Dolphin Group

The job market in Minnesota entering 2026 can best be described as stable but cooling after several years of unusually tight conditions. The state’s unemployment rate has risen modestly to around 4.1%, up from closer to 3% in 2024, yet it remains slightly below the national average. This gradual increase reflects a broader normalization rather than a downturn, as Minnesota continues to maintain a relatively high labor force participation rate—over 68%, significantly higher than the U.S. average. Employers are still holding onto workers, and layoffs remain limited, but the pace of hiring has slowed compared to the rapid post-pandemic recovery.