Two key organizations recently released encouraging reports about the state of the Twin Cities’ economy. The State Job Creation Index, a
Gallup analysis of job creation at the state level, put Minnesota in fifth place for the 12 months that ended in December 2013. All four “states” (one was the District of Columbia) that finished ahead of Minnesota are significantly smaller; the leader, North Dakota, is currently benefiting from a massive oil boom.
Notably, Minnesota came in just ahead of Texas, which is often touted as a low-tax, low-regulation alternative to slower-growing northern states that often impose heavier tax burdens and stricter environmental regulations. Leaving the political commentary to others, Minnesota is typically lumped in with this “northern contingent.”
Another report ties Minnesota’s impressive job creation figures to a vibrant, apparently accelerating economy in our own backyard.
The Bureau of Labor Statistics’ most recent Metropolitan Area Employment and Unemployment Summary looked at job creation and unemployment figures in 372 metro areas across the country. Although some smaller metros had minuscule unemployment rates— Bismarck, ND, and Logan, UT were both at 2.8 percent—Minneapolis-Saint Paul, at 4.9 percent, had the lowest rate among large metro areas (defined by a total population of one million or higher). That marked a 0.2 percent improvement from December 2012, when it also had the lowest unemployment rate among major metro areas.
Twin Cities’ business and civic leaders already have plenty of reasons to pat themselves on the back, so why not add another? Job creation was strong across most economic sectors, with information technology and healthcare leading the way. It’s especially impressive that this growth comes on the heels of a prolonged period of economic malaise. In 2010, a sobering report from the
Itasca Project Job Growth Task Force asserted that “well before the current economic downturn…the region [had] fallen behind much of the nation in terms of job growth,” going on to warn that “our quality of life will decline” without action.
To reverse the slump, Itasca’s report urged lawmakers to “address the cost of doing business,” articulate a plan for local and regional growth, and encourage entrepreneurship and research/innovation. In January, Governor Dayton announced the launch of the Minnesota Job Creation Fund, a far-reaching program that offers tax breaks of up to $1 million for businesses that “create at least 10 full-time jobs and invest at least $500,000 in their own property improvements,” according to the
Pioneer Press.
Writer: Brian Martucci