Goal: A strong economy that encourages business investment and promotes opportunities for a competitive workforce.
Minnesota has historically enjoyed a robust economy, characterized by diverse industry, the attraction and retention of a skilled workforce, a tradition of entrepreneurial spirit and an eye toward innovation. Maintaining our high quality of life in any area—from housing to health to education—depends on a strong economy. And, in turn, the vitality of our economy hinges on our continued success in those areas as well.
Like much of the country, Minnesota is experiencing mixed results as it seeks to emerge from the economic downturn. Overall economic growth has returned, but economic challenges remain.
- The Twin Cities metro is home to 1,929,900 jobs, ranking it 13th among large US metros. The region has seen annual increases in the number of jobs since 2011, in line with the national trend.
- 2013 marked the year when Minnesota regained the number of jobs lost since the start of the Great Recession. As of 2015, we stand at 86,309 jobs above our pre-recession peak in 2007.
- Each year since 2000, Minnesota’s percentage change in jobs has largely mirrored what is happening nationally. 2015 showed a 6.4% increase in jobs from 2000 (165,871 more jobs).
- In 2012, we noted that Saint Paul was the only metro region geography we track that had not seen any job recovery since the Great Recession. A net gain of about 6,400 jobs from 2011 to 2015 could be an initial sign of recovery. At the same time, the Minneapolis-Saint Paul suburbs and Minneapolis City continue to see job growth every year.
- One in four jobs in the state is in the education and/or health industry. All industries except information have seen a net increase in jobs between 2010 and 2015.
Economic output (GDP)
- There was a drop in real GDP between 2008 and 2009, but Minnesota has made steady gains since then. In 2015, Minnesota's percent increase in real GDP (2.4%) was equal to that in the U.S. overall.
- At $84,424, economic output per working-age adult is now higher than before the recession in 2008. In fact, it's higher than at any point since at least 2000.
- Minnesota ranks 11th among states on economic output per working-age adult in 2015, up three spots from 2014. States with higher output include North Dakota, Alaska, Delaware, and Connecticut. Iowa ranks 19th and Wisconsin ranks 24th.
- Statewide, median income rose slightly in 2013 and again in 2015 to $63,488. The Twin Cities 13-county metro region median income has held steady since 2012. In 2014, it was around $69,000.
- Median income for households with foreign-born householders increased around $4,600 from 2011 to $50,600 in 2015.
- By county, the counties that form the outer ring of the metro region, and Olmsted and Dodge counties in the Southern region, post the state’s highest median household incomes.
- By household type, median household income in the Twin Cities ranges from a low of $37,500 for single females with children, to more than three times as much for married couples with children ($111,000).
- After three consecutive years of increases, Minnesota's poverty rate declined from 11.9 percent in 2011 to 10.2 percent in 2015.
- Statewide, those who are least able to control their economic well-being–children–are also more likely than any other age group to live in poverty. In 2015, the statewide poverty rate for children age 0-4 was 14.1%.
- Communities of color are also disproportionately burdened by poverty (23% versus 10% overall). The disparity is consistent over time. There is evidence of a downward trend in the poverty rate for our residents of color from 2011 to 2015.
- Fourteen percent of preschoolers in Minnesota live in a household with income below the poverty line, compared with 7% in their prime working years (45-64) and 6% in the early years of traditional retirement (65-74). Young adults (18-24, traditionally college age) have the highest poverty rate: around 1 in 5.
Investment in early childhood and later in education helps to ensure a skilled workforce to participate in a diverse economy. Access to jobs affects opportunity and productivity, while workers and other residents depend on and contribute to the transportation sector. The good health of our citizens saves money in health care costs and increases regional competitiveness and productivity. Disparities affect the economic contributions that workers and companies can make to our state's vitality, but efforts to strengthen communities from cradle to career hold potential to promote equity and increase competitiveness in the Twin Cities metro and beyond.