ICYMI - DEED Commissioner Grove: The Minnesota Microcosm: Why a Uniquely Successful State Is Worth Watching
August 5, 2022
St. Paul – In a U.S. News and World Report op-ed published on Wednesday, August 3, Department of Employment and Economic Development (DEED) Commissioner Steve Grove highlighted the state's economic progress and said, "Minnesota offers an essential view to understand this moment – and predict what's next."
U.S. News and World Report:
U.S. News has ranked Minnesota in the top three of its Best States rankings every year since it began the analysis. This month, the state logged the lowest unemployment rate ever recorded in American history – an eye-popping 1.8%. We also have one of the top labor force participation rates in the country, and a 5-year business survivability rate consistently ranked near the top in the nation.
We're ranked among the best states to raise a family, the least-stressed states in America, and have ranked number one in voter participation for decades (in a state that’s consistently purple) – all validation of a model that seems to be working well.
However, that wasn’t always the case.
For much of the 20th century, Minnesota ranked below average on many economic metrics. But in the early 1970s, the state orchestrated what’s often called the “Minnesota Miracle” – a dramatic reshaping of state taxes for K-12 schools, reducing their dependence on local property taxes. Combined with a rapid growth in the supercomputer industry here, Minnesota saw its economic and educational prospects soar.
Continued investments in talent have paid off. For example, Minnesota pioneered one of the only state-driven Workforce Development Funds in the country – leveraging a payroll tax on employers to train the workers they need. With some of the strongest graduation rates in America, that talent built the densest Fortune-500 market in the U.S., and one of the most diverse state economies in America.
All these things give Minnesota unique bellwether status.
Read the full op-ed at U.S. News: The Minnesota Microcosm: Why a Uniquely Successful State Is Worth Watching.
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website, the JoinUsMn.com website, or follow us on Twitter.