Job growth fuels government revenue
It shouldn’t come as a surprise that the number of jobs in Minnesota jumped sharply in January. There was a hint that such a jump would was coming when the state the Department of Minnesota Management and Budget issued its latest economic forecast, showing the state’s deficit for the coming biennium should be about $627 million, instead of $1.1 billion.
When more people are working in Minnesota, the state collects more in income taxes and in sales taxes. And in January, 12,100 more people were working, according to the Minnesota Department of Employment and Economic Development. Its annual Jobs Revision Report also showed there were 16,700 more jobs than earlier reported in the previous 21 months.
Minnesota should be working to keep this trend going. It’s not that easy for government to create jobs – businesses do that best. But government can wipe out jobs with overregulation and business-punishing tax policies. Minnesota lawmakers should concentrate on business-building actions.