Minnesota's Economy: Challenges and Opportunities Ahead

Economic Slowdown and Key Issues

Minnesota's economy is experiencing a slowdown, with business leaders and lawmakers gathering to address the concerns. The state is falling behind in key areas such as technology, innovation, and talent attraction.

GDP Growth and Tech Job Slowdown

• GDP Growth: Minnesota ranks 33rd in GDP growth from 2019 to 2024.
• Tech Job Growth: The state ranks 44th in tech job growth in 2024.

Innovation and Patent Activity

• While Minnesota produces many patents, the growth in patent activity has slowed.
• The state struggles to maintain its competitive edge in innovation.

Business Challenges: Taxes and Regulations

• Tax Competitiveness: Minnesota ranks 44th in overall tax competitiveness.
• High Tax Rates: Corporate and personal income tax rates are discouraging investment.
• New Labor Mandates:
• Starting next year, most employers must offer:
• 12 weeks of family leave
• 12 weeks of medical leave

Cost of Living and Workforce Challenges

• Cost of Living: Minnesota ranks 19th highest in the nation.
• Housing and Childcare Shortages: Driving up costs and making it harder to attract new residents.
• Labor Force Growth: Slowing due to declining birth rates and net migration.

Positive Aspects

• Education: Ranks among the top 10 states in the share of adults with at least a bachelor's degree.
• Corporate Headquarters: Home to 17 Fortune 500 corporate headquarters.
• Labor Force Participation: Increased among people of color and individuals with disabilities.