Construction and Job Growth in MN

	Michelle Dreier  Director of Membership & Government Affairs

Construction has been an engine of job growth in Minnesota since 2011. Both the Inflation Reduction Act and Infrastructure Investment and Jobs Act have provisions that increase the need for construction jobs. Inflation Reduction Act, despite its name, is more of a green jobs/clean energy jobs act.

2024 is a bonding year for the Minnesota Legislature. The Minnesota House of Representatives leadership has stated that they will entertain $830 million in bonding; this has been revised downwards from $850 million based on Minnesota’s credit rating. Given that it is an election year, many representatives may look to win bonding for a special project in their district to take back to their constituents.

The level of construction activity is an important indicator of economic conditions, with more construction and building permits indicative of a strong economy. Recent Federal Reserve surveys have indicated that private investment in construction has constricted, most likely due to higher interest rates. The interest rates have caused many developers to postpone or cancel projects. Many contractors are reporting reduced backlogs.

Even so, construction is projected to grow 8.9% by 2026, according to DEED’s Employment Outlook data tool. The Electrical Association is receiving a greater number of inquiries on registered apprenticeship, which is indicative of more members looking toward government work as a way to keep their crews busy.

If you are one of these contractors looking to add government work to your portfolio, give the Electrical Association a call. We can help provide information regarding the additional costs and administration of registered apprenticeship to help you make a decision regarding moving forward with bidding on prevailing wage work.