Minnesota’s population slowing, foreign-born workers fill gap: Report

(FOX 9) - A new report from the Minnesota Chamber of Commerce shows a concerning reality for the future of the state’s population.

Experts say the projections show a significant population growth slowdown, which directly impacts the state’s workforce, which is already experiencing a shortage.

Need for workers outpacing Minnesota’s birth rate

The backstory:

In the past 50 years, Minnesota’s population grew by 50%, but in the next 50 years, it is projected to grow by just 7%.

This means fewer workers in the state. People are a big part of the equation that predicts the state’s economic growth and prosperity.

According to the "Economic Contributions of New Americans in Minnesota" report, there are a few major factors that are contributing to the workforce shortage.

There remains a large group from the Baby Boomer generation that has reached retirement age.

Yet, birth rates are not keeping up to replenish the workforce.

Plus, post-pandemic workforce issues still exist.

Filling the gap

Dig deeper:

According to the report, in the past five years, "New Americans" accounted for roughly 60% of the labor force and employment growth in Minnesota.

Sean O’Neill, the Chamber’s Director of Economic Development and Research said this impacts businesses directly, and in turn, customers. 

"We’ve been coming off of this period, really historic workforce shortages where companies have had to do things like reduce hours or not take on new customers because they just couldn’t fill the job openings that they had at their businesses," said Sean O'Neil with the Minnesota Chamber of Commerce. "As much as we’ve had challenges around the work force so far this decade, it would have been even more severe if we didn’t have that in flow of immigration into the state. We really want to focus on helping businesses in the current moment and help them meet the job demands that they have."

Artificial intelligence:

Researchers said artificial intelligence (AI) could play into this dynamic, but more analysis needs to be done to draw stronger correlations and conclusions.

In the long term, automation may help fill some gaps, but may also create demand for new roles. Experts said the long-term impact is hard to tell at this time.

In the short term, experts say the roles "New Americans" are filling are jobs with less exposure to AI impacts currently, such as production, construction, and agriculture.

Immigration trends:

The Minnesota Chamber of Commerce also mentioned this pool of foreign-born workers grew in the state primarily through legal pathways such as guest worker visas or refugee programs.

What you can do:

Learn more about the report here.