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Minnesota’s economy is at a crossroads. To sustain and strengthen our state’s economic vitality, we must address two critical imperatives: growing our workforce and fostering the next wave of innovation. Immigration is a key part of the solution.
First, Minnesota needs more workers. Our labor force is smaller today than it was in January 2020, and businesses across the state struggle to find the workers they need to expand and succeed. This challenge is closely tied to other pressing economic issues, such as the need for more housing and child care. We need a workforce to build homes and staff child care centers, yet the labor shortage is a major barrier to meeting those needs. Without a robust workforce, businesses will stagnate and economic growth will be constrained.
Second, Minnesota must continue to be a leader in innovation. Our state has a proud history of pioneering advancements in food and agriculture, health care and medical technology and consumer products. As we look to the future, there is an abundance of opportunities in emerging industries like clean technology, life sciences and advanced manufacturing. But to seize these opportunities, we need to attract top talent — scientists, engineers, entrepreneurs and business leaders who will develop groundbreaking ideas and turn them into thriving companies. Key drivers of this are our state’s higher education systems and private employers who lead the nation in innovation. But, again, we need strategies that retain and attract talent. And immigration is already playing a pivotal role in addressing these challenges.
Data from a recent report by the Minnesota Chamber of Commerce’s “Grow Minnesota!” program show just how essential immigration has become to our state’s economic future. From 2020 to 2024, international migration accounted for 94% of Minnesota’s net population gains, surpassing natural population change as the primary driver of growth. Foreign-born workers contributed 59% of the net increase in employment from 2019 to 2023. Further, evidence shows that immigration to Minnesota is occurring primarily through legal pathways. From 2012 to 2022, Minnesota’s total foreign-born population grew by 26%, while the estimated number of unauthorized immigrants remained flat over the decade. Given Minnesota’s aging population and slow overall population growth, immigration will remain vital to sustaining our workforce and economy in the years ahead.
But it’s not just about numbers — it’s also about skills and innovation. Minnesota’s immigrant population is becoming increasingly educated and entrepreneurial, further strengthening our economy. The share of foreign-born Minnesotans with at least a bachelor’s degree has risen by 7 percentage points since 2010, while the share with less than a high school education has declined by 5 percentage points. More immigrants are working in skilled professions, including management, science and the arts, while fewer are in service jobs. Entrepreneurship among foreign-born Minnesotans has surged, narrowing the gap with native-born entrepreneurs and contributing to job creation and economic growth.
Immigrants also play a critical role in filling high-demand positions in health care, technology and engineering — fields that are essential to Minnesota’s future competitiveness. They bring new perspectives, ideas and global networks that enhance innovation and make Minnesota an attractive place for investment and business expansion. As more immigrants launch startups, develop cutting-edge research and lead businesses, they are not just participating in Minnesota’s economy — they are shaping its future.
