The Twin Cities metro lost 2,000 jobs in January, a development that a top state official partly blamed on the federal immigration crackdown.

Why it matters: The latest Minnesota jobs report shows that the state is losing ground, with a 4.4% unemployment rate that tops the national figure (4.3%) for the first time since May 2007.

Between the lines: Department of Employment and Economic Development (DEED) Commissioner Matt Varilek noted that typically, changes in metro unemployment track with unemployment in Greater Minnesota.

• But the January report shows that the metro lost jobs while outstate gained, suggesting that Operation Metro Surge — which was concentrated in the Twin Cities — dealt a blow to the labor market, Varilek said.

What they're saying: "While we can't say that there was one and only one factor, it seems entirely possible to me that the ICE actions influenced our January numbers in a very negative way," said Varilek, who also pointed to tariffs and other national economic headwinds.

The other side: Minnesota Business Partnership CEO Kurt Zellers said that while the surge could have had a minor effect, slow job growth is a sustained pattern here.

• "Elected leaders need to seriously reflect on whether the policies they are enacting are making Minnesota more competitive and attractive for businesses and employees alike, or costing our state jobs. Today's data sadly suggests it's the latter."

Zoom out: After years of ranking among the states with the lowest unemployment, Minnesota has been underperforming the nation over the last 18 months, University of St. Thomas economics professor Tyler Schipper told Axios.

• He attributed the trend to a more regional issue, in which Midwestern states aren't growing their populations like other parts of the country.
• "We just haven't added jobs as quickly as other places have in the country. And now we've slid to the middle of the pack."

Zoom in: Statewide, job growth was flat in January. The private sector lost 900 jobs while the public sector added 1,000.

What we're watching: Since DEED is playing catch-up on jobs data following last year's government shutdown, February and March jobs reports are due out on April 16 and April 30, respectively.

• "I remain optimistic about the prospects for growth once some of these headwinds fade," Varilek said.
• Schipper said the Trump administration's crackdown on immigration — which began before the winter surge and continues today — will continue to hurt Minnesota, which relies on international immigration for labor more than other states.

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Delta Air Lines may have found a place at MSP Airport for its relatively new Delta One Lounge that caters to its highest paying customers.

Driving the news: The airline has zeroed in on a 20,000 square foot space on the upper level of Concourse G, according to Thrifty Traveler, citing Metropolitan Airports Commission documents.

• A commission subcommittee is set to approve a whopping $1 million just to study if the space is adequate and how much it might cost to build.

The big picture: Delta One Lounges are only for business class travelers and the airline has already opened them in New York, Los Angeles, Boston and Seattle.

• Delta has said it wants to open them in all of its hubs eventually. There's no timeline on this one.

⚾️ The Twins' Target Field opener is today at 3pm against the Tampa Bay Rays.

• There's free breakfast from 6am to 9am on Target Field Plaza, plus $2 pregame beers, hot dogs and snacks.

📺 The Wild, Wolves and Lynx will need to find a new local broadcast and streaming home next season after lenders signed paperwork officially ordering FanDuel Sports Network to wind down after its NHL playoffs coverage. (Sports Business Journal)

🏥 The interim leader of the struggling Hennepin Healthcare system resigned after less than three months in the role. (MPR News)

🥧 Florida-based dessert chain The Peach Cobbler Factory is planning a 15-shop expansion into the Twin Cities. (Minneapolis/St. Paul Business Journal)

✈️ Gov. Tim Walz's press secretary, Claire Lancaster, takes off today for a new role providing communications support to Delta Airlines CEO Ed Bastian. She'd been with Walz's communications shop since March 2020.

The Minnesota Lynx could part ways with up to two players in this afternoon's WNBA expansion draft.

How it works: The Lynx can protect five players from being taken by new franchises Toronto and Portland.

• The list of Minnesota's protectees isn't public, but it's a safe bet Napheesa Collier and most of the starting five are on it.

What we're watching: The draft could break up one of the fan-favorite "StudBudz" duo of Courtney Williams and Natisha Hiedeman.

• Williams is likely protected, but fan blog Canis Hoopus predicts Hiedeman won't be.
• USA Today thinks DiJonai Carrington — acquired by Minnesota in a trade less than a year ago — may also be at risk.

Yes, but: With Toronto and Portland picking 24 players from 13 existing teams, it's mathematically possible the Lynx lose nobody.

What's next: Get used to this waiting game, Lynx fans. There are three more expansion drafts coming from 2028-2030.

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For the first time since 1974, the Dinkytown space that housed Annie's Parlour has a new tenant — a hockey-themed coffee shop.

The latest: Two for Tripping, which opened last week and serves specialty coffee and breakfast items, gave the building a hockey-inspired exterior paint job, per the Minnesota Daily.

• The interior's exposed brick, large windows and wooden booths still remain, and while malts are off the menu, you can request your latte to be served in one of Annie's old glasses.

Audrey's thought bubble: The area has been lacking a spacious, independent coffee shop since The Purple Onion closed in 2020, and this is a solid replacement — even if the coffee needs a little work.