Minnesota's Economy: Challenges and Opportunities Ahead

Minnesota's economy is facing some tough times. Business leaders and lawmakers recently gathered to discuss these issues and find solutions. The state's economy is not growing as fast as it used to. It's falling behind in areas like technology, innovation, and attracting talent. One big problem is the slowing GDP growth. Minnesota used to be a leader, but now it's lagging. The state ranks 33rd in GDP growth from 2019 to 2024. Tech job growth is also slow, with Minnesota ranking 44th in the nation in 2024. Innovation is another concern. While Minnesota produces many patents, the growth in patent activity has slowed down. Businesses are also struggling with taxes and regulations. Minnesota ranks 44th for overall tax competitiveness. High corporate and personal income tax rates are discouraging investment. New labor mandates, like paid family and medical leave, are adding to the challenges. Starting next year, most employers must offer 12 weeks of family leave and 12 weeks of medical leave. The cost of living in Minnesota is also a concern. It ranks 19th highest in the nation. Limited housing and childcare shortages are driving up costs and making it harder to attract new residents. Workforce challenges are another issue. The labor force is not growing as fast as it used to, partly due to declining birth rates and net migration. However, there are some positive aspects. Minnesota ranks among the top 10 states in the share of adults with at least a bachelor's degree. It's also home to 17 Fortune 500 corporate headquarters. Labor force participation among people of color and individuals with disabilities has also increased.