Have you ever thought about if Missouri or Minnesota has a better economy? In this economic comparison, we’ll look at things like GDP growth, jobs, income, and living costs. We want to find out which state has better chances for people and businesses. Missouri and Minnesota each have their own economic features and issues. We’ll highlight which state has the true economic edge.
Key Takeaways
- Missouri had the sixth lowest cost of living in the United States for the third quarter of 2024.
- Missouri’s cost of living index for Q3 2024 was 89.0, below the national average of 100.0.
- Joplin, Missouri, had the lowest cost of living index among participating cities at 85.2.
- Missouri ranks 29th in economic outlook for 2024, while Minnesota ranks 44th.
- Top Marginal Personal Income Tax Rate in Missouri is 5.57% on average.
- Missouri’s housing index stands at 78.6, contributing to lower overall living costs.
- The minimum wage in Minnesota is higher than Missouri, affecting labor cost structures.
Overview of Missouri’s Economy
Missouri’s economy is strong and growing. It hit $448 billion in GDP in 2023, growing at 2.6%. Now, it ranks 29th in economic outlook for 2024.
GDP and GDP Growth
The GDP of Missouri shows its economic health and growth. From 2008 to 2024, its GDP has risen steadily. This rise reflects how the economy follows both local and national patterns. Looking at how Missouri’s rank has changed over the years is eye-opening:
| Year | Economic Outlook Rank |
|---|---|
| 2008 | 25th |
| 2009 | 23rd |
| 2010 | 15th |
| 2011 | 9th |
| 2012 | 7th |
| 2013 | 23rd |
| 2014 | 24th |
| 2015 | 27th |
| 2016 – 2018 | 24th, 23rd, 22nd |
| 2019 – 2022 | 19th, 21st, 29th, 31st |
| 2023 – 2024 | 31st, 29th |
This table highlights changes in Missouri’s economy. The state’s growth has many drivers. For example, the UM System helped create over $5.4 billion in economic value. It supports more than 61,000 jobs across Missouri.
Employment and Unemployment Rates
Missouri’s job scene is improving, although it’s complex. By November 2024, unemployment fell to 3.7%. This drop shows the state is on the right track. Places like the University of Missouri-Columbia (MU) boost the economy. MU alone added over $3.9 billion in value and nearly 47,000 jobs.
Yet, there are hurdles. Missouri and the Midwest saw slow wage growth after the 2008 recession and the recent pandemic. Lower union membership has also led to small wage increases and more inequality. There’s a clear need to improve job numbers in Missouri and tackle its unemployment issues.
Looking at the big picture, Missouri’s economy stands out for its GDP growth, job market trends, and significant university contributions. These factors blend together to strengthen Missouri’s economic scene. They point towards a future filled with growth and success.
Overview of Minnesota’s Economy
Minnesota’s economy is both stable and growing. We’ll look at key factors like the state’s GDP and job rates. These factors show how healthy Minnesota’s economy is.
GDP and GDP Growth
In 2023, Minnesota’s GDP hit around $498 billion, with a growth of 1.6%. The state’s economy has been growing slowly but surely. From 2012 to 2022, it grew by 49.67%, making it 25th in the US.
Also, Minnesota has a good economic outlook. It was ranked 44th in the US for 2024. This is a big improvement over rankings from 2015 to 2023.
Employment and Unemployment Rates
Minnesota’s job market looks good. By November 2024, the unemployment rate was just 3.5%. This is lower than the US average, showing a strong job market. From 2012 to 2022, jobs grew by 7.51%, placing Minnesota 29th in the US.
Long-term job trends in Minnesota are positive. In 2024, it ranked 25th for its state minimum wage. This is after being in 1st place from 2009 to 2017. Low unemployment rates in Minnesota point to a good job scene for both workers and companies.
Minnesota’s government employment policies seem consistent. In 2024, it ranked 28th for public employees per 10,000 people. This shows stable trends in government job policies.
Income Levels and Poverty Rates in Both States
Missouri and Minnesota differ in how their residents make and manage money. We look at the median income and poverty rates for insights. These measures show the unique economic situations of each state.
Median Income Comparison
In 2023, the median income in Missouri was about $72,108. Minnesota, on the other hand, had a higher median income of around $86,371. This shows a clear difference in how much people earn in the two states.
Knowing these incomes helps us understand the financial health of the states. It shows how people there live and support their communities.
Poverty Rate Analysis
The poverty rates tell us even more about the two states. Missouri’s poverty rate was 10.6% in 2023, while Minnesota’s was 8.4%. This info highlights the economic challenges they face.
Looking at these poverty rates, we see how each state is doing in helping their people live better lives. It shows the struggle for a higher standard of living.
The differences in income and poverty rates between Missouri and Minnesota are striking. They shed light on how money affects lives and communities in both states. Comparing these factors helps us see the real economic picture.
Cost of Living Comparison
The cost of living covers things like housing, utilities, transport, food, and medical care. To compare it in Missouri and Minnesota, we need to look at each state’s economy. These factors affect how much money people need to live well.
Housing and Rent Prices
Housing is a big part of living costs. Homes in Missouri are cheaper than in Minnesota. The NerdWallet cost of living calculator shows Missouri’s home prices are very competitive. But, homes in Minnesota cost more.
Rent in Missouri is also less expensive. A two-bedroom apartment costs less in Missouri than in Minnesota. This difference greatly affects monthly budgets, especially for renters.
Other Living Costs
Other expenses also differ between these states. Missouri is usually cheaper for transport, food, and utilities. Minnesota is a bit more expensive. But, it offers better public services and perks that may be worth the cost for some.
Here’s a simple table showing some key cost differences:
| Category | Missouri | Minnesota | U.S. Average |
|---|---|---|---|
| Rent (2-Bedroom) | $991 | $1,154 | $1,154 |
| Single-Family Home | $140,818 | $273,992 | $273,992 |
| Utilities (Monthly) | $370.16 | $370.16 | $370.16 |
| Food (Monthly) | $609.75 | $609.75 | $609.75 |
Knowing the cost differences helps people decide about moving or budgeting. Missouri has lower home and rent prices, making it good for those watching their spending. Minnesota has higher costs but also better public benefits.
Quality of Life Indicators
Looking at life in Missouri and Minnesota, Minnesota comes out on top in many ways. We explore education, healthcare, crime, and safety to show how each state does. It’s a detailed look at the support for people living there.
Education and Healthcare
Minnesota shines in the education department, with top-notch K-12 schools. It’s one of the best for public education in the US. Missouri does okay but doesn’t reach Minnesota’s level. This shows Minnesota’s strong focus on education.
Healthcare in Minnesota is also better, with folks living longer, averaging 80.9 years. This high life expectancy is due to great healthcare and living above poverty. Minnesota works hard to make sure its people have a good life.
Crime Rates and Safety
Safety matters, and Minnesota is doing well with low crime rates. It’s much safer than Missouri. This fact points to Minnesota being a better place to live in terms of safety.
Clean air and enough food add to Minnesota’s great living conditions. All this makes Minnesota a top choice for those wanting a secure and healthy lifestyle.
| Quality of Life Metric | Minnesota | Missouri |
|---|---|---|
| Life Expectancy | 80.9 years | 79.1 years |
| Poverty Level | 91% above | 86% above |
| Education Performance | High | Moderate |
| Crime Rate | Low | Higher |
| Well-being Index Score | 63.3 | 60.8 |
Economic Opportunities and Business Environment
Missouri and Minnesota each offer unique advantages for businesses. Looking into their economies, we can see the strengths and possible challenges. This gives insights into what each state has best to offer.
Business Climate and Investment
Missouri stands out for its business-friendly environment. It ranks 16th in technology and 8th for low business costs. This shows Missouri is a great place for business investments. However, its workforce ranking at 47th could affect growth.
Meanwhile, Minnesota boasts a strong economy, ranking 6th overall. It has excellent infrastructure and innovation, attracting many investors. The state’s high business cost is balanced by its skilled workforce, making it an attractive location for business.
| State | Overall Rank | Infrastructure Rank | Workforce Rank | Economy Rank | Business Friendliness Rank | Cost of Living Rank |
|---|---|---|---|---|---|---|
| Missouri | 18 | 16 | 47 | 14 | 14 | 8 |
| Minnesota | 6 | 5 | 19 | 24 | 22 | 19 |
Job Market and Workforce Quality
Missouri’s job market faces challenges due to its low workforce ranking. Nevertheless, its strong focus on education and affordable living helps to attract talent and business.
In contrast, Minnesota’s job market excels with a high workforce quality. Its better living costs and excellent education system attract top talent. This state is well-suited for businesses aiming for growth and a skilled workforce.
Missouri and Minnesota present different business opportunities based on their climates and investments. Missouri offers a cost-effective environment, whereas Minnesota is known for its strong infrastructure and workforce. Deciding which state to invest in depends on what a business values most for success.
Which State Has a Better Economics: Missouri vs Minnesota
When looking at economic evaluation Missouri Minnesota, some key points stand out. A recent survey showed Minnesota with 62.81% of votes for a better economy. Missouri had 37.19%. Both states have AAA bond ratings. But, Missouri’s ratings are from all three major agencies, while Minnesota’s are from two.
Missouri’s minimum wage is higher at $12.00 per hour. Minnesota’s is lower, at $10.33 for big companies and $8.42 for smaller ones. This shows different approaches to wage policies and cost of living. Also, Missouri has a lower unemployment rate at 3.0%, versus Minnesota’s 3.4%.
Yet, Minnesota has a higher median household income of $75,000. Missouri’s is $60,000. This places Minnesota higher in the state economic ranking.
Minnesota’s policies offer better worker protections. It has comprehensive paid family leave and mandatory paid sick leave. Its Oxfam worker rights score is 20 out of 50. Missouri’s score is 39 out of 50, showing room for improvement.
| Metric | Missouri | Minnesota |
|---|---|---|
| Minimum Wage | $12.00 | $10.33 (large), $8.42 (small) |
| Unemployment Rate | 3.0% | 3.4% |
| Median Household Income | $60,000 | $75,000 |
| Labor Force Participation Rate | 62.5% | 68% |
| Population | 6.1 million | 5.7 million |
| GDP | $357 billion | $430 billion |
| Poverty Rate | 12.2% | 9.0% |
In conclusion, Missouri shows strengths like lower unemployment and higher minimum wages. However, Minnesota excels in household income, labor participation, and worker benefits. These factors boost its state economic ranking and its image for a better economy. So, choosing depends on what’s most important to you.
Conclusion
As we sum up the debate between Missouri and Minnesota’s economies, it’s clear both have their strengths. Missouri shows growth and a welcoming tax scene. It ranks 3rd for corporate tax and 9th for property tax. Meanwhile, Minnesota shines with strong employment and higher incomes, despite higher taxes.
Cost of living is different in each state, affecting people’s choices. Missouri is cheaper for housing, while Minnesota offers higher pay and better poverty rates. For instance, working women and single mothers in Minnesota see significant poverty reduction with equal pay initiatives.
In terms of quality of life like education and healthcare, Minnesota is ahead. But, Missouri attracts businesses with its tax policies. This comparison shows Missouri’s affordability and tax advantages versus Minnesota’s focus on quality workforce and living standards.
In conclusion, choosing between Missouri and Minnesota depends on what’s more important to you. Whether it’s a lower cost of living or better social services, both states have unique benefits. Our analysis highlights the need to weigh personal priorities in deciding.
FAQ
What are the key components of Missouri’s economy?
Missouri’s economy had a GDP of 8 billion in 2023, growing by 2.6%. It includes manufacturing, agriculture, and services. These sectors play a big part in the state’s economic health.
How does Missouri’s unemployment rate compare to Minnesota’s?
As of November 2024, Missouri had an unemployment rate of 3.7%. This is slightly more than Minnesota’s rate of 3.5%.
What are the significant differences in median income between Missouri and Minnesota?
In 2023, Missouri’s median income was ,108. Minnesota’s was higher, at ,371. This shows a big difference in income levels between the two states.
How do poverty rates in Missouri and Minnesota compare?
The poverty rate in Missouri was 10.6% in 2023. Meanwhile, Minnesota’s rate was lower at 8.4%. This points to a gap in economic well-being between the states.
What aspects are considered in the cost of living comparison between Missouri and Minnesota?
The cost of living comparison looks at housing, rent, and daily expenses like utilities and food. It shows the economic burden on people in both states.
How do the education systems in Missouri and Minnesota rank?
The education system rankings help gauge the standard of education in both states. For detailed rankings, one should look at authoritative sources.
What is the role of healthcare accessibility and quality in determining the quality of life in Missouri and Minnesota?
Accessible, quality healthcare is vital in assessing the quality of life. It affects people’s well-being and financial security in both states.
How safe are Missouri and Minnesota in terms of crime rates?
Crime rates and safety are key to understanding living conditions. They help people decide where they feel safer living.
What are the business climates like in Missouri and Minnesota?
The business environment in each state is evaluated by looking at investments, ease of business, and workforce quality. This reveals how each state supports business growth.
How does the job market compare between Missouri and Minnesota?
The job markets are compared using employment rates and the quality of the workforce. This offers insight into job opportunities in each state.
