Minnesota, under the leadership of Gov. Tim Walz since 2019, has seen a robust labor market recovery following the Covid-19 pandemic-induced shock in early 2020. As of June, the state's unemployment rate stood at 2.9%, ranking it among the 11 lowest states in the nation. This rate has consistently remained at 3% or lower since November 2021, outperforming the national average of 4.1% in June.
Moreover, Minnesota boasts a higher labor force participation rate compared to the national average. In June, the state's participation rate was recorded at 67.8%, the fifth highest in the US, while the national rate stood at 62.6%.
Gov. Walz's administration has overseen a healthy budget surplus, enabling the implementation of progressive policy initiatives. The latest projection by the Minnesota Management and Budget agency in February anticipates a surplus of $3.7 billion for the 2024-25 biennium budget, marking a $1.3 billion increase from the previous projection in November.
Notably, tax revenue, particularly from corporations, exceeded earlier estimates, contributing to the surplus. However, despite the surplus, Minnesota is projected to have expenditures surpassing revenue in the current and upcoming budget terms.
Overall, Minnesota's labor market resilience and fiscal health under Gov. Walz's leadership reflect a positive economic outlook for the state, positioning it favorably compared to national trends.
