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The Number of Jobs the Inflation Reduction Act Could Create in Minnesota

imageForEntry27 LhmAfter narrowly passing through a Democratically controlled Congress along party lines, President Joe Biden signed the Inflation Reduction Act into law on Aug. 16, 2022. The law allocates $500 billion in new spending. While it may marginally reduce inflation over the long term, its largest impact will likely be on the U.S. energy grid, as most of the money in it is slated for clean energy initiatives.

Through a range of federal subsidies, including rebates, loans, and tax credits, the IRA provides incentives to households, businesses, and state and local governments to invest in clean energy while moving away from fossil fuels. With nearly $370 billion in clean energy funding, the act marks the most significant action the U.S. has ever taken toward addressing climate change.

Not only could the IRA result in a 40% to 50% reduction in America’s greenhouse gas emissions, as Democrats in Washington have argued, but it could also be a boon for the job market — particularly in hard-hit sectors, like manufacturing. According to the independent, nonprofit clean energy advocacy group, Rocky Mountain Institute, the IRA could create over 1.3 million new jobs in 2030 alone.

Based on data from the Rocky Mountain Institute, Biden’s Inflation Reduction Act could create as many as 20,588 jobs in Minnesota in 2030 — or one job for every 281 people, the 19th most among the 48 contiguous states.

As of 2022, 82,580 Minnesota residents were unemployed, according to the Bureau of Labor Statistics. Based on these most recent annual unemployment figures, the number of potential new jobs the IRA could bring in 2030 would reduce joblessness by 24.9% in the state.

All data on the number of potential new jobs created by the IRA in 2030 is from the Rocky Mountain Institute’s report, The Economic Tides Just Turned for States. Alaska and Hawaii were not included in this analysis.

Rank State Num. of state residents per job created by the IRA in 2030 Potential new jobs created by the IRA in 2030 New jobs in 2030 as pct. of 2022 unemployed pop. (%)
1 Utah 251.3 13,423 33.2
2 Idaho 253.9 7,457 29.5
3 Texas 257.5 116,280 20.4
4 North Dakota 257.7 3,106 35.6
5 Nevada 260.0 12,251 14.6
6 Colorado 260.4 22,742 23.4
7 Washington 261.0 30,273 18.0
8 Florida 261.1 84,592 27.0
9 Arizona 268.4 27,209 19.7
10 South Carolina 271.9 19,187 24.9
11 Oregon 272.1 15,873 17.5
12 Georgia 272.2 40,112 25.2
13 Delaware 273.1 3,692 16.5
14 Montana 275.1 4,011 26.8
15 North Carolina 275.4 38,568 20.5
16 South Dakota 277.1 3,252 33.1
17 Tennessee 277.1 25,348 22.3
18 Virginia 280.2 31,255 24.6
19 Minnesota 281.1 20,588 24.9
20 Nebraska 281.7 7,060 28.4
21 Massachusetts 281.8 25,290 18.0
22 Maryland 282.9 22,117 21.5
23 California 285.7 140,005 17.3
24 New Jersey 287.2 32,689 18.6
25 Oklahoma 287.6 13,914 24.4
26 Alabama 288.9 17,557 29.6
27 Iowa 290.2 11,092 23.6
28 Indiana 290.5 23,568 23.1
29 New Hampshire 290.5 4,784 24.7
30 Rhode Island 291.8 3,792 20.8
31 New York 291.8 69,790 17.0
32 Kentucky 293.2 15,482 19.4
33 Wisconsin 293.9 20,196 22.4
34 Arkansas 295.1 10,271 22.6
35 Kansas 296.1 9,978 24.9
36 New Mexico 296.6 7,179 18.8
37 Missouri 296.8 20,848 27.1
38 Vermont 296.8 2,178 24.1
39 Louisiana 296.9 15,771 20.7
40 Maine 297.6 4,601 23.1
41 Pennsylvania 298.2 43,801 15.5
42 Wyoming 298.3 1,943 18.7
43 Ohio 298.5 39,702 17.2
44 Michigan 299.6 33,761 16.6
45 Connecticut 303.4 11,904 14.8
46 Illinois 307.2 41,694 14.1
47 Mississippi 307.4 9,628 19.6
48 West Virginia 318.9 5,587 18.2
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