Employment is strong, wages are beating inflation, but growth took a hit at the start of the year.
Minnesota’s population growth
Population growth influences the economy significantly. Recent census data indicates slower growth rates for Minnesota, with only 0.4% growth from summer 2022 to 2023, lagging behind the national average of 0.49%.
Economic growth
Despite wage growth and low unemployment, Minnesota's economic outlook is challenged by a decline in GDP earlier this year. A significant drop in farm income, alongside lower manufacturing receipts, contributed to this downturn.
Jobs and wages
Minnesota's unemployment rate is at 2.9%, lower than the national average. Wages have grown by 5.7% year-on-year, outpacing the national trend of 4.7%, illustrating a strong labor market.
State government finances
State revenues have exceeded expectations, largely due to increased wages and corporate profits. Minnesota's budget remains in surplus, even with significant recent state spending increases.
