Over the past decade, Central Minnesota has remained one of the state's strongest labor force performers. Despite economic disruptions caused by the COVID-19 pandemic, the region not only weathered the storm better than the state overall but has also shown stronger and more consistent labor force growth in most years.

Comparing the size of the labor force in the first quarter of 2016 to the first quarter of 2025, Central Minnesota added more than 27,000 workers, growing from 384,706 to 411,724 workers. By contrast, the statewide labor force grew by about 132,000 workers, from just over 3 million to 3.15 million. Minnesota has seen a respectable gain, with Central leading the way, accounting for over one-fifth of total labor force growth in the state (Figure 1).

A closer look at the year-over-year trends shows that Central Minnesota outpaced statewide growth in 7 out of the past 9 years. The region's labor force expanded at a faster rate in 2017, 2019, 2020 and in each of the three years following the pandemic's initial disruption, in 2021, 2022 and 2023. Of particular note:

• In 2020, just before the pandemic struck, Central's labor force grew by 1.5%, compared to 1.1% statewide.
• In 2022, as the recovery gained steam, Central's labor force grew 1.3%, while the state only saw a 0.7% increase.
• In 2023, Central Minnesota's labor force jumped by 2.0%, almost double the state's 1.1% growth rate.

This consistent pattern reflects a region with a strong foundation in both population and economic development, positioning it well to meet labor market needs now and into the future. Several underlying factors help explain why Central Minnesota is growing faster than the state overall:

1. Population Growth & In-Migration

As housing costs continue to rise in the Twin Cities, more individuals and families are moving to nearby communities in Central Minnesota. The region boasts many fast-growing cities that offer more affordable housing, easy commutes and high quality of life. Remote work has further accelerated this trend.

2. Economic Diversification

Central Minnesota is home to a robust mix of industries, including Health Care, Manufacturing, Retail Trade, Educational Services and Transportation & Warehousing. This diversification protects the region from the volatility of relying too heavily on one industry and provides employment opportunities across a range of skill levels.

3. Access to Education and Workforce Pipelines

The region's colleges and technical schools feed directly into the local economy. Strong partnerships between education and employers help align curriculum with workforce needs and provide local workers with training for high-demand jobs.

4. Supportive Infrastructure for Workforce Development

Central Minnesota benefits from a coordinated network of CareerForce locations, regional planning organizations and industry partnerships that support workforce engagement, especially among youth, mid-career workers and underserved populations.

Central Minnesota's labor force reached an all-time high of 411,724 workers in the first quarter of 2025, a clear sign of recovery and growth. As the region looks ahead, it will face familiar challenges: attracting young talent, addressing child care and housing shortages, and supporting workforce participation among older adults and diverse populations. But the track record speaks for itself: Central Minnesota is not just growing, it's growing in a way that's both rapid and resilient.

For more information on labor force growth in Central Minnesota, contact Luke Greiner at Luke.Greiner@state.mn.us.