2025 Report: New Americans Drive Minnesota’s Population Growth and Labor Force
"This Is US" coverage, and the March/April magazine issue, made possible by the deep underwriting of Unidos MN.
As Minnesota confronts an aging population, declining birth rates, and persistent workforce shortages, one reality is becoming increasingly clear: Immigration is central to the state’s economic story.
According to The Economic Contributions of New Americans in Minnesota, a February 2025 report by the Minnesota Chamber Foundation, immigrants — referred to in the report as “New Americans” — have been the primary driver of population growth, workforce expansion, and long-term economic stability across Minnesota.
A Turning Point
From 2020 to 2024, immigration accounted for an overwhelming 94 percent of Minnesota’s net population growth. For decades, population growth was fueled primarily by births exceeding deaths, but this is no longer the case.
Minnesota is facing a demographic slowdown driven by an aging population and fewer births, alongside years of residents leaving the state for other parts of the country, such as North Carolina, South Carolina, and Alaska.
In many counties, particularly outside the Twin Cities metro, immigration has been the difference between growth and decline. Without international migration, dozens of Minnesota counties would have decreased in population, which threatens local economies and school enrollments.
Between 2019 and 2023, foreign-born workers accounted for nearly 60 percent of all employment growth in the state. This growth helped counter the impact of post-pandemic labor shortages that left employers struggling to fill positions across multiple sectors. As retirements accelerate, and fewer young workers enter the traditional labor force, immigration has become one of the only methods to sustain Minnesota’s workforce.
Factors contributing to the decline in young workers entering the labor workforce include an increase in college and graduate school enrollments, rising childcare costs forcing young parents to leave their careers, and the continuing prevalence of alternative positions such as Uber and Instacart options and freelance work.
Minnesota ranks fourth in the nation for immigrant labor force participation.
Filling essential roles
Immigrants are concentrated in some of Minnesota’s critical industries. More than half of the state’s foreign-born workforce is employed in health care, education, manufacturing, and professional or technical services — sectors that are foundational to both urban and rural communities.
In Greater Minnesota, immigrants often fill essential roles in hospitals, long-term care facilities, food production, and manufacturing plants. In metropolitan areas, they contribute across health care systems, technology firms, and professional services. Their presence allows businesses to remain competitive and communities to retain vital services.
The report also highlights a major shift in the education and skill levels of Minnesota’s immigrant population. Since 2010, the number of foreign-born residents with a bachelor’s degree or higher has nearly doubled. Immigrants are increasingly employed in management, science, engineering, and other high-skilled occupations, while fewer are working in low-wage service roles.
National research cited in the report shows immigrants are disproportionately responsible for innovation and entrepreneurship, founding a significant share of Fortune 500 companies and contributing heavily to new patents and technological advancements. Minnesota’s ability to attract and retain this talent will be critical to future growth in industries such as health care, advanced manufacturing, clean energy and life sciences.
Looking ahead
Immigrants, however, still make up a smaller share of Minnesota’s population than the national average. As the state faces long-term labor shortages and slower economic growth, the report indicates, immigration is an economic necessity.
Even as immigrants face heightened uncertainty and fear amid current events, their role in Minnesota’s economy has never been more essential. In short, Minnesota’s future workforce, innovation pipeline, and community vitality are increasingly tied to its ability to welcome, integrate, and support New Americans. The data is clear that immigration is helping Minnesota define what comes next.
For 2025 coverage, Minnesota Women’s Press earned a community leadership award, three photography awards, and four editorial awards, including for coverage of social issues and for our Spring 2025 “Know Your Rights” special section supported by Unidos MN. Our publisher was named Journalist of the Year by Violence Free Minnesota for gender-based violence coverage.
