The presence of such industry powerhouses as Polaris, Arctic Cat and New Flyer make Northwest Minnesota a hub of transportation equipment manufacturing.
From wheat and potatoes to soybeans and sugar beets, the region is a major producer and processor of food staples and specialty agricultural products.
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7/28/2022 9:00:00 AM
Anthony Schaffhauser
As with Minnesota statewide, employers in Northwest posted the highest number of job vacancies in the fourth quarter of 2021 since the survey began in 2001. While one can expect that job openings will gradually grow along with population over 20 years, the path to the current job market is the opposite of "gradual." Figure 1 displays the quick spike in job vacancies, towering over pre-pandemic levels.
Combined with the record low unemployment rate, Northwest Minnesota's labor market is now the tightest in recorded history with more than two job vacancies for every unemployed person. This situation is not unique to Northwest. Notably, the region's unemployed jobseekers per vacancy ratio is the same as statewide at 0.4. However, the job vacancy rate (vacancies divided by filled jobs) is higher in the Northwest at 9% versus 8.2% statewide, suggesting a bit more pressure to fill open jobs.
One way to get more work done is to post and fill full-time positions rather than part-time. In Northwest, the share of part-time vacancies dropped from 39% in fourth quarter 2020 to 34% in fourth quarter 2021. Statewide, part-time dropped from 32% to 30% in this timeframe. The Northwest consistently has a slightly higher share of part-time vacancies, but has followed the statewide trend with this reduction. Looking back to fourth quarter 2016, statewide part-time vacancies were 43% and Northwest were 45% part-time.
Both the Northwest and statewide display a similar pattern of pandemic recovery shown by the industries with above average vacancy rates (see Table 1). Retail Trade and Accommodation & Food Services require staffing to serve the returning shoppers, travelers, and diners. Other Services include the salons and drycleaners to help us look our best as we venture out, as well as automotive repair and maintenance for the transportation to do so. Health Care & Social Assistance includes clinic visits and other non-urgent care that had been postponed. The standout in Northwest is Finance & Insurance, which had below average vacancies statewide.
| Table 1. Job Vacancies by Industry, Qtr. 4 2021 | |||
|---|---|---|---|
| Northwest MN | MN | ||
| Industry | Number of Job Vacancies | Job Vacancy Rate | Job Vacancy Rate |
| Total, All Industries | 18,861 | 9.0% | 8.2% |
| Agriculture, Forestry, Fishing & Hunting | 243 | 4.2% | 6.0% |
| Utilities | 17 | 1.4% | 1.4% |
| Construction | 221 | 1.8% | 4.9% |
| Manufacturing | 1,594 | 5.6% | 5.4% |
| Wholesale Trade | 219 | 2.0% | 5.5% |
| Retail Trade | 5,236 | 19.3% | 13.9% |
| Transportation & Warehousing | 365 | 5.6% | 4.4% |
| Information | 76 | 3.1% | 3.7% |
| Finance & Insurance | 693 | 11.8% | 4.9% |
| Real Estate & Rental & Leasing | 101 | 6.7% | 8.3% |
| Professional & Technical Services | 135 | 3.0% | 5.8% |
| Management of Companies | 69 | 10.6% | 3.0% |
| Educational Services | 663 | 3.0% | 3.4% |
| Health Care & Social Assistance | 4,684 | 12.5% | 10.8% |
| Arts, Entertainment, & Recreation | 208 | 8.7% | 6.7% |
| Accommodation & Food Services | 2,941 | 17.9% | 19.1% |
| Other Services | 711 | 12.9% | 20.7% |
| Public Administration | 606 | 3.8% | 2.3% |
| Source: DEED Fourth Quarter 2021 Job Vacancy Survey | |||
The vacancies by occupation shed light on this difference. Personal financial advisors and insurance sales agents had a much higher vacancy rate in the Northwest as retirees seek services for retirement finance, including health insurance. This is consistent with the unprecedented tight labor market in the Northwest with its larger share of older workers. It also points to a salient feature of the Northwest's pandemic recovery: great opportunities for labor force entrants, including youth, relocators to the region, and those that wish to return to work.
Contact Anthony Schaffhauser at 320-441-6594.
