fbpx

Latest Posts

Home

Facebook

Twitter

Search
About

New data shows how Minnesota’s economy is changing

Policymakers in St. Paul all too often fail to see much beyond highways 494 and 694. One thing that we did in out recent report, The State of Minnesota’s Economy: 2017, was took look a little further afield.

Here, we take a look at Minnesota beyond the Metro. We look at employment growth, per capita incomes, and GDP for Minnesota’s counties. For comparison, we also look at MSAs in neighboring states.New data from the Bureau of Economic Analysis allows to update this for 2016.

Employment Growth

Figure 1 shows the change in Total Employment in Minnesota’s counties from 2000 to 2016. The strongest employment growth has been found on a North West to South East axis along the Mississippi and along the St. Croix River, close to the Twin Cities. In Greater Minnesota, such as along the Minnesota River valley, however, the number of jobs has fallen. Scott, Wright, and Sherburne were the fastest growing counties in terms of employment, while the greatest contraction was found in Norman, Faribault, and Koochiching.

Figure 1 – Change in Total Employment, 2000-2016, %

Source: Bureau of Economic Analysis and Center of the American Experiment

Per Capita Incomes

Personal Income remains much higher in Hennepin and Carver counties than it does elsewhere in the sate. But this gap is closing. As Figure 2 shows, between 2000 and 2016, the biggest gains in per capita Personal Income were found in Swift, Lac qui Parle, and Yellow Medicine counties. The levels here remain some around half of those in Hennepin and Carver, but because of the higher rates of change, Yellow Medicine has gone from 54.3% of Hennepin’s level in 2000 to 79.4% in 2016.

Figure 2 – Change in Real per capita Personal Income, 2000-2016, %

Source: Bureau of Economic Analysis and Center of the American Experiment

The most substantial gains have occurred in the agricultural southwest portion of Minnesota. By contrast, growth has been lower in the urban counties. This might seem to suggest convergence between richer and less well off areas. While this might be what we see in some cases, this illustrates that there is nothing automatic in the process. The gains in the southwest of the state have been driven by high agricultural prices over this period. Meanwhile, there are counties in the north of the state, which were among the less well off in 2000, which have continued so as their growth rates have been low.

John Phelan is an economist at the Center of the American Experiment. 

Comments

Subscribe

Categories

Upcoming Events

  • Morning in Minnesota Breakfast Series Featuring Isaac Orr

    Location: The Oaks at Eagle Creek 1000 26th Ave NE Willmar, MN 56201

    Please join Center of the American Experiment on Tuesday, August 27th at The Oaks at Eagle Creek for breakfast with Center policy fellow and energy expert, Isaac Orr. Following his discussion of his new report, Doubling Down on Failure: How a 50 Percent by 2030 Renewable Energy Standard Would Cost Minnesota $80.2 Billion, Isaac will be joined by Rep. Tim Miller, Rep. Dave Baker, and Sen. Andrew Lang for a conversation about renewable energy standards in Minnesota. Tuesday, August 27, 2019 The Oaks at Eagle Creek 1000 26th Ave NE, Willmar, MN 56201 7:30 AM Breakfast & Check-In 8:00 AM Presentation…

  • Fall Briefing Featuring Kimberley Strassel

    Location: Ordway Center for the Performing Arts 345 Washington Street, St. Paul, MN 55102

    Purchase Tickets Here

    Register Now