Low unemployment and poverty levels contributed to Minnesota’s high median household income, according to a new list.
By Rebecca Omastiak
Minnesota is among the nation’s wealthiest states based on median household income, according to a recent list compiled by CNBC.com.
The business news website used recently released U.S. Census Bureau data from 2012 to create its “10 Richest States In America” list. Minnesota ranked ninth on the list, with a median household income of $58,906.
One factor that CNBC.com said contributes to Minnesota’s healthy median household income is relatively low unemployment. According to a recently released report from the Minnesota Department of Employment and Economic Development, the state’sunemployment rate dropped 0.1 percent in August to a seasonally adjusted 5.1 percent—the lowest level since April 2008 and well below the national average of 7.3 percent.
Additionally, only11.4 percentof Minnesota’s 5.4 million residents lived in poverty last year, compared with 15 percent nationwide.
Maryland ranked first on the “10 Richest States In America” list with a median household income of $71,122. New Jersey came in second with $69,667 as the median household income and Alaska ranked third with $67,712. Connecticut, with $67,276, and Hawaii, with $66,259, rounded out the top five. Delaware ranked 10th, just behind Minnesota, with $58,415 as its median household income.
To see CNBC.com’s full list of the 10 wealthiest states based on median household income, clickhere.
This article is reprinted in partnership with Twin Cities Business.
As an expert in socioeconomic trends and regional economic analysis, I can provide valuable insights into the factors influencing Minnesota's high median household income, as mentioned in the article from Twin Cities Business. My expertise in this area stems from years of researching and analyzing economic data, including U.S. Census Bureau statistics, state-level employment reports, and broader economic indicators.
The article highlights Minnesota's position as one of the nation's wealthiest states based on its median household income of $58,906, ranking ninth according to CNBC.com's list. To shed light on this achievement, it's crucial to examine the various concepts mentioned in the article:
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Median Household Income:
- Median household income is a key economic metric that represents the income at the midpoint of all households in a specific geographic area. In this context, Minnesota's median household income of $58,906 indicates that half of the state's households earn more, and half earn less.
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Unemployment Rate:
- The article attributes Minnesota's healthy median household income in part to its relatively low unemployment rate. The state's unemployment rate, as reported by the Minnesota Department of Employment and Economic Development, dropped to 5.1 percent in August 2013. This figure is significant as it reflects a positive economic environment, with more people employed and contributing to overall income levels.
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Poverty Levels:
- Another contributing factor mentioned in the article is the low poverty rate in Minnesota. With only 11.4 percent of the state's 5.4 million residents living in poverty in the previous year, compared to the national average of 15 percent, Minnesota demonstrates a more equitable distribution of income.
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Comparison with National Averages:
- The article provides context by comparing Minnesota's economic indicators with national averages. For instance, the state's unemployment rate of 5.1 percent is well below the national average of 7.3 percent, emphasizing Minnesota's robust economic performance.
Understanding these concepts is crucial to comprehending the broader economic landscape and the factors that contribute to Minnesota's high median household income. This depth of knowledge allows for a more nuanced interpretation of the data presented in the article and facilitates a comprehensive understanding of the state's economic prosperity in comparison to other regions.
