Minnesota vs. United States
Comparative Trends Analysis:
Average Earnings Per Job Growth and Change, 1969-2020
Introduction
Minnesota vs. United States
Minnesota:
2020 Avg. Earnings = $69,012
U.S.:
2020 Avg. Earnings = $69,204
The United States economy has generated an impressive number of jobs since the 1970s. The contrast between the nation's vigorous employment growth and the modest performance of other major industrial countries is striking. Despite this rosy track record, the real (inflation adjusted) wages and salaries of many workers have stagnated or slipped in recent years. This development has provoked concerns about the quality of new jobs. Structural shifts in the composition of employment--from high-wage goods-producing to low-wage services-related sectors--is the culprit most often cited for the deteriorating quality of jobs.
Regions vary greatly in the make-up of their labor force, in their industry composition of employment, and their economic experience. Reviewing and examining recent developments in average earnings per job in Minnesota with comparison to the nation is an important first step in understanding the economic forces at play in Minnesota.
Discussion: Average Annual Earnings Per Job are computed by dividing BEA total industry earnings estimates by the BEA total full- and part-time jobs estimates. No convenient or adequate means exist at the state or regional level for converting the job estimates to a full-time equivalent measure. So, interpret the average earnings per job estimates with caution in consideration of the following issues:
Average earnings per job within industries involving more part-time work is lower than industries involving more full-time work, although there could be little difference in the underlying wage of full-time workers. Such differences could also prevail between states and regions. An increase in the proportion of part-time jobs over time may erode average earnings per job estimates, although full-time earnings per worker may have remained unchanged.
As with per capita income, average earnings per job may be subject to extreme short-run variation, especially in smaller states. Major construction projects relating to building dams, nuclear power plants, and private plant construction projects have caused extreme fluctuations in many smaller states. Such changes typify both small and large agriculture-dependent states owing to the extreme annual variations in farm incomes. Also, Since average earnings per job are just a simple average, it does not account for variations in the distribution of earnings among high- vs. low-wage jobs.
Minnesota Average Earnings Per Job, 1970-2020
Current vs. Constant Dollars
Minnesota Average Earnings Per Job, 1970-2020
Current vs. Constant Dollars
Figure 1.
Figure 1 depicts Minnesota's annual average earnings per job over 1970-2020 in current and constant (2012) dollars. Constant dollar measurements remove the effects of inflation. They allow for comparison of changes in the real purchasing power of Minnesota over time.
When measured in current dollars, Minnesota's average earnings per job increased 815.3%, from $7,540 in 1970 to $69,012 in 2020. When measured in constant 2012 dollars to adjust for inflation, it advanced 72.1%, from $36,060 in 1970 to $62,047 in 2020.
Real Average Earnings Per Job Indices (1969=100): 1969-2020
Real Average Earnings Per Job Indices (1969=100): 1969-2020
Figure 2.
Figure 2 shows Minnesota's real average earnings per job growth in a broader context by offering direct comparisons across time with the United States. The growth indices shown here express each region's real average earnings per job in 1969 as a base figure of 100, and the real average earnings per jobs in later years as a percentage of the 1969 base figure. This method allows for more direct comparison of differences in real average earnings per job growth between regions that may differ vastly in size.
Minnesota's overall real average earnings per job growth was 76.2% over 1969-2020 outpaced the United States' increase of 73.1%.
Average Earnings Per Job as a Percent of the U.S. Average: 1969-2020
Average Earnings Per Job as a Percent of the U.S. Average: 1969-2020
Figure 3.
Figure 3 depicts the trends for average earnings per job relative to the national average by tracing Minnesota average earnings per job as a percent of the national average over 1969-2020.
In 1969, Minnesota's average earnings per job amounted to 98.0% of the national average; in 2020, it approximated 99.7%.
Minnesota Real Average Earnings Per Job:
Annual Percent Change, 1970-2020
Minnesota Real Average Earnings Per Job:
Annual Percent Change, 1970-2020
Figure 4.
Figure 4 displays the short-run pattern of Minnesota's real average earnings per job growth by tracking the year-to-year percent change over 1970-2020. The average annual percent change for the entire 51-year period is also illustrated on this chart to provide a benchmark for gauging periods of relative high--and relative low--growth against the backdrop of the long-term average.
On average, Minnesota's real average earnings per job grew at an annual rate of 1.15% over 1970-2020. The state recorded its highest growth in 2020 (7.15%) and posted its lowest growth in 1974 (-6.45%). In 2020, Minnesota's real average earnings per job grew by 7.15%
Minnesota Real Average Earnings Per Job:
Annual Percent Change and Decade Averages Over 1970-2020
Minnesota Real Average Earnings Per Job:
Annual Percent Change and Decade Averages Over 1970-2020
Figure 5.
Over the past six decades some states have experienced extreme swings in growth, and often such swings have tended to coincide with the decades themselves. Figure 5 again illustrates the annual percent change in Minnesota's real average earnings per job since 1970, but this time they are displayed with average growth rates for the decade of the 1970s, 1980s, 1990s, 2000s, and 2020.
During the 1970s, Minnesota's annual real average earnings per job growth rate averaged 0.59%. It averaged 0.78% in the 1980s, 1.70% throughout the 1990s, 0.70% during the 2000s, 1.37% throughout the 2010s, and 7.15% in 2020.
Real Average Earnings Per Job Growth:
Average Annual Percent Change by Decade
Real Average Earnings Per Job Growth:
Average Annual Percent Change by Decade
Figure 6.
Figure 6 compares the decade average growth rates for Minnesota noted in the previous graph with the corresponding decade averages for the nation.
Relative to nationwide real average earnings per job growth trends, Minnesota trailed the nation over the 1970s (0.59% vs. 0.89%), outperformed the nation over the 1980s (0.78% vs. 0.72%), exceeded the nation in the 1990s (1.70% vs. 1.68%), fell under the nation over the 2000s (0.70% vs. 0.72%), and exceeded the nation over 2010-2019 (1.37% vs. 1.00%). In 2020, growth for Minnesota has topped the national average (7.15% vs. 5.88%).
   
 
Real* Average Earnings Per Job Growth:
Average Annual Percent Change
 
 
 
1.15
0.59
0.78
1.70
0.70
1.37
7.15
 
1.10
0.89
0.72
1.68
0.72
1.00
5.88
 
   

Interactive TableTip: To augment your analysis click on the column headers in the following table to rank and/or sort the data.

   
 
Minnesota:
Average Earnings Per Job, 1969-2020
 
1969
 
7,033
0.200
35,209
100.0
N
97.97
1970
 
7,540
0.209
36,060
102.4
2.42
99.26
1971
 
7,925
0.218
36,358
103.3
0.83
97.80
1972
 
8,289
0.225
36,773
104.4
1.14
95.38
1973
 
9,338
0.238
39,310
111.6
6.90
100.02
1974
 
9,645
0.262
36,774
104.4
-6.45
97.15
1975
 
10,191
0.284
35,864
101.9
-2.47
95.13
1976
 
10,743
0.300
35,841
101.8
-0.06
93.02
1977
 
11,874
0.319
37,196
105.6
3.78
95.67
1978
 
12,928
0.341
37,862
107.5
1.79
96.07
1979
 
13,802
0.372
37,125
105.4
-1.95
94.74
1980
 
14,661
0.412
35,600
101.1
-4.11
93.64
1981
 
15,972
0.449
35,595
101.1
-0.01
93.59
1982
 
16,860
0.474
35,596
101.1
0.00
93.72
1983
 
17,487
0.494
35,415
100.6
-0.51
92.43
1984
 
19,314
0.512
37,691
107.1
6.43
95.70
1985
 
20,084
0.530
37,871
107.6
0.48
95.05
1986
 
21,133
0.542
39,001
110.8
2.98
95.72
1987
 
22,098
0.559
39,562
112.4
1.44
95.55
1988
 
22,832
0.580
39,340
111.7
-0.56
93.54
1989
 
24,223
0.606
39,990
113.6
1.65
95.14
1990
 
25,173
0.632
39,811
113.1
-0.45
94.64
1991
 
25,750
0.653
39,406
111.9
-1.02
93.51
1992
 
27,511
0.671
41,009
116.5
4.07
93.65
1993
 
27,748
0.688
40,356
114.6
-1.59
92.18
1994
 
28,913
0.702
41,191
117.0
2.07
93.54
1995
 
29,334
0.717
40,929
116.2
-0.64
92.82
1996
 
31,160
0.732
42,566
120.9
4.00
94.97
1997
 
32,367
0.745
43,458
123.4
2.10
94.59
1998
 
34,551
0.751
46,026
130.7
5.91
95.95
1999
 
35,955
0.762
47,207
134.1
2.57
95.24
2000
 
38,082
0.781
48,767
138.5
3.30
95.44
2001
 
39,339
0.797
49,386
140.3
1.27
94.85
2002
 
40,483
0.807
50,163
142.5
1.57
95.47
2003
 
42,165
0.824
51,172
145.3
2.01
96.59
2004
 
44,527
0.844
52,730
149.8
3.04
97.96
2005
 
44,932
0.869
51,720
146.9
-1.92
96.32
2006
 
45,643
0.893
51,100
145.1
-1.20
94.22
2007
 
47,203
0.916
51,524
146.3
0.83
95.59
2008
 
48,764
0.943
51,698
146.8
0.34
96.95
2009
 
47,548
0.941
50,550
143.6
-2.22
95.02
2010
 
49,792
0.957
52,004
147.7
2.88
95.41
2011
 
51,814
0.982
52,780
149.9
1.49
96.61
2012
 
54,261
1.000
54,261
154.1
2.81
98.07
2013
 
54,918
1.014
54,184
153.9
-0.14
97.86
2014
 
56,251
1.029
54,672
155.3
0.90
98.01
2015
 
57,709
1.031
55,965
159.0
2.36
98.81
2016
 
58,048
1.041
55,736
158.3
-0.41
98.62
2017
 
60,067
1.061
56,640
160.9
1.62
98.92
2018
 
62,019
1.083
57,256
162.6
1.09
99.25
2019
 
63,654
1.099
57,909
164.5
1.14
98.55
2020
 
69,012
1.112
62,047
176.2
7.15
99.72
Source: Calculations by the United States Regional Economic Analysis Project (US-REAP)
with data provided by the U.S. Department of Commerce, Bureau of Economic Analysis
March 2022
REAP_PI_SA1400_1400_PN
 
   

Interactive TableTip: To augment your analysis click on the column headers in the following table to rank and/or sort the data.

   
 
United States:
Average Earnings Per Job, 1969-2020
 
1969
 
7,179
0.200
35,938
100.0
N
1970
 
7,596
0.209
36,328
101.1
1.08
1971
 
8,103
0.218
37,174
103.4
2.33
1972
 
8,691
0.225
38,554
107.3
3.71
1973
 
9,336
0.238
39,301
109.4
1.94
1974
 
9,928
0.262
37,851
105.3
-3.69
1975
 
10,713
0.284
37,701
104.9
-0.40
1976
 
11,549
0.300
38,530
107.2
2.20
1977
 
12,412
0.319
38,881
108.2
0.91
1978
 
13,457
0.341
39,412
109.7
1.37
1979
 
14,568
0.372
39,185
109.0
-0.58
1980
 
15,657
0.412
38,018
105.8
-2.98
1981
 
17,066
0.449
38,034
105.8
0.04
1982
 
17,989
0.474
37,982
105.7
-0.14
1983
 
18,920
0.494
38,317
106.6
0.88
1984
 
20,181
0.512
39,383
109.6
2.78
1985
 
21,130
0.530
39,844
110.9
1.17
1986
 
22,078
0.542
40,746
113.4
2.26
1987
 
23,126
0.559
41,405
115.2
1.62
1988
 
24,408
0.580
42,055
117.0
1.57
1989
 
25,460
0.606
42,032
117.0
-0.05
1990
 
26,599
0.632
42,066
117.1
0.08
1991
 
27,537
0.653
42,141
117.3
0.18
1992
 
29,378
0.671
43,791
121.9
3.92
1993
 
30,101
0.688
43,778
121.8
-0.03
1994
 
30,909
0.702
44,034
122.5
0.58
1995
 
31,605
0.717
44,097
122.7
0.14
1996
 
32,810
0.732
44,820
124.7
1.64
1997
 
34,218
0.745
45,943
127.8
2.51
1998
 
36,011
0.751
47,969
133.5
4.41
1999
 
37,751
0.762
49,566
137.9
3.33
2000
 
39,903
0.781
51,098
142.2
3.09
2001
 
41,477
0.797
52,070
144.9
1.90
2002
 
42,406
0.807
52,546
146.2
0.92
2003
 
43,655
0.824
52,981
147.4
0.83
2004
 
45,456
0.844
53,830
149.8
1.60
2005
 
46,648
0.869
53,695
149.4
-0.25
2006
 
48,442
0.893
54,233
150.9
1.00
2007
 
49,382
0.916
53,902
150.0
-0.61
2008
 
50,298
0.943
53,324
148.4
-1.07
2009
 
50,040
0.941
53,199
148.0
-0.23
2010
 
52,191
0.957
54,509
151.7
2.46
2011
 
53,633
0.982
54,633
152.0
0.23
2012
 
55,327
1.000
55,327
154.0
1.27
2013
 
56,120
1.014
55,370
154.1
0.08
2014
 
57,392
1.029
55,782
155.2
0.74
2015
 
58,403
1.031
56,638
157.6
1.53
2016
 
58,859
1.041
56,514
157.3
-0.22
2017
 
60,726
1.061
57,261
159.3
1.32
2018
 
62,489
1.083
57,690
160.5
0.75
2019
 
64,592
1.099
58,762
163.5
1.86
2020
 
69,204
1.112
62,220
173.1
5.88
Source: Calculations by the United States Regional Economic Analysis Project (US-REAP)
with data provided by the U.S. Department of Commerce, Bureau of Economic Analysis
March 2022
REAP_PI_SA1400_1400_PN
 
   
Copyright © 2022. Pacific Northwest Regional Economic Analysis Project (PNREAP). All Rights Reserved.

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