July 2025 and down 0.9% from June. Private employment was about 94,800, down 0.2% from a year earlier and up 0.2% from the previous month. Rochester had about 129,500 nonfarm jobs in July, up 0.3% from a year earlier and down 0.4% from June. Private employment totaled about 115,700, down 0.1% from both July 2025 and June.
The Minneapolis-St. Paul metropolitan area had more than 2 million nonfarm jobs in July, up 1.4% from a year earlier and down 0.8% from June. Private employment was about 1.7 million, up 1.3% over the year and 0.1% from the previous month.