Why Minnesota needs an economic comeback, and how the private sector can lead it

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

For generations, Minnesota’s private sector has powered a remarkable story of innovation, productivity and prosperity. Our diverse industries, global companies and highly skilled workforce have long positioned us among the strongest states for quality of life and economic performance. But here’s the reality: we cannot rely on the successes of 50 years ago to carry us into the future.

At the Chamber’s annual Economic Summit on Wednesday, my colleague Sean O’Neill walked through this year’s Business Benchmarks report, produced by the Minnesota Chamber Foundation. This annual report tracks key metrics that measure our economic strengths and challenges. And the data this year are clear: Minnesota’s economy is not keeping pace. From 2019 to 2024, our state ranked 33rd in GDP growth, 39th in labor force growth and 46th in household income growth. Now, to be clear, we are growing in some areas. But we’re simply not growing fast enough compared to other states. And more people are leaving Minnesota than moving here. This “net domestic migration” trend matters. When employers can’t compete here, the livelihoods of employees and the vitality of our communities suffer.

The goal is not to dwell on the negative. We’re the Chamber after all and we’re proud of our exceptional economy. But we cannot rest on that pride. Our job is to help the private sector create opportunity so the next generation can stay here and thrive. That is the purpose behind our new statewide effort: Economic Imperative for Growth. This initiative is a call to action for employers and policymakers to confront the barriers holding us back and work together to restore growth and competitiveness. When our board met this summer to develop our strategic plan, they asked for clear metrics to measure where Minnesota stands today and where we need to go. Those metrics include GDP per capita, which is the most direct measure of prosperity and reflects spending power, investment confidence and productivity. Growing the economic pie is how we address fiscal challenges – not by raising taxes, but by expanding opportunity.

We also measure labor force growth, which determines how fast employers can add jobs and expand. Minnesota employers have struggled to find workers for nearly a decade, and growth alone isn’t enough – it must keep pace with other states. Capital, talent and innovation are mobile, and they flow where opportunity is expanding. Finally, net domestic migration shows how many people are moving in versus moving out. It’s a critical barometer of opportunity, affordability and quality of life. When people leave, it signals they believe they can find better prospects elsewhere.

The economic imperative for growth is not a one-day conversation. This is a multi-year strategy for the Chamber and the broader business community. First, we will have an honest conversation with businesses and Minnesotans about our economic outlook. We cannot hide from reality. Second, we will celebrate what makes Minnesota great. We have a powerful foundation – Fortune 500 headquarters, world-class innovators and strong local businesses across the state. We are not broken, and it is not too late to shape a stronger future. Finally, we will work with business organizations, policymakers and community leaders to identify practical, meaningful initiatives that transcend politics and improve our competitive position.

I truly believe Minnesota’s best days are not behind us. We can reach our full economic potential, but it will take all of us. As you read through the data in the report, I encourage you to consider what this means for your company, your employees and your family. We are here because we believe in Minnesota – in what it is, and what it can be. And we care enough to look honestly at the data and do better, together. The Chamber’s goal is simple: for your business and your family to thrive here. Achieving that requires an economic turnaround, and every one of us has a role in driving it. To get involved in the economic imperative for growth, visit our website and join the effort!