The annual outlook comes from the Federal Reserve Bank of Minneapolis, which predicts unemployment will fall even further and personal income will grow.

“Expect another good year in Minnesota, with more employment, fewer unemployed people, increases in personal income,” said Toby Madden, an economist at the Minneapolis Fed.

The operative term is “moderate,” according to Madden. He noted that Minnesota’s economy grew moderately in 2014 and will continue to grow at about the same rate this year.

The Fed expects the state’s unemployment rate to fall from 3.7 percent in November 2014 to 3.3 percent in the fourth quarter of 2015. It also predicts personal income will increase by 4.6 percent.

Lower gas prices have also put more money into consumers’ pockets – about $70 per month for the typical family, according to the survey.

“For consumers, lower gas prices have freed up funds to spend elsewhere,” said Rob Grunewald, also an economist at the Minneapolis Fed, according to the Star Tribune. “However lower oil prices are not good news for companies involved with oil production and drilling.”

Read more