The Federal Reserve Bank of Minneapolis forecasts stronger employment growth in Minnesota in 2013.
The bank's economists expect job growth of 2.2 percent in Minnesota this year. That's higher than the historical average growth rate of 1.4 percent.
The forecast is based on statistical models. But the Fed also polled business leaders about hiring.
Fed economist Rob Grunewald says although employers are slightly less optimistic this year than they were in 2012, they still plan on increasing payrolls.
Retail and manufacturing employers expect the largest increases in employment at their companies.
Minnesota Public Radio reports the Fed expects Minnesota's unemployment rate to drop to 4.7 percent by the end of the year. It's currently 5.7 percent.
Growth in personal income is expected to exceed 5 percent.