Employment trends in Minnesota

With 79% of adults working, workforce participation is at the highest we’ve seen in the last few decades. Minnesota continues to have one of the highest rates of workforce participation in the nation, statistically tied for first with neighboring states North Dakota and South Dakota.

Historically, Minnesota has been home to wide and persistent gaps in employment by race. Today, the employment gap by race stands at 8 percentage points, down from its widest at 15 percentage points in 2011 and 2012. Despite overall progress, Minnesota’s employment gap by race has remained at 8 to 9 percentage points since 2019.

Eighty-seven percent of Minnesotans age 25-44 are working, the highest labor force participation rate of any age group. This age group mostly encompasses the Millennial generation.

Note: The Millennial generation is a cohort of people born between 1981 and 1996, with the youngest of the Millennial generation turning 25 in 2021. Just before that date, a small portion of younger members of the Millennial generation were included in the blue  line (age 20-24).

Today, 19% of older adults (65+) are working, a level of labor force participation that has held steady since 2017. That includes 27% of adults age 65-74 and 7% of adults age 75+.

Gradual increases in older adults’ employment between 2000 and 2017 could be related to several factors. In general, adults are living longer and healthier, prompting some adults to remain in the labor force past traditional retirement age. On the other hand, the Great Recession (2007–2009) had a significant impact on retirement wealth and “normal retirement age,” or the age at which adults are eligible for full Social Security benefits, increased to 66 and older around the same time.