Minnesota’s Economy is Improving but Harsh Disparities Leave Too Many Workers BehindReport: The State of Working Minnesota 2016

Except where otherwise noted, data in this report come from analysis by the Economic Policy Institute of Current Population Survey and Bureau of Labor Statistics data. Latest figures are from 2015, and all wage calculations are inflation adjusted to 2015.

Since the recession, Minnesota’s workers have fared better than

Wisconsin’s.• Minnesota’s

workers are in the labor force at higher rates.

• Minnesotans are more likely to be employed.

• Minnesotans earn higher wages.

Too many working Minnesotans still lack the quality jobs needed to support themselves and their families.

• Wages for low- and middle-wage workers have improved but are still lower than they were in 2000, when adjusted for inflation.

• Many workers earn less than what it takes to support a typical family of three.

• Minnesota’s economic success leaves out too many workers of color.

Mirroring national trends, Minnesota productivity has increased by 9.5

percent since 2007, and by 22.6 percent since

2000.But that hasn’t translated into

higher wages for most workers.

Economic Policy Institute, Understanding the Historic Divergence Between Productivity and a Typical Worker’s Pay: Why it Matters and Why it’s Real, September 2015.

Relatively stagnant wage growth for low- and median-wage workers, coupled with

stronger wage growth at the top, has contributed to greater income inequality.

Too many Minnesota workers aren’t earning enough to make ends meet.Both parents of a typical family need to

earn $17.57 an hour to afford a “basic needs” budget for food, child care, housing and health care – leaving out savings or emergencies.

Minnesota Department of Employment and Economic Development, Cost of Living in Minnesota, 2015. The typical family is a family of three with one adult working full time and the other working part time.

Families can’t afford the basics.

In 2015, more than half of all Minnesotans without a college degree made less than what it takes to support a typical family of three.

Given Minnesota’s tightening labor market and a workforce shortage on the horizon, we can’t afford to leave

any workers on the sidelines.

Minnesota’s workers of color aren’t sharing in the economic

recovery.

All Minnesotans: 3.8%

African Americans: 14.2%

0 2 4 6 8 10 12 14 16

Percent of Minnesota workers unemployed in

2015

Because people of color more often lack full-time work that meets their

skills, they generally have lower incomes than white Minnesotans.

2015 median household income:

• $67,000 for white households• $43,400 for Hispanic households• $30,300 for Black households

U.S. Census Bureau, American Community Survey, 2015.

Policymakers can ensure more Minnesotans can have good jobs and

economic security, by enacting smart policies that will:

• Improve wage and job quality standards;

• Ensure Minnesotans get the education and training they need, and can get to good jobs that make full use of their skills; and• Support low-wage workers trying to move into the middle class.

Expanding access to earned sick leaveThe more than 1 million Minnesotans who don’t have paid sick leave lose wages or their jobs if they take time off to care for themselves or a loved one due to illness.

To learn more: Expanding Earned Sick and Safe Time 

Making child care more affordableWhen families have affordable child care that meets

their needs, parents can work and support their families, children thrive in stable and nurturing settings, and employers have reliable workers.

To learn more: Making Affordable Child Care Available to More Minnesota Families

Improving the Working Family CreditThis tax credit boosts incomes of people across the state working at lower wages, and has long-lasting positive effects on children who receive it.

To learn more: Prioritizing Everyday Minnesotans in State Tax Decisions

Expanding access to driver’s licensesMinnesota can’t afford to keep any workers on the sidelines. We can fill crucial jobs in our economy by allowing all Minnesotans to qualify for driver’s licenses regardless of their immigration status.

To learn more: Driver’s Licenses for All Minnesotans Builds the Economy and Keeps Roads Safe

We can’t afford to leave

workers behind.

Minnesota’s economy depends on it.

Learn more in our report:

mnbudgetproject.org