Minnesota’s Labor Shortage

Minnesota is facing a significant shortage of workers. At the Minnesota Demographic Center’s forecasted rates of labor force participation and dwindling population growth, we could expect as little as 0.3% average annual employment growth between 2018 and 2025. Although recent labor force and employment estimates have been more favorable than what was originally forecast in 2017, there is still cause for concern that Minnesota’s shortage of talent will impact economic growth in the near future.

Explore the interactive charts below to understand the implications of this shortage of critical talent, and how we might be able to address it collectively. Or, download the one-page report on targeted strategies.

Total Estimated Talent Shortage by 2025: 317,000

MN Labor Shortage Report Download (2019 Release)

MN Labor Shortage Report Download (2017 Release)

How many more workers might we need in Minnesota to keep economic growth strong?

What key strategies should we explore to address Minnesota’s labor shortage, and what impacts could they have?

What additional impact could increased immigration and reduction of employee layoffs have on reducing Minnesota’s labor shortage?

Can I do my own calculations? Show me the numbers.

Explore the calculator below to see how these different population-level initiatives–from youth employment to equity–could help us narrow the talent shortage. You’ll see quickly that no single effort can meet all of Minnesota’s workforce needs, and regardless, we will need additional talent to move to Minnesota and innovation and automation in our workplaces.

Note: To make the calculator work properly, enter the percent you would like to close the specified gap–with a value up to 100 for each input. If you enter any numbers over 100, your results will likely be outside the realm of possibility. We have done our best to provide input options that are aggressive, but also possible to achieve by 2025.

Created October 2016 with funding from MSPWin. Updated March 2017 and May 2019 with additional support from MSPWin. Created by Erin Olson of RealTime Talent.

Sources: US Census Bureau Population Estimates Program, 2017; IPUMS version of the US Census Bureau’s American Community Survey, 2013-2017; MN Demographic Center Population Projections, 2017; MN DEED dislocated worker estimates; 2017. Committee for a Responsible Federal Budget (retirement estimate and employment growth-to-GDP relationship). Clip art “Equity” by Bruno Castro, “Experience” and “Family” by Adrien Coquet, Noun Project. Each target and impact listed above is contingent upon the others. Where projections do not exist, the most recent ACS data on employment and demographics are used to develop scenarios. Advising on the original version of this report was provided by the MN Population Center and Wilder Research in 2016.