The Current State of the Minnesota Economy

Many people in Minnesota believe the state of their economy is remarkably strong and successful and many states should try and be like them. Actually, Minnesota has several advantages that are important like a population that is rich and well-educated, cultural values that result in participation of work force and various natural resources.

Unfortunately, even with these advantages, their economy`s state has been commonplace during the recent years.

This was concluded by the groundbreaking paper written by Joseph Kennedy who was the economist for the commerce department in U.S.A. Kennedy`s research shows that for the previous 15 years in regard to growth, economically, has been averaging, below average considering their productivity in the private-sector, 30th in position in states in per-capita growth (income) and 28th in job creation rates. Also, the Twin Cities ranks (metropolitan area) below average or at average in the nation`s 15 main metropolitan localities in economic growth and creation of jobs rates. This is actually not the worst news yet. It has also been discovered that Minnesota’s performance currently leads towards prosperity that is below average in the future considering a number of alarming indicators.

Minnesota is going through a concentration of employment that is growing in jobs and industries that yield economic output that is small per job. Steady in the trend, there are very few people of Minnesota working in jobs that are high-tech currently as compared to 15 years back in accordance to the Labor Statistics Bureau. Minnesota is also experiencing problems from a deterioration in venture capital, a dropping rate of company formation (new) and also a deterioration in entrepreneurship. May be the fact that is most worrying is that annually, many households (thousands) leave Minnesota and move to other states, for lower states of tax (overwhelmingly). (See how we can help here)

The Bureau of Census most recent data on migration, indicates that the number of people that left Minnesota increased in 2015. This issue on migration contains two dimensions. The first and crucial one is on people leaving Minnesota for other states. the second is important but is not quite recognized; Minnesota is not so much a state that is desirable for Americans who live in different states and they do not migrate to Minnesota in large numbers that can take the place of those who are leaving.

This leads to a conclusion that Minnesota may be entering a period of an economic performance that is below average. Many people may be unaware of this but Minnesota`s very own agencies have been predicting growth that is below average for the state (officially). Also the Minnesota Department of Employment and Economic Development (DEED) has come up with projections of 10 years of growth of jobs in 22 main occupations, that include some that the state has been steady historically, DED predicts Job growth in Minnesota will go below average in the next 10 years.

The people of Minnesota are proud of the quality of life offered in their state but recently it has not resulted in economic performance that is outstanding. However, during the previous 15 years, the economy of Minnesota has been commonplace. Unless amendments are made, Minnesota may change from average to below average on the future which is very alarming. Minnesota can be better in terms of is economy. Actually, Minnesota has to do better for the purpose of preserving equal opportunities for children that were enjoyed by previous generations.

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