Minnesota economy keeps growingPublished 8:22am Friday, November 29, 2013
With Thanksgiving weekend here, it’s important to give thanks for all the blessings in our life. In Minnesota, we’re lucky to have great friends and family but also a great state. Aside from excellent schools and communities, Minnesota’s economy continues to be a leader among other states.
After gaining 1,200 jobs over the past two months, and 50,000 jobs this year, Minnesota’s unemployment rate has now dropped to 4.8 percent. That’s far below the national rate of 7.3 percent. Already, companies have announced expansions that will add 5,600 jobs over the next two years. That steady growth has meant more tax revenue coming in for the state. Just this month, the Minnesota Management and Budget office announced that revenue had come in $55.8 million over projections. And that kind of strong performance hasn’t gone unnoticed.
Earlier this year, Forbes ranked Minnesota the eighth best state for business. Moody’s, the credit rating agency that helps determine what kind of interest rate the state has to pay on its debts, upgraded the outlook for Minnesota from “negative” to “stable.” In particular, Moody’s cited strong financial management and the avoidance of one-time solutions like the funding shifts that were used under the previous Legislature. These ratings help show Minnesota companies that we are here to support them. We want our businesses to continue to do well and drive our local economies.
That’s why we’re working to lower the cost of doing business. Starting next year, we’ll be cutting the unemployment tax by $346 million. The reduction in the unemployment insurance tax will help support businesses in our community and communities across the state. For the average employer, it will save $150 per employee, with some employers savings as much as $475 per employee or more. This is something that will help every single business, whether it’s in Bemidji or Albert Lea.
As we move forward out of the recession, it’s important to keep supporting our businesses and working to find solutions to the challenges they face. But in Minnesota, we also have a lot of progress to be thankful for already.
District 27A state representative