The Hmong in Minnesota 2000-21: Progress and Opportunities

Bruce P. Corrie, PhD

The experience of the Hmong people living in Minnesota illustrates the power of new immigrants in both transforming their own destinies but also building the communities in their new home. Data from the Census across more than two decades document the dramatic progress experienced by the Hmong in Minnesota. Comparative data is from Census 2000 and the American Community Survey 2021. In addition there is data presented from an economic simulation of the economic impact of Hmong workers in the various sectors of the Minnesotan economy using the ALANA Brain Trust IMPLAN economic model for Minnesota. There is the absence of data on Hmong firms and so estimates are made projecting the data from the 2012 Economic Census where Hmong firms are included in the “Other Asian” category. Tax estimates use the Minnesota Tax Incidence studies to estimate an overall contribution of the Hmong community on state and local taxes. Most of the estimates in this presentation comes from simple multiplication of data points from Census 2000 and ACS 2021.

The author Kao Kalia Yang, captures the spirit of the Hmong experience in the quote above from her book, The Song Poet. It is the experience of many a refugee or immigrant, on their journey from the old and familiar to the new.

The population of the Hmong in Minnesota in 2000 was 43, 156 according to the 2000 Census. The American Community Survey of 2021 estimates the new number to be 103, 639 people. Income per person for the Hmong was $ 7210 in 2000 and this increased to $24003 in 2021. This growth in income is reflected in the dramatic growth in total income from $311 million in 2000 to $2.3 billion in 2021. This income or buying power fuels growth in many sectors of the Minnesotan economy from cars to groceries.

The Minnesota Tax Incidence study over the years estimates that a typical Minnesotan household pays around 11-12 percent of their income on state and local taxes. Based on the tax incidence studies we can estimate that the growth in tax payments by the Hmong community in Minnesota grew from an annual $34 million in 2000 to around $286 million in 2021.

Based on homeownership rates and the median value of these homes as reported in the Census, the value of residential real estate rose from $291 million in 2000 to over $4 billion in 2021. If we consider the mortgage payments that go with these home values, we can see a significant impact on the financial and property markets in Minnesota.

Hmong renters also fuel the rental market and provide income to Minnesota property owners. Monthly rental payments by Hmong renters grew from $1.6 million in 2000 to $11.6 million in 2021. What these numbers also indicate is a revenue stream that can be effectively tapped to grow more affordable and culturally intelligent housing options in Minnesota.

Another significant area of progress is in education where we see the growth in the Hmong population with a high school education or higher growing from 45 percent to 84 percent. The visible growth of Hmong professionals in the community is also reflected in the statistics where the number of Hmong people with a Bachelor’s degree or higher has grown from 8.5 percent in 2000 to 25 percent in 2021.

Our recent research on workforce trends in the ALANA communities provides a glimpse into the powerful role of Hmong workers in the Minnesotan economy. The number of workers increased from over 10, 000 in 2000 to over 50,000 in 2021. Given the labor shortage experienced in Minnesota, these workers are playing an important role in various sectors of the economy.

The major sectors were Hmong workers are found ate in Manufacturing, education, healthcare, social services, professional services and retail. Between 2000 and 2021 there is also a transition going on in the workforce with a decline in workers in manufacturing and an increase in education, health and social services.

To estimate the economic impact of Hmong workers on the Minnesotan economy we use a popular software package IMPLAN to estimate the workforce impact on productions, jobs and taxes. The ALANA Brain Trust IMPLAN Economic Model for Minnesota estimates that Hmong workers help generate $20 billion in goods and services in Minnesota and support over 90,000 jobs and an estimated $2.2 billion in taxes as the federal, state and local levels – a powerful engine of economic growth in Minnesota

It is unfortunate we do not have an reliable estimate of Hmong businesses in Minnesota. The best information to date has been the 2012 Survey of Business Owners that provides an estimate of “Other Asian” businesses. I assume most of these “Other Asian” businesses are Hmong as the other major Asian communities have separate estimates from that survey. So taking the overall growth rate of Asian firms in Minnesota from 2007 to 2012 and projecting that growth rate to 2021, I derive a conservative estimate of the number of Hmong businesses in Minnesota of around 9000. One can see the power of these businesses when we visit the Hmong cultural malls in Saint Paul and the emergence of star entrepreneurs such as Chef Yia Vang, a James Beard finalist or Kou Vang, a developer who offers culturally infused real estate development models for Minnesota.

Another sign of growth in the Hmong community is the decline in family poverty rates from 31 percent in 2000 to 14 percent in the latest 2021 American Community Survey.

A historic development in the political landscape of Minnesota was the successful legal petition filed by an alliance of ALANA (African Latino Asian and Native American) leaders who offered a plan to be considered by the judicial panel drawing up the new legislative districts. In the Final Order, the panel acknowledged the work of the ALANA communities and the “Corrie plaintiffs.” One of the Corrie plaintiffs was Councilmember Xiongpao Lee. Currently the largest and most diverse ALANA legislative presence in Minnesota history owes to the work of the many ALANA community leaders who actively participated in the process, including people like Xiongpao Lee. Currently the largest presence of Hmong legislators in the nation is in Minnesota with 9 Hmong leaders elected to the Minnesota House and Senate. What a powerful message of political participation.

A story that offers an insight into this strong civic engagement of the community – About two decades ago the Minnesota legislature created a space for the Southeast Asian community at the Minnesota Department of Natural Resources where four Southeast Asian Conservation Officers were recruited to be a bridge between their communities and others participating in hunting and fishing in Minnesota. Today, Senator Foung Hawj, has been appointed Chair of the legislative committee that oversees the DNR. A powerful story of giving back to Minnesota.

The Hmong community have actively engaged in various aspects of civic society including the electoral process. Many candidates competed for elected office and that in turn helped mobilize the vote that in turn resulted in the electoral success of both Hmong as well as other candidates. Data from the Secretary of State website reveals the strong electoral presence of Hmong voters in the number of votes received by Hmong candidates – for example in House District 67 A.

The Hmong community is also active in various sectors of life in Minnesota, from the 4 new Chairs of important legislative committees in the 2023 legislature to the Federal Reserve Bank of Minneapolis and the Olympics. A partial list of some of these leaders is provided in the slide below.

Finally, as we look at the data in historical context, from an economic development focus, there are a number of opportunities identified in the slide above. This is where policies, strategies and investments can occur to help propel this growth trend into the future.