By William Smith
Overview of Economic Health
Inver Grove Heights, located in Dakota County just southeast of the Twin Cities, is home to a diverse mix of businesses—from family-owned shops to large enterprises like CHS and Gertens. The city’s affordable land, proximity to major highways, and developing housing sectors continue to attract investment and new employers.
Jobs and Unemployment
Dakota County’s unemployment rate has held near historic lows—about 3.6% in 2025—lower than Minnesota’s state average. The labor force has grown steadily, and projections show continued growth through 2035, especially in prime working-age groups. Still, some employers report difficulty filling certain roles despite vacancies returning to pre-pandemic norms.
Business Landscape & Wages
Inver Grove Heights hosts approximately 1,683 businesses with around 26,000 jobs. Nearly 87% of businesses are small (fewer than 20 employees), although the average wage is about $76,000—roughly 22% above the Dakota County average. Key sectors for employment include healthcare, professional services, retail, and construction. Most businesses are in small-scale retail or local services rather than large industrial operations.
Opportunities and Challenges for Entrepreneurs
The city’s Economic Development Department offers resources such as current commercial district maps, demographic data, and statistics that can help new businesses plan effectively. At the same time, challenges include finding qualified workers for specialized roles and keeping up with rising housing and land costs for both business owners and employees. Affordable housing, in particular, is under pressure.
What Residents Might Expect
- More openings in health care, professional services, and hospitality as demand grows.
- Opportunities for small business owners to serve local needs—especially in retail, food services, and personal care.
- Rising property and rental costs could put pressure on lower-income families.
- Collaborations between city government and state workforce programs to help match job seekers to employers.
Inver Grove Heights appears to be on a solid trajectory: its economic conditions are generally healthy, its business environment is vibrant, and its population is growing. For entrepreneurs, employees, and policymakers alike, there’s reason to see active opportunity—and to plan carefully to make sure that growth benefits the whole community.