Minneapolis' Resilient Job Market: Diverse Sectors, Upskilling Needs, and Gen Z Challenges

Minneapolis has maintained a resilient and diverse job market through 2025, drawing both experienced professionals and new graduates, although younger job seekers increasingly face heightened challenges landing employment. According to Axios, about 21 percent of Minnesotans aged 65 and older remain employed, reflecting a trend where seniors are staying in or returning to the workforce at rates above the national average. Major employment sectors in Minneapolis include healthcare, retail, education, technology, financial services, and manufacturing. Institutions like the University of Minnesota, Target, Hennepin Healthcare, U.S. Bank, and the State of Minnesota remain prominent employers, while the city’s strong public sector presence also offers opportunities well-suited to older workers, especially in administration and education. Newer drivers of job creation include tech, IT services, and the renewable energy sector, with public and private partnerships emphasizing retraining and upskilling for both the current and future workforce.

The latest data from the Bureau of Labor Statistics and State of Minnesota sites in fall 2025 indicates that Minneapolis’ unemployment rate is hovering near 4 percent, close to pre-pandemic lows, despite slowing job additions. The city’s three-month average of monthly job gains fell from 232,000 in January 2025 to just 29,000 by August, signaling a cooling market and increased competition for open positions. Gen Z workers, especially new graduates, report major difficulties securing full-time roles, with youth unemployment at 10.8 percent as of July 2025 and Black Americans facing rates above 7 percent, according to the Star Tribune and recent comments by Federal Reserve Chair Jerome Powell.

Commuting patterns have adapted post-pandemic, with ongoing remote and hybrid roles shifting traffic volumes and increasing demand for flexible workspace. Public transit usage, while down from historic highs, remains integral for lower-income and older workers. Government initiatives such as the Senior Community Service Employment Program and targeted IT and skills training by Minnesota IT Services aim to bridge talent gaps, especially in technology and management analysis. Artificial intelligence is reshaping job descriptions, especially in retail and logistics, with employers like Walmart and local firms launching AI skills programs to future-proof their workforce.

Minneapolis experiences typical seasonal employment swings, with summer upticks in hospitality and events and winter increases in healthcare and retail support. The city’s labor market continues to evolve as immigration slows and federal economic policies shift. While manufacturing saw significant job cuts nationwide due to tariffs and slowing growth, Minneapolis’ diversification shields it better than many Midwest peers, though data on small business hiring remains difficult to gather in real time.

Key findings are the market’s demographic split, ongoing upskilling needs, and its above-average resilience in both private and public sectors. As of late September 2025, current openings in Minneapolis include IT Operations roles at Minnesota IT Services closing October 6, Management Analysis positions closing October 3, and various full-time Legal and Labor Relations opportunities, all posted on the State of Minnesota careers portal.

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This content was created in partnership and with the help of Artificial Intelligence AI