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June 2024 - Minnesota Economic Trends

The DEED Labor Market Information (LMI) Office’s annual state-of-the-state Trends issue provides an overview of Minnesota’s labor market changes and job growth over the past year, takes a closer look at each of the state’s six regions, explores green jobs, looks at short term job projections and details updates to data in the LMI Cost of Living tool.

Year In Review: Minnesota’s Labor Market

Minnesota’s labor market situation over the past year is in line with the Federal Reserve’s goal to curb inflation with a "soft landing” with continued, albeit slowing, job growth and hiring, and continued low unemployment. This article details long-standing demographic trends as well as other more recent factors to provide an overview of the state of the state’s current labor market situation. 

Central Minnesota Holds Steadfast

With employment finally surpassing pre-pandemic levels, most data point to a strong and growing economy in Central Minnesota, although the labor market remains tight. This tight labor market is good news for job seekers, but the hiring and retention challenges for employers remain, almost becoming an accepted norm.

The Metro Area's Labor Market in Motion

The Twin Cities Metro Area continues to experience very tight labor market conditions. Throughout 2023 and the beginning months of 2024, unemployment remained low, even as more workers joined the labor force. And while hiring demand dipped between 2022 and 2023, vacancy levels remain high, especially in certain industries.

A New Equilibrium in Northeast?

Northeast Minnesota is one of four regions that has not yet reached pre-pandemic labor force levels and the number of people in the regional labor force actually declined slightly over the past year. However, the decline in the number of job vacancies combined with other factors point toward a potential loosening of the historically tight labor market in Northeast Minnesota.

The Northwest Minnesota Labor Market Is Driven by Long-Term Trends…Again

With employment now gaining ground – total employment has surpassed its prior high of 2019 both in Northwest Minnesota and in Minnesota statewide – it is natural to think of this as a new era. With that frame of mind, we assess the state of the Northwest Minnesota labor market from the long-term trend perspective.

Southeast Minnesota Job Growth and Vacancy Trends in 2023

The region saw a gain of nearly 3,500 jobs from 2022 to 2023, indicating a continuing recovery from the impacts of the pandemic. The regional labor force has shown a positive trajectory, with significant growth observed in recent months. Job vacancies have returned to pre-pandemic levels, signaling a normalization of the job market in the area.

Back on Track in Southwest Minnesota

Economic recovery continued in Southwest Minnesota, as the 23-county region welcomed more than 1,600 additional workers to the labor force over the past year, and nearly 1,200 net new jobs from 2022 to 2023. As with the rest of the state, job growth likely could have been greater, if there were workers to fill the jobs.

Green and Clean Employment in Minnesota: A Starting Point

Developing a cleaner and more environmentally sustainable economy will generate new jobs, change the skills required of existing jobs and reduce demand for other jobs. This article provides an overview of green and clean employment in Minnesota and defines commonly used terms.

Short Term Projections – More Measured Growth

Employment projections produced by the LMI Office estimate a gain of 56,225 jobs over the next two years, equivalent to an average employment growth rate of 0.9% per year, a return to a rate typical of the years prior to the Pandemic Recession. Job growth is projected to vary across industries and occupations and this article details the differences.

Minnesota Cost of Living Update

Each year, the LMI Office updates data in the Cost of Living Tool to help people calculate the cost of meeting basic needs for individuals and various family compositions in different locations across Minnesota. Adjustments in the cost of living calculation were most impacted by changes in expenses for child care, housing, taxes and transportation during 2023.  

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