Southwest Minnesota is a national leader in agricultural production, and renewable energy.
The region's thriving manufacturing sector includes food processing, machinery, printing, metal products, and computers and electronic products.
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Economic recovery slowed
7/23/2025 10:57:58 AM
Amanda Blaschko, Luke Greiner
After three years of steady job growth, economic recovery slowed in Southwest Minnesota in 2024, settling in at just over 173,000 jobs for the second year in a row. While that job count was nearly identical to the 2023 average, it was up by just over 5,800 jobs compared to 2020, but still down almost 3,600 jobs from the 2019 employment level.
However, beneath that stability were significant shifts in specific subsectors that helped drive local economic momentum. Topping the list of growing industries was Nursing & Residential Care Facilities, which added 943 jobs, a 9.6% increase. With over 10,700 jobs and average annual wages just under $39,000, this sector plays a critical role in supporting the region's aging population and health care infrastructure.
Food Services & Drinking Places followed with a gain of 416 jobs, up 3.8% from the previous year. This growth reflects a welcome rebound in hospitality and local consumer spending after previous pandemic-related slowdowns.
Government-related employment also saw healthy growth. The Executive, Legislative & Other General Government Support sector added 319 jobs (up 4.6%), while Social Assistance grew by 252 jobs, a 4.7% increase. Together, these trends indicate continued investment in community services.
Health Care growth was strong across the board, with Hospitals and Ambulatory Health Care Services adding 167 and 148 jobs respectively. These two subsectors offer some of the highest wages among the top ten, with Hospitals averaging over $82,000 annually and Ambulatory Care at $67,000, signaling both demand and strong earning potential in the health care field.
Other notable job gains occurred in General Merchandise Retail Stores (+138 jobs), Specialty Trade Contractors (+120 jobs), Chemical Manufacturing (+112 jobs) and Repair & Maintenance (+111 jobs). The latter three industries tend to offer mid- to high-range wages, including Chemical Manufacturing, which pays over $90,000 annually, making it the highest-paying among the top-growing sectors (see Table 1).
| Table 1. Top 10 Largest Growing Industries in Southwest Minnesota, 2023-2024 | 2024 Annual Data | Change in Jobs, 2023-2024 | ||||
|---|---|---|---|---|---|---|
| NAICS Code | NAICS Industry Title | Number of Establishments | Number of Jobs | Avg. Annual Wages | Numeric | Percent |
| - | Total, All Industries | 13,018 | 173,010 | $54,178 | -73 | 0.0% |
| 623 | Nursing & Residential Care Facilities | 264 | 10,755 | $38,549 | +943 | +9.6% |
| 722 | Food Services & Drinking Places | 800 | 11,487 | $18,323 | +416 | +3.8% |
| 921 | Executive, Legislative & Other General Government Support | 301 | 7,254 | $47,574 | +319 | +4.6% |
| 624 | Social Assistance | 990 | 5,558 | $30,212 | +252 | +4.7% |
| 622 | Hospitals | 34 | 8,346 | $82,306 | +167 | +2.0% |
| 621 | Ambulatory Health Care Services | 478 | 6,795 | $67,377 | +148 | +2.2% |
| 455 | General Merchandise Retailers | 123 | 3,684 | $29,928 | +138 | +3.9% |
| 238 | Specialty Trade Contractors | 924 | 4,775 | $66,585 | +120 | +2.6% |
| 325 | Chemical Manufacturing | 28 | 1,117 | $90,028 | +112 | +11.1% |
| 811 | Repair & Maintenance | 466 | 1,987 | $51,863 | +111 | +5.9% |
| Source: DEED Quarterly Census of Employment & Wages | ||||||
Altogether, these top 10 industries added more than 2,700 net new jobs in the region, offsetting losses elsewhere. The data highlights a diversified and evolving economy in Southwest Minnesota, with growth centered around health care, local government, retail and skilled trades, each playing a vital role in sustaining the region's communities and workforce.
For more information about recent job growth in Southwest Minnesota, contact Luke Greiner at luke.greiner@state.mn.us or Amanda Blaschko at amanda.blaschko@state.mn.us.
