Saint Paul — Minnesota’s median household income grew modestly in 2016, according to numbers released today from the U.S. Census Bureau’s American Community Survey. Between 2015 and 2016, Minnesota’s median household income grew by $1,300, continuing its steady, upward climb since the decade began. Since 2010, the state’s median household income increased over $4,500 in real dollars[1], from $61,000 in 2010 to $65,600 in 2016.

The new numbers also indicate that there has been some improvement in economic conditions for Minnesota’s communities of color. The number of Black workers with full time[2], year-round jobs and earnings over $35,000 grew by 16,400 between 2010 and 2016. And the share of Latino workers in full time, year-round jobs with earnings over $35,000 grew from 17% to 28%, a gain of 20,800 workers.

“After the Great Recession, economic recovery was slow to take hold for many of Minnesota’s communities of color,” said Susan Brower, Minnesota State Demographer. “The latest data show that a number of small, but clear, signs of greater stability have emerged over the past 6 years.”

The Minnesota Department of Administration’s State Demographic Center also noted that while poverty rates for all Minnesotans did not decrease significantly from 2015 to 2016, they did decline for nearly all race groups in Minnesota between 2010 and 2016. During this period, poverty rates dropped from 41% to 32% for American Indian, 38% to 30% for Black, and 26% to 18% for Latino Minnesotans. Poverty rates remain much higher, however, for communities of color than for white Minnesotans.

In all, 533,000 Minnesotans (including 161,000 children), have incomes below the official poverty threshold in 2016, a decrease of over 66,000 from 2010.

“The new data show that economic conditions have continued to improve for Minnesota since the recession,” said Brower, “and some economic gaps between communities of color and White residents have begun to show signs of narrowing. We still see large racial disparities in the state, but there has been some progress made in recent years.”

Minnesota’s labor force continued the trend towards greater numbers of Hispanics and racial minorities in the labor force. While the non-Hispanic White labor force (ages 16-64), declined by about 65,000 between 2010 and 2016, all other groups saw increases.

“As Minnesota’s workforce continues to become more diverse, the need to eliminate disparities takes on greater importance,” said Brower.

[1] “Real means that the dollars have been inflation-adjusted to have equal earning power across all years. All dollar amounts are presented in 2016 dollars.
[2] Full-time employment is defined as 35 or more hours per week, and year-round employment as 50 or more weeks per year.