Minneapolis Job Market: Resilience Amid Challenges

The job market in Minneapolis is currently experiencing both challenges and resilience. According to WalletHub, Minnesota holds third place nationally for jobs as of 2025, acclaimed for job opportunities, employment growth, and strong median household incomes near $86,000 adjusted for cost of living. State unemployment stands at 3.6 percent, one of the lowest in the country, as reported by the Minnesota Department of Employment and Economic Development. However, Minneapolis recently faced significant shocks, notably widespread layoffs at Target, a major employer headquartered in the city. Modern Retail reports these layoffs have affected hundreds in engineering, product design, analytics, merchandising, and HR, with additional reductions at Amazon and Cargill. These events have introduced a wave of highly skilled professionals back into the local job market.

Despite these setbacks, staffing leaders such as The Right Staff note that the region's job market shows growing optimism for hiring into 2026, especially as smaller and mid-sized firms absorb talent from departing large-company employees. According to the Federal Reserve Bank of Minneapolis, employment growth has slowed statewide in 2025, in part due to reduced net migration, broader economic cooling, and a decline in labor force participation as some discouraged job seekers stop searching. Median real wage growth, which was robust at 3.6 percent annually in previous years, has dropped to about 2.1 percent in 2025, with low-wage workers experiencing an even sharper slowdown.

Employment in Minneapolis remains diverse and dynamic. The largest sectors include healthcare, education, retail, business services, financial services, technology, and manufacturing. Leading employers span Target, U.S. Bank, Wells Fargo, Hennepin Healthcare, and the University of Minnesota. Technology and green energy remain growing sectors, alongside ongoing demand in healthcare, logistics, and data analytics. The city has seen increased interest in remote and hybrid work, though some large employers, such as Target, recently required a return to three days per week in the office before the layoffs. Seasonal hiring patterns persist, with retail and service jobs peaking in late autumn and healthcare and construction seeing summer spikes.

Government action to enhance workforce retraining and upskilling remains a Minnesota priority, especially following major layoffs and in response to federal shutdowns that impact services like SNAP and family healthcare. The state also continues efforts to attract talent with strong support for employer-based benefits and family-friendly work policies, recognized as fifth-best nationally for working parents.

Recent gaps in data stem from the volatility created by mass layoffs and fluctuations in net migration, making some outlook forecasts less certain than in previous years. However, local and state leaders remain confident in the region’s fundamental strengths—diversity, resilience, and a broad economic base.

Key current opportunities in Minneapolis include a nonprofit program manager role with the Minnesota Council of Nonprofits, a project coordinator in healthcare administration at Hennepin Healthcare, and a software engineer opening at one of several medium-sized technology firms hiring this fall.

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