MINNESOTA CHAMBER FOUNDATION QUARTERLY ECONOMIC SNAPSHOT: WINTER 2023

News of layoffs in large U.S. companies, rising interest rates, and forecasts of a mild recession in 2023 have spread a sense of gloom across the U.S. economy. But so far, economic indicators in Minnesota and the U.S. have largely defied such pessimism. 

Minnesota’s unemployment rate remains at a very low rate of 2.5%, despite an uptick in recent months. The state’s private sector added 19,800 jobs in the fourth quarter. Minnesota's GDP grew by 2.3% in the third quarter (most recent data available), and the U.S. economy grew by 2.9% in the fourth quarter, showing continued expansion through the end of the year. Inflation cooled further in the fourth quarter, providing some relief to consumers and businesses and widening the target for the Federal Reserve to achieve a “soft landing” in 2023. 

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