St. Paul Grapples with Demographic Shifts as Aging Baby Boomers and Diverse Youth Shape Future
- Meeting Overview:
The St. Paul City Council Budget Committee recently convened to examine crucial demographic shifts impacting the city’s economic and social landscape. Central to the discussion were the implications of an aging population coupled with increasing racial and ethnic diversity among younger residents. These changes are expected to influence public budgets, labor markets, and community planning significantly.
A presentation by Dr. Susan Power, Minnesota’s State demographer, set the stage by addressing the demographic growth patterns in Saint Paul and the Twin Cities, using data from the 2020 Census. Over the past decade, Saint Paul experienced a 9% increase in population, mirroring a national trend of urban expansion during the 2010s. Dr. Power highlighted that, while Saint Paul has regained population levels not seen since the 1970s, the growth in Ramsey and Hennepin counties is less robust, with some areas witnessing population declines. This demographic phenomenon is largely driven by an aging population, which affects birth and death rates and migration trends.
The committee’s discussion emphasized the issue of an aging population, notably the baby boomer cohort reaching retirement age. This demographic shift is projected to peak around 2030, creating ripple effects across labor markets and public budgets. With retirements increasing since 2011, labor force growth has slowed, posing challenges for employers in sectors such as healthcare and technology. The resulting labor shortages have compelled businesses to explore new recruitment strategies, including employee retraining and out-of-state talent acquisition. The committee recognized the need to address these workforce challenges as they impact the state’s ability to provide essential services like education and long-term care.
In a parallel trend, St. Paul is experiencing significant racial and ethnic diversification. The meeting noted that since the 1990s, populations of color have grown, with substantial increases among Black, Hispanic, and Asian communities. Notably, 75% of children in St. Paul are now classified as children of color. This demographic shift is expected to influence the city’s cultural and economic fabric as these children age. The committee underscored the need for strategic planning to accommodate these evolving demographics.
The committee also delved into the socio-economic conditions of St. Paul, revealing that 14% of residents live in poverty, with a more realistic figure potentially closer to 28% when accounting for basic living needs. The data highlighted disparities among racial groups, with higher poverty rates noted among Hispanic, Black or African American, and certain Southeast Asian populations. The pandemic exacerbated these challenges, with poverty rates rising before beginning to decline recently. The discussion acknowledged the need for targeted approaches to address these disparities and improve economic outcomes for all residents.
Housing and transportation trends also featured in the meeting. Nearly 50% of St. Paul’s housing units are part of multi-unit buildings, higher than the statewide average. Furthermore, the city has a high rate of rental housing occupancy.
A presentation from the Simple Children’s Collaborative highlighted the importance of investing in youth to promote equity. The discussion noted that about 20% of St. Paul’s population is foreign-born, double the state’s average. This demographic contributes to the city’s diversity, with various racial and ethnic backgrounds represented. The committee emphasized the importance of understanding these diverse perspectives as part of the city’s strategic planning efforts.
Melvin Carter
City Council Officials:
Anika Bowie, Rebecca Noecker, Saura Jost, Mitra Jalali, HwaJeong Kim, Nelsie Yang, Cheniqua Johnson
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Meeting Type:
City Council
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Committee:
Budget Committee
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Meeting Date:
07/16/2025
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Recording Published:
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Duration:
50 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Ramsey County
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Towns:
St. Paul
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