Skip to main content
Updated:
Original:

Fed outlook: Minnesota job picture good, but don't expect a fat raise

Author:

Economists with the Federal Reserve Bank of Minneapolis are expecting moderate growth in the state's economy in 2014.

MPR News reports that involves a 1.2 percent growth in employment, with projections that Minnesota's unemployment rate will stand at 4.3 percent by the fourth quarter of this year. The Star Tribune calculated that means the state will add about 35,000 jobs this year, slightly fewer than in 2013.

The Pioneer Press noted that the Minneapolis Fed warned workers that likely won't translate into significantly bigger paychecks. Projections for the state released on Monday indicated wages for Minnesotans may go up 2 percent to 3 percent this year.

"Businesses are not generally raising wages much in order to attract workers, nor are businesses broadly expecting to offer substantial wage increases in 2014," the Fed noted in a news release.

Employment numbers will vary depending on the sector. Construction and finance-related jobs are expected to increase as part of the housing market recovery. But a contraction is forecast in service-related and retail jobs. The analysis also shows that Minnesota's labor force continues to shrink, a trend that started before the recession and continued during the downturn.

“Personal income is expected to grow faster, and the unemployment rate is expected to fall, and housing starts are expected to continue next year,” said Toby Madden, regional economist at the Minneapolis Fed.

The Star Tribune analysis suggested that greater Minnesota businesses have a more positive outlook than their metro area counterparts. About 80 percent of outstate businesses were optimistic, while 68 percent of businesses in the Twin Cities were optimistic.

The Fed also released its annual survey of businesses and manufacturers in the Fed's Ninth District, which includes much of the Upper Midwest. The forecast showed that they expect increased productivity and more sales and investment.

Next Up

hospital, emergency room

Driver killed after other motorist crosses into opposite lane

The head-on crash occurred early Thursday, just north of the Twin Cities.

shot clock

MSHSL approves shot clock for Minnesota varsity basketball

Shot clocks will be required at all varsity games beginning in 2023-24.

Redmons Popcorn Colbert screengrab

Popcorn shop featured on 'The Late Show' has to close 2 days later

A county inspection after the national TV appearance found code violations.

covid, vaccine

Minnesotan infected with omicron was vaccinated, had booster shot

The Hennepin County man received his booster shot in early November.

Timothy William Tuit

2 people plead guilty in fatal Dakota County home invasion

Two others charged in the incident will go to trial next year.

south lake minnetonka police department

25-year-old arrested after multi-city police chase in western suburbs

Police were called for a welfare check but learned it was a domestic violence incident.

Screen Shot 2021-12-02 at 8.34.54 AM

After getting COVID, Harrison Smith still not considering vaccine

The Vikings safety says he doesn't plan on getting vaccinated.

covid

First omicron variant COVID case detected in MN

The individual is an adult male who lives in Hennepin County and had recently traveled.

wright county Sheriff Sean Deringer

Minnesota sheriff bashes MPD, 'disgusted' by officers' actions

The sheriff said he will no longer defend the Minneapolis Police Department.

Screen Shot 2021-12-02 at 7.59.52 AM

More than 2 years after announcing, Duck Donuts finally opens at MOA

The grand opening of the new location took place Wednesday.

Related