2022 Business Benchmarks Report
Minnesota’s economy – much like its people – is resilient. For more than a year and a half, businesses across the state have weathered the unpredictability of a worldwide pandemic, and the subsequent changes in demand, supply chains and government-imposed shutdowns. Yet here we are: a recovering economy offering more jobs than people to fill them, with businesses continuing to pivot and innovate, ushering in a new phase of prosperity for the future.
Each year, the Minnesota Chamber produces the Business Benchmarks report to make sense of the success of our economy relative to other states. This also benchmarks our progress toward recovery and our competitiveness. Is Minnesota a good place to do business? Do we have the tools in place to attract and retain business growth and skilled talent to all areas of our state, and continue to contribute to the quality of life that our citizens enjoy? Let’s dig into the details and find out.
At the Minnesota Chamber, we are dedicated to bringing our members, the broader business community and the public at large, up-to-date data on the economy.
Among this year’s findings:
- Minnesota’s economy is resilient but underperforming. Our GDP growth continues to lag the national average – although it isn’t among the worst in the nation, but considering our diverse economy we are outpaced by those we should surpass.
- Despite incremental progress on lowering taxes, such as providing relief on business property taxes and to those who accepted Paycheck Protection Program (PPP) loans, Minnesota remains among the highest taxed states in the nation, hindering economic growth.
- Many businesses illustrated the state’s legacy of innovation throughout the COVID-19 pandemic, but more can be done to foster entrepreneurship, especially among immigrants and people of color.
- Each element of Minnesota’s infrastructure – air, water, roads and digital connectivity – remains strong and helps move commerce through to every corner of the state, and beyond.
- The cost of doing business continues to vacillate, but specific costs continue to rise, such as electricity.
- Minnesota employers face new heights of the historic worker shortage. This is the result of a complicated set of factors, including eroding labor participation, lags in migration and the worst achievement gap in the nation.
The Business Benchmarks is a great snapshot in time of the state of Minnesota’s economy. At the Minnesota Chamber, we are dedicated to bringing our members, the broader business community and the public at large, up-to-date data on the economy.
The Chamber Foundation continues to build on its reputation as a leader on Minnesota’s economy, following the release of the Minnesota: 2030 report. This critical report and its ongoing applications outline the strengths of Minnesota’s business legacy, as well as challenges in growing the economy to one that makes Minnesota attractive to lucrative industries, keeps strong employers in the state and leverages workforce opportunities to build a workforce pipeline for the future. We hope the data contained in this report and the work of the Chamber Foundation and Grow Minnesota! program helps you make business decisions. We reaffirm our commitment to working with you – being an advocacy champion for Minnesota’s statewide business community, providing thought-leadership on the economy and promoting economic opportunity for all Minnesotans.