ST. PAUL, MN – A new report suggests that race and ethnicity – not other demographic differences – are driving the disparities of the Twin Cities metropolitan region, particularly between white and black Minnesotans (born in and outside the U.S.).

 

The Metropolitan Council analysis shows that when the influence of demographic differences – such as age, immigrant status, and English skills – is accounted for, many of the disparities remain for people of color in the Twin Cities region. According to the analysis, even if black residents in the region had the same demographic profile as white residents, their homeownership rate, employment rate, and average hourly income would still be lower than whites.

 

The study found that demographic factors such as age and immigration can play a small role in partially closing the opportunity gap for Latino, Asian and black residents of the region, but ultimately, even when taking into account all demographic differences, the disparities persist.

 

“This report underscores again the urgent need for action to reduce the racial disparities in our state,” said Governor Dayton. “The inequities afflicting Minnesotans of color in education, income, employment, and housing require additional state investments immediately. I urge all legislators to read this study and commit themselves to addressing these needs.”

 

One of the largest disparities is between black and white homeownership. After adjusting for a number of demographic factors, including household income and the number of workers in the household, the homeownership rate for black households increases from 24.7 percent to 48.1 percent; still well below the 75.7 percent homeownership rate for white households.

 

“These pronounced opportunity gaps in the Twin Cities region and across Minnesota are putting Minnesota’s economic future at risk,” said Lt. Governor Smith. “I know the Met Council shares the commitment the Governor and I have to taking meaningful action to close the economic divides in our communities. We must act now to build a more prosperous Twin Cities region, and state, that reflect and serve all Minnesotans equally.”

 

Currently, people of color account for about a quarter of the region’s population of three million people. By 2040, however, people of color will account for more than 40% of the Twin Cities population, according to Metropolitan Council forecasts.

 

With nearly all the region’s workforce growth coming from residents of color in the next decades, Council officials warn that if economic disparities are not eliminated, the region’s overall economic competitiveness will be negatively impacted.

 

Governor Dayton and Lt. Governor Smith’s supplemental budget proposal includes $100 million for strategic investments to close the opportunity gaps in Minnesota with focus on: homeownership, adult and youth workforce training, business development and educational funding from pre-k through college.  As the head of one of the state’s largest employers, the Governor has also announced efforts to double the number of people of color in the state workforce by 2020 – including the recent hiring of the state’s first ever Chief Inclusion Officer.

 

Researchers with the Met Council released the Metro Stats report this week. They will present a full overview of the report’s findings to the Council at its regular meeting this Wednesday. Links to a summary of the report, and additional report materials, are below: