Fed forecasts drop in Minn. job growth and jobless ratesby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — The Federal Reserve Bank of Minneapolis has tweaked its economic outlook for Minnesota.
This past December, the bank forecast Minnesota would achieve a job growth rate of 1.9 percent for 2011. But Fed regional economist Toby Madden said it looks like the state will fall short of that initial prediction.
"Now, we only expect about a half percent increase based on our statistical model, But next year, we expect about a 1.7 percent increase in employment," he said.
Meanwhile, the Fed's statistical models indicate Minnesota's unemployment rate will be lower than originally expected. The Fed had predicted a statewide year-end unemployment rate of 6.9 percent. Now, the bank expects a rate of 6.6 percent.
The Fed also forecasts that Minnesotans' overall personal income will rise by about 7 percent this year, a bit above the long-term historical average of 6.5 percent.