In recent times, the State of Minnesota has experienced robust economic times, despite the pandemic's disruption of business operations in the area. As of December 2020, Minnesota experienced increased consumer spending. The State actually recorded a surplus of over $600 million, but this was way lower than the State's projection. Nevertheless, this surplus couldn't have come at a better time; Minnesota residents will undoubtedly put it to good use. As the coronavirus pandemic continues to ravage the country, this surplus will go a long way in helping develop the infrastructure and the overall economy.
Like most other US states, Minnesota experienced numerous job losses due to the coronavirus pandemic. However, this condition started changing in 2021, with Minnesota's overall economy and businesses gradually opening up. Sadly, during the on-going pandemic, Minnesota has lost over 100,000 jobs; nevertheless, prospects for these jobs are expected to improve as 2021 progresses. The most affected sectors in the State were healthcare, hospitality, and the retail industry. Economists predict that almost all of these sectors will experience significant growth during the second fiscal quarters this year.
Since the COVID-19 pandemic is still around, many Minnesota sectors are lagging, and businesses have not fully reopened. This delay is because of factors like social distancing rules; of course, these are still in full effect because of the news regarding a new strain of the virus. Sectors such as entertainment are slowly coming back to life, but the rate they're resuming operations is expected to improve. Happily, the vaccine rollout news has been a significant boost to the State since more people can now pursue regular economic activities. The State's Healthcare sector has faced a difficult time because of the Covid-19 problem. However, as the State reopens, the healthcare industry's growth looks promising. The employment of more healthcare workers will be incredibly beneficial to the sector, making it function better. Further, the local industry's budget allocation increased; this will go a long way in making the industry thrive once again.
The Minnesota area's manufacturing sector has been on a steady climb since the pandemic control measures took effect. Stakeholders in the industry are, however, hopeful about a return to normalcy. Overall, the local manufacturing sector provides over 300,000 jobs for residents, and-as noted- prospects for these jobs were significantly affected in 2020. Production of goods and services also went down immensely, and this involved other sectors in the State. Many manufacturers expect to resume full operations this year, even though others believe this will happen much later in the year. The industry contributes over 12% of the private sector jobs. It is, therefore, imperative that the manufacturing sector should fully resume operations in the area.
The Minnesota government has put measures to ensure business activities in the State will continue to increase. Small businesses in the State now have safe heaven- these are mainly in the Small Business Guarantee Program (SBGP). The modest loans (available to some) will enable the State to spur business activity, boosting the State's general economy. Minnesota's government has also put in place tax laws that ensure low-income households pay lower taxes. This law will enable lower-income earners in the State to have high productivity in the job sector. Of course, like elsewhere, working from home has become the new normal, which holds the same for Minnesota. More companies in the State now allow employees to work from home. This has resulted in greater productivity from employees and enhanced economic performance by businesses.
As the employment numbers begin to rise, Minnesota will undoubtedly continue to experience better economic times. Prices of products are expected to improve since the manufacturing sector will resume operations fully. The retail industry is also significant, with many retail outlets now operating, which will benefit many residents. Tied to the hospitality industry, job creation in the State is likely to increase as the year progresses. The current vaccine rollout will also facilitate the full reopening of the State's economy. Minnesota's government will, however, have to allocate more funds to the healthcare industry to promote the vaccination campaign. Fortunately, as we already noted, Minnesota's State budget experienced a massive surplus in the last financial year. Yes, the State can afford to deploy this money for vaccination distribution throughout the area.