January 2026 MCCE Board Member Newsletter Article
The Economic Imperative for Growth:
Why Minnesota’s competitiveness can’t wait
Doug Loon
President and CEO
Minnesota Chamber of Commerce
Minnesota’s economy has long been defined by strong fundamentals: an educated workforce, globally competitive industries and communities that value innovation and quality of life. These strengths remain real and worth protecting. But the data are increasingly clear: Minnesota is losing economic momentum. The Economic Imperative for Growth is a new, multi-year initiative led by the Minnesota Chamber to accelerate our state’s economic competitiveness.
Across key indicators – GDP per capita, labor force growth and net domestic migration – Minnesota now ranks in the lower half of states.
GDP per capita: Accelerating growth and prosperity in Minnesota
For decades, Minnesota outperformed the nation in output per person – a measure that reflects both productivity and standard of living. But that advantage has eroded. Over the past decade, Minnesota’s per capita GDP grew at just 1.0% annually, compared to 1.8% nationally. Why does this matter? Per capita growth is the most direct measure of prosperity. It reflects how much value we’re creating for every person in the economy – driving wages, consumption and investment. Slower growth means declining competitiveness and reduced opportunity.
Labor force growth: Growing Minnesota’s workforce
Minnesota’s workforce has long been one of our greatest strengths: highly educated, productive and deeply committed. But it is shrinking relative to demand. The state’s labor force has grown by only 0.2% annually since 2019, and today there are nearly two job openings for every job seeker. This tight labor market not only constrains growth, but it limits production and weakens overall competitiveness. The causes are structural – an aging population, declining birth rates and slowing labor participation.
Net domestic migration: Delivering better value — not just higher costs
Perhaps the most pressing long-term challenge is Minnesota’s migration trend. For 20 of the past 24 years, more people have left our state than moved here. From 2020 to 2024, Minnesota ranked 41st in net domestic migration, losing nearly 48,000 residents to other states. This is not inevitable. In the 1990s, Minnesota was a net attractor of people. Rising costs and regulatory burdens are moving those opportunities and people elsewhere.
This is not the result of a single policy decision or one economic cycle. It is the cumulative impact of rising costs, increasing complexity, and intensifying competition from peer states that are moving faster to attract talent and capital.
For Minnesota businesses, these trends show up every day.
What the economic imperative means for Minnesota businesses
When growth doesn’t keep up with other states, businesses face real consequences. Employers hesitate before expanding here, and investment dollars could flow to other states with lower-cost operating environments. Workforce shortages persist because the right workers with needed skills are not available as many workers are choosing to live elsewhere, creating long-term challenges for businesses trying to grow.
Rising costs and regulatory complexity touch every aspect of business operations: from energy and transportation to hiring, training and retaining skilled workers. Housing affordability and infrastructure capacity can influence whether a business relocates, expands or scales back. The economic imperative is about ensuring Minnesota remains a place where businesses can grow, compete and thrive, creating opportunities for employees and communities alike.
Why competitiveness matters to employees and communities
Economic competitiveness is not just a headline – it shapes real lives. When businesses succeed, workers benefit from better wages, benefits and advancement opportunities. When companies struggle or slow investment, local economies feel the impact: fewer jobs, less customer spending and constrained community resources.
The role of policy and business advocacy
At the Minnesota Chamber, our mission – alongside our Chamber Federation partners, a statewide network of nearly 70 local chambers and regional business organizations – is to support policies that help Minnesota businesses compete – policies that reduce unnecessary regulatory hurdles, stabilize costs, strengthen workforce pipelines and promote innovation. These efforts are not abstract, they have a direct impact on the bottom line for businesses of all sizes, in every region of the state.
By helping businesses navigate these challenges, we can ensure that Minnesota remains an attractive place for investment, talent and entrepreneurship. A competitive state economy supports not only large employers but also the thousands of small and mid-sized businesses that make communities vibrant.
Looking ahead
The economic imperative facing Minnesota is clear: business growth drives opportunity. Growth creates jobs, strengthens communities and ensures that Minnesota remains a place where families can thrive.
For Minnesota businesses, the choice is immediate: adapt and invest in the current environment, advocate for smart policy and focus on competitiveness – or risk falling further behind. I encourage local chamber and business leaders to take an active role in shaping Minnesota’s economic turnaround. Join the effort by signing up to stay informed, participate in advocacy and engage with other leaders working to advance Minnesota’s Economic Imperative for Growth. Sign up here.
Minnesota’s future will be defined by how well its businesses – and the policies that support them – can compete. Let’s meet this economic imperative for growth with urgency, focus and a shared commitment to growth.