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Business and Economic News
Sarah Thamer, Nina Moini and Ellie Roth
Updated:

Report: Immigrants make up increasing share of Minnesota’s overall workforce

People pose for a portrait
From left to right: Ezequiel Quijada, Fernando Mellado-Barboza and Saul Mellado co-owners of Bodega 42 in Apple Valley, Minn.
Kerem Yücel | MPR News 2023

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A new report released by the Minnesota Chamber Foundation highlights the contributions of immigrants to the state's economy.

According to the report, nearly 60 percent of the state’s total labor force and employment growth came from foreign-born workers from 2019 to 2023.

Officials with the foundation say the report is based on 16 years of research and highlights how immigrants fill essential roles in key industries like agriculture, health care and manufacturing. 

“Minnesota’s economy and workforce depend on a strong pipeline of talent, and immigration has become the leading driver of our state’s population growth,” said Sean O’Neil, director of economic development and research at the Minnesota Chamber Foundation. “With foreign-born workers accounting for the majority of recent employment gains, it’s clear that New Americans are playing a crucial role in filling workforce gaps and keeping our economy competitive.”

Authors of the report found that smaller counties in greater Minnesota may disproportionately benefit from the added population base that immigration provides. According to the findings, 51 of Minnesota’s 87 counties had more deaths than births from 2020-2023, making them dependent on both domestic and international migration. 

O’Neil said the report relies on census data, including the American Community Survey and annual population estimates.

The report also shows Minnesota’s total labor force and employment gains this decade have been largely driven by immigration. Findings show the state added more than 100,000 foreign-born workers to the labor force from 2010-2023.

The data is not surprising to Abdiwahab Mohamed, assistant commissioner with the Minnesota Department of Employment and Economic Development who leads the Office of New Americans.

Mohamed, an immigrant from Kenya, says the Office of New Americans was established about three years ago, but the demand for resources for immigrants looking to get into the workforce has been there long before that.

“I'm really happy specifically the chamber put out this report, because the business community has been suffering and not getting the employees they need, and this shows the work that we all have been doing,” Mohamed said.

While Minnesota had the 4th highest foreign-born labor force participation among states in 2023, the report finds immigrant entrepreneurship rates are still among the lowest in the country.

Despite this, over the last several years, there have been local efforts to foster immigrant business ownership. In 2023, the Ignite Business Women Investment Group and the African Career, Education and Resources or ACER, purchased the Shingle Creek Center, a strip mall in Brooklyn Center. The $5.2 million purchase was inspired by the growth of businesses run by African immigrants in the western Twin Cities suburbs. 

Immigrant resource fairs also play a key role offering guidance for those looking to start a business. 

Among the findings in the report, Minnesota has the 23rd highest percentage of foreign-born residents in the U.S., but the 44th highest share of immigrant business owners.