Minnesota Chamber Releases Minnesota Business Benchmarks
Annual report reaffirms innovative, skilled talent; workforce shortage a growing concern
A talented workforce remains a backbone of a growing Minnesota economy, according to the Minnesota Business Benchmarks. But the second annual report produced by the Minnesota Chamber of Commerce and its local Chamber Federation partners cautions that Minnesota could be losing its advantage.
“Our members regularly cite shortage of workers and high taxes as the two biggest impediments to growing and investing in Minnesota. The difficulty of finding workers at all skill levels across all industries is a huge issue for Minnesota businesses,” Chamber President Doug Loon said. “The problem already is exacerbated by a slowing growth in the working-age population coupled with the retiring baby boomers. Plus, we struggle with the persistent achievement gap among students of color.”
The report highlights an additional strain on the workforce. Minnesota is losing more people to other states than it is gaining. This trend is hindering growth opportunities for many companies, Loon said.
Business Benchmarks is a collection of key economic indicators that measure Minnesota’s competitiveness and the health of the state’s economy compared with the rest of the country. Comprehensive, objective data was compiled from sources such as state and federal agencies.
Minnesota continues to lead in many categories, the report shows. But it is slipping in key areas, too.
On the positive front, innovation remains a trademark with Minnesota ranking fourth highest among states in patents per capita. The state ranks second in the nation for residents with at least a two-year degree. It is 10th best in concentration of STEM jobs – science, technology, engineering and mathematics.
The good news/bad news dynamics, however, are reflected in economic growth, Loon said. Minnesota ranked 13th among states for GDP growth in 2015, up from 27th the previous year and tied at the national average of 2.4-percent growth. That improvement, however, was largely on the strength of the first quarter. Minnesota ranked 41st when viewing GDP growth for the final three quarters of 2015 and the first quarter of 2016.
Minnesota improved in job growth and personal income growth but still lags the national averages – ranking 29th and 30th, respectively, Loon noted. And its standing in key tax categories was largely unchanged from 2014. The state is still third highest in the nation for its corporate and income tax rates, and second highest for some business property taxes.
The Business Benchmarks provides an excellent springboard for priorities to focus on at the 2017 Legislature, Loon said. Policymakers and business leaders must work collectively to build on the state’s strengths and minimize its weaknesses.
“We cannot rest on our past successes. We must continue to adapt to changing competitive pressures,” Loon said. “Our work at the Minnesota Chamber is to make Minnesota ready for the future – ready for change and ready to grow.”
For the full report, click here.