Quarterly economic snapshot – Minnesota’s economic performance in early 2022

The Minnesota economy continued to expand in the fourth quarter of 2021 and first quarter of 2022. However, notable challenges and uncertainties cloud the state’s outlook going forward. Read more here, as we break down key economic indicators in the first quarter of 2022. 

Highlights:

• Minnesota’s real GDP expanded by 5.0% in the fourth quarter of 2021, ranking 37th best among all states.
   
• Minnesota exports grew to $23.5 billion in 2021, rebounding strongly after declining in 2020.  
   
• New business applications remain high in early 2022. Total applications were 38% higher in January-March 2022 compared to January-March of 2019.
   
• Total employment inched up in March 2022, reaching 2,893,800 jobs on a seasonally adjusted basis. Total employment expanded by 0.4% from the previous month and 2.3% year-over-year. Minnesota remained 101,700 jobs below pre-pandemic employment levels as of March 2022.
   
• Minnesota’s unemployment rate reached record lows in March 2022, declining to 2.5% on a seasonally adjusted basis. Only twice since 1976 has Minnesota’s unemployment rate registered this low. 
   
• Labor Force Participation Rate (which measures the share of adults 16 and older who are working or actively looking for work) rose for the third consecutive month, reaching 68.1% in March. 
   
• U.S. inflation continued to rise in March 2022, with prices climbing 8.5% higher than a year prior in March 2021.

Grow Minnesota! – Tools and resources for Minnesota businesses

Below is a round-up of articles and tools to help your business with workforce challenges, exporting and leveraging free datasets to identify and learn about Minnesota companies.