Governor Walz on Minnesota's Economic Growth, Lowest Unemployment Rate in Over Two Decades

Press Release

Governor Tim Walz and Lieutenant Governor Peggy Flanagan reacted today to Minnesota reaching its lowest unemployment rate since 1999, at 2.7 percent. Minnesota gained 5,200 jobs in February, an increase from the 4,800 added in January. Over the last year, Minnesota has gained over 60,000 jobs.

"Minnesota is back to work," said Governor Walz. "I am proud to see that our state's economy is strong and growing due to the hard work of Minnesota workers and smart economic policy. Our record low unemployment numbers are further proof that our economy is continuing to grow. I am grateful to our Department of Employment and Economic Development for their work to support businesses and workers, so we could get to this point. Now, with our historically low unemployment rate and our sizeable budget surplus, we need to remain focused on investing in our workers, building our workforce, lowering costs for families, and growing our economy for the benefit of generations of Minnesotans to come."

"Minnesota is in a strong economic position, thanks to our workers and our businesses -- but we know that there is still work to do," said Lieutenant Governor Flanagan. "That's why our budget makes critical investments in expanding economic opportunity and supporting working families to ensure we have a workforce that can meet the demands of today and into the future."

In addition to Minnesota's low unemployment rate, the state has a historic surplus and is in a strong economic position to make record investments toward continued economic growth and put money into the hands of Minnesotans. Minnesota Management and Budget released an economic forecast in February showing that Minnesota's state budget surplus is projected to be a historic $9.25 billion for fiscal year 2022-23.

The Governor and Lieutenant Governor's proposed investments to expand economic opportunity in the Walz-Flanagan Budget to Move Minnesota Forward include:

Walz Checks
Governor Walz and Lieutenant Governor Flanagan's revised budget proposes distributing Walz Checks of up to $1,000 directly to Minnesotans. Single tax filers would receive a payment of $500 while a married couple would receive a payment of $1,000. More than 2.7 million Minnesota households would receive a Walz Check under this proposal.

Economic Growth
The Governor and Lieutenant Governor also propose investing $73 million to respond to the inflationary pressures faced by the retirees on Minnesota public pension plans and $20 million in the Main Street Economic Revitalization program to continue providing funding to help communities rebuild and recover. The Governor and Lieutenant Governor also recommend an additional investment in the Small Business Partnership grants to allow nonprofits to provide business development services to even more Black, Indigenous, and People of Color small business owners and entrepreneurs throughout the state.

Increase Educational Opportunities
The Walz-Flanagan budget recommends $10 million annually to expand rigorous coursework and career and technical education for historically underserved students and students in Greater Minnesota. It also recommends a $15 million investment in the Tech Youth Training program -- to prepare the future of our workforce, Black, Indigenous and People of Color (BIPOC) students and youth to meet the demands of Minnesota's growing tech industry and leave the program with connections to employer ready to hire into the highest-paying career tracks in the state.

Cut Taxes for Families and Small Businesses
Governor Walz and Lieutenant Governor Flanagan propose reducing taxes for families and small businesses to help level the playing field for the middle class and allow workers to keep more of their income. The Governor and Lieutenant Governor's budget makes a one-time investment of $2.73 billion to replenish the Unemployment Insurance Trust Fund, which would prevent pandemic-related tax increases for businesses. To provide tax cuts for middle class families with child care costs, the budget recognizes the challenges of the current environment by increasing the income threshold and maximum credit amount for Minnesota's Dependent Care Credit, providing tax cuts to more Minnesota taxpayers. This proposal would also update Minnesota's Newborn Credit to be available for all taxpayers regardless of marital status. Additionally, the budget proposes to increase eligibility for Minnesota's K-12 Education Credit to ensure families and students are able to afford the supplies necessary to get a world-class Minnesota education.

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