ALICE IN THE LABOR FORCE
According to the Bureau of Labor Statistics, from 2010 to 2024, the number of workers in Minnesota grew from 2,562,450 to 2,920,470. Most recently, from January to December 2024, the state gained 39,370 workers. During the same period, the unemployment rate increased held relatively steady — only shifting from from 2.8% to 3.3%. These rates were slightly lower than the pre-pandemic rate (3.4% in January 2020).
Minnesota workers face a range of ongoing challenges. The workplace continues to evolve with the incorporation of new technologies, including AI, and the shift to more precarious work arrangements, such as many part-time jobs and hourly employment. These arrangements make it easier for employers to reduce work hours or cut employment altogether when new technology is adopted, the economy ebbs, or financial priorities change. In addition, with the costs of basics increasing, many jobs in Minnesota do not pay enough to provide financial stability in 2024. In Minnesota:
- 32% of full-time workers did not earn enough to afford the ALICE Household Survival Budget for one adult and one school-age child.
- Minimum-wage workers in Minnesota saw an increase in wages to $10.85 per hour in 2024, up from $10.59 in 2023.
- A wage of $20 per hour was not enough to support the ALICE Household Survival Budget for one adult and one school-age child in 47% of Minnesota counties. (See the ALICE Wage Tool.)
Data on financial hardship among Minnesota workers shows variations in three cross-cutting areas: industry sector, occupation, and work arrangements.
Industry sector: There are workers below the ALICE Threshold across all industry sectors in Minnesota. Among the 10 largest industry sectors, the percentage of workers living in households below the ALICE Threshold varied from 8% in Finance and Insurance to 39% in Accommodation and Food Services.
Rates of Financial Hardship Vary by Industry Sector
Industry Sector Employment by ALICE Status, Minnesota, 2024
| Industry Sector | Total Workers |
Poverty
ALICE
Above ALICE Threshold
|
|---|---|---|
| Health Care and Social Assistance | 532,328 | |
| Manufacturing | 396,480 | |
| Retail Trade | 328,614 | |
| Educational Services | 280,047 | |
| Professional Scientific and Technical Services | 221,869 | |
| Construction | 198,408 | |
| Finance and Insurance | 178,253 | |
| Accommodation and Food Services | 156,958 | |
| Other Services Except Public Administration | 143,902 | |
| Transportation and Warehousing | 122,449 | |
| Public Administration | 109,774 | |
| Administrative and Support and Waste Management and Remediation Services | 97,169 | |
| Arts Entertainment and Recreation | 66,919 | |
| Wholesale Trade | 59,988 | |
| Agriculture Forestry Fishing and Hunting | 55,622 | |
| Real Estate and Rental and Leasing | 45,786 | |
| Information | 41,216 | |
| Utilities | 21,894 | |
| Management of Companies and Enterprises | 6,811 | |
| Mining Quarrying and Oil and Gas Extraction | 4,906 | |
Note: This table includes wages of full-time workers residing in Minnesota with income from occupations in the listed sectors. Wages include tips. ALICE Threshold status is determined by comparing workers' total household income to the ALICE Household Survival Budget for their household composition and location.
Sources: ALICE Threshold, 2024; U.S. Census Bureau, American Community Survey, 2024
Common occupations (jobs): Many common jobs exist across industry sectors — for example, Customer Service Representatives work in Health Care, Retail Trade, and other fields — so it is also important to look at financial hardship by occupation.
A Large Share of Workers in the 20 Most Common Occupations are Below the ALICE Threshold
Labor Characteristics, Most Common Occupations, Minnesota, 2024
| Most Common Occupations | Total Workers in Occupation Residing in Minnesota | Percent of Workers Below ALICE Threshold | Median Hourly Wage |
|---|---|---|---|
| Registered Nurses | 81,789 | 9% | $43.93 |
| Driver/Sales Workers and Truck Drivers | 66,567 | 20% | $27.33 |
| Retail Salespersons | 56,851 | 32% | $21.96 |
| Customer Service Representatives | 53,528 | 23% | $26.85 |
| Cashiers | 49,341 | 38% | $13.81 |
| Elementary and Middle School Teachers | 48,204 | 11% | $31.73 |
| First-Line Supervisors of Retail Sales Workers | 47,594 | 15% | $29.29 |
| Janitors and Building Cleaners | 45,628 | 31% | $21.96 |
| Personal Care Aides | 42,464 | 44% | $17.82 |
| Teaching Assistants | 41,494 | 40% | $14.64 |
| Nursing Assistants | 40,100 | 45% | $19.52 |
| Laborers and Freight, Stock, and Material Movers, Hand | 38,688 | 22% | $21.96 |
| Cooks | 36,942 | 37% | $17.08 |
| Software Developers | 35,935 | 3% | $58.57 |
| Stockers and Order Fillers | 34,136 | 39% | $19.52 |
| Accountants and Auditors | 33,557 | 5% | $38.56 |
| Miscellaneous Production Workers, Including Equipment Operators and Tenders | 33,344 | 26% | $23.43 |
| Financial Managers | 31,778 | 8% | $46.37 |
| Chief Executives and Legislators | 30,798 | 4% | $97.62 |
| Construction Laborers | 29,589 | 24% | $24.41 |
Note: This table includes wages of full-time workers residing in Minnesota with income from these occupations. Wages include tips. ALICE Threshold status is determined by comparing workers' total household income to the ALICE Household Survival Budget for their household composition and location. Prior iterations of this table used data from the Bureau of Labor Statistics and are not directly comparable.
Sources: ALICE Threshold, 2024; U.S. Census Bureau, American Community Survey, PUMS, 2024
Work arrangements: In 2024 in Minnesota, 67% of people in the labor force worked full-time (35+ hours per week, for 50+ weeks). Yet only about 40% of employed people (age 16+) had the security of a salaried, full-time job. The rest relied on non-standard work arrangements — typically hourly paid work from one or multiple jobs (including part-time and gig work). Hourly and part-time workers are more likely to have fluctuations in income due to schedule changes and variable hours and they are less likely to receive benefits, such as health insurance, paid time off, family leave, or retirement plans.
In Minnesota in 2024, of people in the labor force, 29% worked part time (compared to 26% nationally). Part-time workers were much more likely to be below the ALICE Threshold than full-time workers (34% vs. 12%).
In addition, 32% of people in Minnesota (age 16+) were out of the labor force (not working or looking for work in the past four weeks), compared to 36% nationally. This included those who were retired (18%) and those who were out of the labor force for other reasons, such as disability, health issues, caregiving responsibilities, or student status (14%).