Minnesota unemployment edges down to 4.4 percent in May
Statewide unemployment fell to 4.4 percent, but Minnesota’s labor force kept shrinking as North Shore employers head into summer hiring.
Minnesota’s jobless rate slipped to 4.4 percent in May, but the bigger question for Lake County is whether that statewide improvement reaches the seasonal economy that runs from Two Harbors to Silver Bay. The state added 5,400 nonfarm jobs and 5,900 private-sector jobs, yet its labor force also shrank and participation fell for a sixth straight month.
Minnesota Department of Employment and Economic Development Deputy Commissioner Kevin McKinnon said it is encouraging to see progress “in the middle of an uneven economic environment in both the state and the country.” The May labor market release showed 138,642 Minnesotans unemployed and 2,999,019 employed, with the labor force down to 3,137,661 workers and participation at 67.2 percent.
That rate remains well above the national labor force participation rate of 61.8 percent, even as the state’s headline unemployment figure moved lower by one-tenth of a percentage point from April. The U.S. unemployment rate held at 4.3 percent, unchanged from the prior month and the prior year. The U.S. Bureau of Labor Statistics said rates were lower in May in 6 states, higher in 2 states, and stable in 42 states and the District of Columbia.
For Lake County, the numbers matter less as a statewide snapshot than as a benchmark for the North Shore economy. Tourism and hospitality rely on summer crews, trades rise and fall with construction schedules, and health care and public services need workers who will stay past the busy season. A statewide labor market that is still adding jobs can help those employers recruit, but a declining labor force can make it harder to keep shifts covered and open year-round positions.
Federal labor data tracked by the Federal Reserve Bank of St. Louis include Lake County unemployment figures through March 2026, giving local employers, schools and public officials a county-level series to compare with the May state report. For now, Minnesota’s labor market looks resilient rather than booming, with gains in jobs offset by a smaller pool of workers looking for them.
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