Nursing & Residential Care Facilities employed 8,932 people in Northeast Minnesota in 2022. That was a decline of 668 jobs (-7.0%) from the previous year's employment level of 9,600 and a decrease of 1,536 jobs (-14.7%) from pre-pandemic levels in 2019. Over both periods, the industry lagged the Health Care & Social Assistance sector as well as the average of all industries (see Table 1).

By region, the percent decline in Nursing & Residential Care Facilities employment from pre-pandemic levels was largest in Northeast. The next biggest decline was in the Southwest region (-10.8%), while the statewide employment decline during the same period was -7.6%. Relatedly, the number of Nursing & Residential Care Facilities establishments declined from 286 in 2019 to 254 in 2022, as many facilities closed due to various reasons, with most of the decline in number of employers happening over the past year. Between 2021 and 2022, the number of Nursing & Residential Care establishments fell by 24 in Northeast Minnesota.

However, as Nursing & Residential Care Facilities employment fell, wages for workers in the industry rose. Since 2019, the average annual wage for the industry increased 23.4%, more than six percentage points higher than the average wage growth of the region. Part of the higher-than-average increase can be attributed to emergency funding via the CARES Act that was directed to long-term care facilities in 2020. More recently, the Minnesota Department of Human Services allocated $50 million to address staffing shortages at nursing facilities.

While each sub-industry experienced above average wage growth, the fastest growth was seen by Residential Intellectual & Developmental Disability, Mental Health & Substance Abuse Facilities (+29.7%), perhaps reflecting the high demand for mental health professionals within the sector, and at-large. However, despite above-average wage growth, Nursing & Residential Care Facilities wages remain significantly lower than the Health Care & Social Assistance sector average, as well as the all-industry average.

Much of this disparity has to do with the high concentration of traditionally low-paying occupations in the industry. Home Health & Personal Care Aides, Nursing Assistants, and Food Servers, Nonrestaurant combined to account for about 56% of total employment in Nursing & Residential Care Facilities. The median wages of those three occupations were all at least $4 below the regional median of $22.57 per hour (see Table 2).

Of the top ten most common occupations in the Nursing & Residential Care Facilities industry, only Registered Nurses (RNs) and Licensed Practical & Licensed Vocational Nurses (LPNs) have wages greater than the regional median. Those two occupations accounted for under 10% of industry employment statewide.

Despite the relatively larger Nursing & Residential Care employment declines in the region, Northeast Minnesota maintained the highest concentration of that industry's employment across the 6 planning regions (see Figure 1). Driving this concentration is Residential Intellectual & Developmental Disabilities, Mental Health, & Substance Abuse Facilities, Continuing Care Retirement Communities/Assisted Living, and Other Residential Care Facilities. Other Residential Care Facilities employment is the most concentrated of the Nursing & Residential Care Facilities sub-industries with a location quotient of 2.5, meaning employment is two and a half times more concentrated in the region as compared to the state. Other Residential Facilities includes facilities such as group homes and halfway houses as well as orphanages.

The pandemic laid bare how much communities rely upon the crucial services provided by Nursing & Residential Care Facilities. The COVID-19 pandemic has also increased demand for these important workers. As it is in many care-providing professions, pay is often lower than average, but has been rising faster than average over the past 3 years. Higher wages will aid in attracting the next generation of Nursing Assistants, LPNs, and Personal Care Aides, especially since demand is expected to remain high as our population in Northeast Minnesota continues to age. If you or someone you know is interested in learning more about caring careers, please visit CareerForce's Follow Your Heart to a Caring Career page: https://www.careerforcemn.com/CaringCareer.

For More Information

Contact Carson Gorecki, Labor Market Analyst, at carson.gorecki@state.mn.us.

Caring Careers

June is the kick off for the Follow Your Heart to a Caring Career campaign, including a proclamation from the Governor explaining the benefits of working in Health Care & Social Assistance. DEED's Regional Analysts put together a series of blogs focused on Health Care employment and opportunities in all 6 planning regions:

Central | Northwest | Southeast | Southwest | Twin Cities

As detailed in previous articles, the Health Care & Social Assistance industry has been under stress since the pandemic, but remains a great long-term career opportunity as it is projected to be the largest growing industry over the next decade. The goal of the Caring Careers campaign is to help jobseekers find their fit in health care employment that makes a real difference in the lives of others. Jobseekers that are interested can begin an in-demand career path with great growth potential and no training beyond high school required to start in many positions. Employers even pay for initial training in many cases – and they may also pay for future training to help workers grow their career and earn more money. Many employers also welcome employees who are learning English.