Minnesota unemployment steady, fewer job seekers



Minnesota's unemployment rate stayed steady at 4.5 percent in March, which officials say is a good sign. But fewer people are actively looking for jobs.

The state added 800 jobs on a seasonally-adjusted basis between February and March, which was essentially no growth, according to a new report from the Minnesota Department of Employment and Economic Development. That’s following a decline of 6,100 jobs in February.

But the percentage of people that either have a job or are actively looking for one, known as the labor force participation rate, ticked down last month to 67.6 percent. The labor force participation rate was still higher than the nation’s, but DEED officials say the drop in March was “bigger than usual.”

DEED Commissioner Matt Varilek said the shifts can’t be attributed to any single factor, but the state is still recovering from this year’s surge in immigration enforcement.

“I'm pleased to see some initial signs of stabilization in both the unemployment and jobs numbers,” Varilek said. “I continue to believe there's a long road of recovery yet ahead of us with regard to jobs.”

Businesses are also dealing with rising energy costs from the Iran war, uncertainty around tariffs and an aging workforce, said Angelina Nguyễn, director of DEED’s Labor Market Information Office.

“I don't see companies jumping to expand their operations or hire aggressively,” she said. “And some sectors are more affected than others.”

Changes in employment were mixed across the state's “supersectors” — five gained jobs and five lost jobs between February and March, while one, the mining and logging sector, had no change.

The professional and business services sector added the most jobs, 1,600, up 0.4 percent, and construction gained 1,100 jobs, up 0.8 percent.

Minnesota's leisure and hospitality sector saw its third consecutive month of job losses in March, dropping 0.8 percent.

“We still have a relatively difficult national economic environment, which does present a challenge for us as we are trying to pull ourselves out of the situation caused by Operation Metro Surge,” he said.

Job growth in Minnesota increased on an annual basis, with payrolls growing by about 9,000 jobs or 0.3 percent between March 2025 and last month.



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A Republican lawmaker charged in an alcohol-related driving offense won’t have to appear in court again until after the Legislature adjourns for the year.

A June 10 arraignment hearing is set for Rep. Elliott Engen, a Lino Lakes Republican who faces three misdemeanor charges following an arrest early Friday. He was stopped for speeding and other infractions in White Bear Lake; officers detected alcohol and he later tested well above the legal limit for driving, according to a citation.

Engen has apologized for a lapse in judgment; he promised to learn from his actions and “do better.” Aside from being a second-term legislator, he is also a candidate for state auditor.

A second lawmaker, GOP Rep. Walter Hudson, was in Engen’s truck at the time of the stop and an open bottle of alcohol was found in a rear seat. Hudson, a second-term legislator from Albertville, was in possession of a permitted handgun, which could cause him legal problems if he is determined to have been intoxicated.

Police officers wrote in their report that Hudson disclosed he had the gun as the truck was being searched. The report said police took the firearm for safekeeping and said he could pick it up at a later time, which Hudson agreed to.

“I regret the poor decisions that were made during this incident, and commend the White Bear Police Department for their professional response,” Hudson said in a written statement. “I’m grateful that no harm was done to ourselves and others.”

Two lawmakers stand and look around
Rep. Walter Hudson, R-Albertville, (center) and Rep. Bidal Duran, R-Bemidji, (right) join other Republican lawmakers gather in the House chambers Jan. 27, 2025.
Tim Evans for MPR News file

A third, unidentified passenger was in the truck as well, according to police. Hudson and that person were transferred to the police department until they could arrange rides.

The Minnesota lawmakers had been at the Capitol late into the evening Thursday as the House debated procedural motions on gun, immigration and social media legislation. The motions failed on 67-67 votes.

There is no indication yet that either Hudson nor Engen had been drinking on Capitol grounds, which would be a violation of a House rule against consumption of alcohol or drugs in spaces under that chamber’s control.

According to a White Bear Lake Police report, Engen initially said he had not been drinking when asked by the police officer who pulled him over — “nothing at all,” he is quoted as saying. He performed a field sobriety test, which the report says showed signs of impairment.

Engen gave a preliminary breath sample there, the report says, which estimated a 0.142 blood alcohol level. After he was taken by squad car to the police department “Engen spontaneously stated, ‘Sir, I had a drink three hours ago,’” the report says.

He told the Minnesota Star Tribune in an interview Monday that he had also consumed alcohol in the afternoon on Thursday as well.

Engen is charged with two impaired driving offenses and speeding. White Bear Lake police also said he was driving a vehicle with expired registration and an inoperable headlight.

Engen has not returned calls from MPR News. A court docket lists a “notice of appearance” on Tuesday.

He is being represented in the criminal case by Chris Madel, an Excelsior attorney who waged a brief Republican campaign for governor.



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