Minnesota’s long-heralded economy is losing steam according to a new report released Wednesday by the Minnesota Chamber Foundation which showed Minnesota’s GDP per capita has grown by just 1.0% annually since 2019, ranking 38th among states – well below the national average of 1.8%.
According to key economic measures highlighted in the report, Minnesota’s labor force is seeing slow growth, increasing by 0.2% per year, ranking 40th in the nation. Additionally, Minnesota saw 48,000 residents leave the state than move here during a four year period from 2020 to 2024.
“These stats should serve as a wake-up call,” wrote Doug Loon, president and CEO of the Minnesota Chamber of Commerce. “We cannot hide from the realities of our economic position. We can both celebrate what’s great and confront the barriers that hold us back. It’s time to retore our competitiveness and create opportunity here in Minnesota.”
WCCO Radio political analyst Blois Olson discussed the findings Wednesday morning on the WCCO Radio Morning News with Vineeta Sawkar.
“We just don’t have the growth, we don’t have the workforce growth or the GDP growth that other states have,” Olson said. “This comes on the heels of a Greater MSP report that said we’re facing headwinds here.”
Minnesota’s economic outlook isn’t entirely doom and gloom, with the report noting the state ranks among the top ten in the share of adults (25 and older) with at least a bachelor’s degree and with an associate or higher.
Minnesota also continues to produce the 5th-highest number of patents per capita and appears to be attracting investment in fast-growing sectors such as data centers, semiconductors, critical minerals and clean technologies.
“Some people just say business is never happy, we have high taxes, and look at our quality of life,” Olson said. “What the Chamber is saying here is we need to grow the workforce, deliver better value from our government, and we need to accelerate growth.”
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