March 2026 - Minnesota Economic Trends

In this issue writers provide a summary of updated 2025 to 2027 Minnesota employment projections, insights on employer hiring experiences from the employer services staff, an analysis of the experience of Somali youth in Minnesota’s labor market, and key takeaways from the state's 2026 Climate Action Framework report.

Insights from the Frontlines: Employers Still Struggle with Finding Workers They Need Despite Loosening Labor Market

Minnesota's labor market is not as tight as it was a few years ago, but many Minnesota employers continue to face challenges finding the workers they need, according to workforce and economic development professionals who seek to connect employers with the talent their businesses need to grow and thrive.

Minnesota Short-Term Employment Projections: Industry and Occupational Outlook, Q2 2025–Q2 2027

Short term projections show Minnesota is expected to add nearly 50,000 jobs between the second quarters of 2025 and 2027, reflecting a steady 1.5% growth rate that mirrors recent gains. Much of this expansion is driven by strong demand in Health Care & Social Assistance and includes continued turnover across occupations, offering valuable insight for workforce planning and training investments.

The Experience of Somali Youth in Minnesota: Educational Attainment, Workforce Outcomes, and Economic Opportunity

Using 20 years of student records, this article compares Somali with white high school students in Minnesota to identify education and employment disparities. Somalis are more likely to remain in Minnesota for work after high school and hold more jobs in a single year than whites. There are also differences between the two groups in the wages and quality of the jobs held. More than half of Somalis worked in Healthcare and Social Assistance, sectors where employers often struggle to fill positions.

Workers and Minnesota’s Climate Goals

This article summarizes key takeaways from the upcoming workforce report that supplements the state’s 2026 Climate Action Framework and guides readers towards the Clean Economy goal chapter for workforce-related strategies included directly in the Framework.