New data show poverty in Minnesota still at pandemic levels

According to newly released US Census Bureau data, in 2024, 9.3 percent of Minnesotans were in poverty. This is the same rate as in 2023 and 2021. Among the 50 states, Minnesota had the sixth-lowest poverty rate, only surpassed by New Hampshire, Utah, Vermont, Maryland, and New Jersey.

While poverty remains relatively low in Minnesota, progress has been slow, especially in the aftermath of the coronavirus pandemic.

Figure 1: Poverty rate by state, 2024

Post-pandemic progress

After reaching a historic low in 2019, poverty rose again during the pandemic. In Minnesota, poverty reached 9 percent in 2019, but rose to 9.3 percent in 2021. The US Census Bureau did not provide data for 2020.

In more than half of the states, poverty is down in 2024 compared to 2019. For Minnesota, however, poverty in 2024 is a little over 3 percent higher than it was in 2019. Only 17 other states, including Washington, D.C., are experiencing a similar trend.

Figure 2: Is poverty higher in 2024 than it was in 2019?

As American Experiment has continuously documented, Minnesota’s economic recovery from the pandemic has lagged that of most states. This likely explains the state’s slow progress in reducing poverty as well.

Minnesota’s poverty rate in 2024 is the same as it was in 2021 — the height of the COVID-19 pandemic. While the rate fell 3 percent between 2022 and 2024, Minnesota ranked 29th among the 50 states in reducing poverty during that period.

Without pro-growth policies, Minnesota’s economy will likely continue to slow. This will mean fewer opportunities for upward mobility, making it even harder for families to escape poverty.