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Minnesota added 10,700 new jobs in March, a 0.4 percent gain compared to a month earlier.

It’s the largest monthly gain in a year and four times faster job growth compared to the national rate. And while it showed Minnesota’s economic resilience, leaders from the Department of Employment and Economic Development said the state could face tougher financial headwinds moving forward.

DEED Commissioner Matt Varilek said that recent federal layoffs could take time to show up in Minnesota’s jobs data. And increased tariffs could have a trickle-down effect on Minnesota’s economy.

“Despite this good news, economic uncertainty — it persists, and in some cases, increases,” Varilek said. “We continue to monitor changes to federal government employment. We’ve yet to see those layoffs reflected in our jobs numbers.”

Varilek said the unemployment numbers would impact the state’s jobs report once employees are removed from an employer’s payroll. For federal workers or others facing termination with a specific end date, there would be a lag in reporting until after that date comes and goes. He said that could be reflected in upcoming reports.

Construction and government employment sectors saw the greatest rates of growth in March, with all government employment coming from state and local sectors.

The state also saw a slight uptick in its unemployment rate last month to 3.1 percent, which Varilek said was spurred by more Minnesotans trying to enter the labor force. Varilek also said the state was buoyed by its diverse economy.

“We continue to monitor for changes in this picture, due to uncertainty coming out of Washington, but for now, we still do see a strong picture,’” Varilek said.

Dana Ferguson

Author

Economic officials reported job growth in March but noted that mass layoff data likely isn’t represented yet.

Minnesota officials post strong March jobs report, note economic uncertainty ahead

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