December 2025

Released January 27, 2026

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United States

Employment snapshot

• In December, among the 50 states and the District of Columbia unemployment fell in 8, rose in 21, and remained unchanged in 22.

• The highest unemployment rate was 6.7 percent in District of Columbia, and the lowest was 2.2 percent in Hawaii and South Dakota. Nationally, the unemployment rate fell by 0.1 percentage point to 4.4 percent.

• In December, payroll jobs rose in 23 states and fell in 27. The largest payroll job percent increase was 0.4 percent in Delaware and Montana. The largest payroll job percent decline was 0.3 percent in Kansas and Nebraska.

Minnesota

Employment snapshot

• In December, Minnesota remained unchanged with 0 net payroll jobs and the unemployment rate rose by 0.1 percentage point to 4.1 percent. In the prior month, Minnesota added 3,300 net payroll jobs.

• Over the past 12 months, Minnesota added 34,100 net payroll jobs and the unemployment rate rose by 1.1 percentage points from 3 percent.

• Nationally, nonfarm payrolls rose by 50,000 in December, or 0 percent. Minnesota is tied for 7th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• In December, Minnesota’s private sector lost 1,700 net private payroll jobs, and over the past 12 months it added 35,900 private payroll jobs. In the prior month, Minnesota added 3,000 net private payroll jobs.

• In December, employment in Minnesota fell by 3,403, and over the past 12 months it fell by 6,536.

• Minnesota’s labor force participation rate remained steady at 68.2 percent in December and ranks 5th in the nation. In the past 12 months, the labor force participation rate has risen by 0.2 percentage points.

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Minnesota

Payroll employment

• Minnesota remained unchanged with 0 net payroll jobs, or 0 percent, on a seasonally adjusted basis during December. In the prior month, Minnesota added 3,300 jobs. Minnesota nonfarm payroll employment has increased in 8 of the past 12 months.

• Nationally, nonfarm payrolls rose by 50,000 in December, or 0 percent. Minnesota is tied for 7th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• Minnesota lost 1,700 private sector jobs, or -0.1 percent, on a seasonally adjusted basis during December. In the prior month, Minnesota added 3,000 jobs. Minnesota private sector payroll employment has increased in 9 of the past 12 months.

• Nationally, private sector payroll jobs rose by 37,000 jobs in December, or 0 percent. Minnesota is tied for 5th in the nation for percentage gain in private sector payroll employment over the past 12 months.

From November 2025 to December 2025:

• The best performing sectors were Professional and Business Services (+3,700) and Manufacturing (+2,200).
• The worst performing sectors were Construction (-9,900) and Trade, Transportation, and Utilities (-400).

From December 2024 to December 2025:

• The best performing sectors were Private Education and Health Services (+21,500) and Manufacturing (+5,500).
• The worst performing sectors were Financial Activities (-2,500) and Federal Government (-2,100).

Minnesota

Labor force

The labor force participation rate is the percentage of the civilian noninstitutionalized population age 16 and older who are employed or actively looking for work.

• The labor force participation rate in Minnesota remained unchanged at 68.2 percent in December.

• Minnesota ranks 5th in the nation.

• The 10-year high for the labor force participation rate in Minnesota was 70.9 percent in July 2020, and the 10-year low was 67 percent in April 2020.

• The national labor force participation rate fell by 0.1 percentage points to 62.4 percent in December.