The Minneapolis-St. Paul-Bloomington metro area has an overall grade of C, ranking 33.1th percentile out of 50 US metros, with a labor demand composite score of 4.16. This city's economic character is most defined by its near median labor demand and bottom tier unemployment rate of 4.50%, indicating a mix of stagnant job growth and a relatively high number of unemployed individuals. The labor demand and unemployment metrics are the most telling, with employment growth at -0.10% YoY and weekly hours 0.766% below trend.

Labor Demand

The employment growth rate in Minneapolis-St. Paul-Bloomington is -0.10% YoY, and weekly hours are 0.766% below trend, signaling a contraction in labor demand. This combination indicates that the city is experiencing a decline in job growth, with hours worked also decreasing, suggesting a lack of genuine demand expansion. The labor market is not absorbing new workers at a rate that would indicate strong economic growth.

Unemployment

The unemployment rate in Minneapolis-St. Paul-Bloomington is 4.50%, ranking in the bottom tier at the 16th percentile. This indicates that the labor market has some slack, making it relatively easier for businesses to hire workers. However, the practical implication for a business trying to hire here is that while it may be easier to find workers, the local consumer demand may be weaker due to the higher unemployment rate.

Wage Growth

The year-over-year wage growth in Minneapolis-St. Paul-Bloomington is +1.64%, ranking below average at the 20th percentile. This moderate wage growth rate suggests that labor costs for employers are rising, but at a slower pace than in many other cities. The implication for worker purchasing power is that wages are increasing, but not at a rate that would significantly boost consumer demand.

Cost of Living

Minneapolis-St. Paul-Bloomington has a cost of living score with a PSF of $215/sqft, which is decreasing at a rate of -0.9% YoY, and an earnings ratio of $39.84/hr, resulting in a ratio of 5.40. With a percentile rank of 41, the city is near median in terms of affordability. This means that the city is neither particularly expensive nor affordable, and businesses may not have a significant talent attraction advantage without offering wage premiums.

Labor Force Growth

The civilian labor force in Minneapolis-St. Paul-Bloomington is shrinking at a rate of -1.13% YoY, indicating a contraction in labor supply. This implies that the hiring capacity for businesses may be limited, as the pool of available workers is decreasing. The city's labor force growth is in the bottom tier, ranking 12th percentile, which poses a structural headwind for hiring.

Building Permits

The year-over-year change in building permits in Minneapolis-St. Paul-Bloomington is -1.17%, indicating a slight tightening of housing supply. This signals that future affordability and workforce accommodation may be at risk, as the supply of new housing is not keeping pace with demand. The city's building permits growth is near median, ranking 54th percentile, but the negative growth rate is a concern.

Days on Market

The current median days on market in Minneapolis-St. Paul-Bloomington is 33 days, with a YoY change of +0.0%. This indicates a relatively slow market, ranking below average at the 20th percentile. For a worker relocating to this city, the housing market is not particularly competitive, making it more accessible to find a home.

Office Economy

The share of professional and office workers in Minneapolis-St. Paul-Bloomington is 0.88, ranking in the bottom tier at the 14th percentile. This indicates that the city has a relatively shallow talent pool in professional and office sectors, making it less suited for tech, finance, or consulting businesses. The city's office economy is more geared towards industrial or logistics-dominant businesses.

The Minneapolis-St. Paul-Bloomington metro area offers businesses a mix of relatively low labor costs and a slow-growing labor market, but the single biggest risk or constraint is the shrinking labor force, which poses a significant challenge for hiring and talent attraction. The city's lack of genuine labor demand expansion and limited labor supply growth make it essential for businesses to carefully consider these factors when making location decisions. Overall, the city's economic character is defined by its stagnant job growth and relatively high unemployment rate, making it a challenging location for businesses that rely on a strong and growing labor market.