ST. PAUL, Minn. (GRAY) – A report published this week by the Minnesota Chamber of Commerce revealed that the state’s economic growth is lagging behind the national average in several key metrics.
Many of the metrics are growth-oriented, meaning Minnesota’s economy may be growing at a slower rate than most states in the union. According to the Chamber, between 2019-2024, the state was ranked nationally:
- 33rd in GDP Growth
- 39th in Job Growth
- 40th in Labor Force Growth
- 33rd in Per Capita Income Growth
- 46th in Median Household Income Growth
While the growth of Minnesota’s economy may be slowing, the report also acknowledges that many of the metrics themselves remain relatively high compared to the national average.
The Chamber says that between 2014 and 2024, Minnesota’s economy has grown by about 1% per person per year. The national average was 1.8%.
As far as GDP goes, the report argues that things like industry strength, a top-10-ranked skilled workforce, and emerging new industries are benefiting Minnesota. At the same time, the state ranks 44th in tech job growth and 44th in “overall tax competitiveness.”
The state’s high labor force has benefited from expanded “participation of underrepresented groups,” and international migration has driven growth in the state’s foreign-born labor force.
Still, the state’s population is aging, and birth rates are declining. Paired with an already high labor force participation rate (6th in the U.S.), the Chamber argues “there’s little room for expansion.”
Finally, the Chamber cites people leaving the state as a key economic factor.
According to the report, which aggregated data from the U.S. Census Bureau, the state saw a net loss of 47,930 residents between 2020 and 2024.
The Department of Employment and Economic Development (DEED) pointed out that the state remains strong in several key economic indicators, several of which are cited in the Chamber’s report.
“Minnesota’s economy is diverse and growing, with businesses big and small succeeding here. Minnesota is home to 17 Fortune 500s, we’re a top-ten state for business survivability and we’re fifth for patents per capita, a leading indicator of future growth. Minnesota workers benefit most, with business success translating to one of the nation’s most active labor markets and over-the-year job growth that is stronger than the U.S. as a whole.”
“We continue to work with our partners to help businesses invest and expand, workers grow their skills and find jobs and communities welcome new employers.”
AUTHOR’S NOTE: The statistics in this article were obtained directly from the Minnesota Chamber of Commerce’s 2026 Business Benchmarks Report. Many of the metrics cited are quoted verbatim or closely attributable to the report. Please reference the report for a primary source.
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