6/28/2024 8:30:00 AM
Every quarter, the Labor Market Information (LMI) Office of the Minnesota Department of Employment and Economic Development (DEED) publishes research articles that offer insights into important labor market trends.
Every June, the annual state-of-the-state Minnesota Economic Trends issue provides an overview of Minnesota's labor market changes and job growth over the past year and takes a closer look at the labor market situation in each of the state's six regions. The June 2024 issue also includes articles that explore green jobs, look at short-term job projections and detail updates to data in the LMI Cost of Living tool. Select a title below to view the full article.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
You can see an archive of past Minnesota Economic Trends articles going back to 1993 on the DEED website.
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