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Minnesota Unemployment Rises to 4.4% in January - Minneapolis / St ...

DEED said tariffs and stepped-up immigration enforcement helped push the state’s labor force lower as private employers cut jobs and wages fell.

  • On Thursday, the Minnesota Department of Employment and Economic Development reported the state's unemployment rate rose to 4.4% in January, exceeding the national mark of 4.3% while job growth remained flat with just 100 jobs gained.
  • DEED Commissioner Matt Varilek attributed the economic turbulence to "erratic tariffs and a radical shift in immigration policy," citing the cumulative effect of 12 months of volatility affecting Minnesota's economy.
  • Operation Metro Surge, a federal immigration enforcement initiative, disrupted local communities and contributed to significant losses including 4,000 jobs in leisure and hospitality, while Minneapolis officials estimated a $203.1 million hit to the local economy.
  • Minnesota's labor force shrank by 4,562 people to just over 3.17 million in January, while the labor force participation rate declined to 68.2%, reflecting broader economic uncertainty.
  • Catching up on federal shutdown delays, the Bureau of Labor Statistics will release February and March jobs reports on April 16 and April 30, respectively.
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Unemployment rate jumps in Minnesota, highest in five years

(The Center Square) – Minnesota’s unemployment rate rose in January to its highest level in five years, as job growth stalled and state leaders pointed to economic disruptions tied to recent federal immigration operations.

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KARE broke the news in Minneapolis, United States on Thursday, April 2, 2026.
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