Southeast Minnesota is a health care and agricultural powerhouse. The region is home to the renowned Mayo Clinic and some of the world's most recognized food companies and brands.
Advanced manufacturing is especially strong here, with machinery, chemicals, and electronics among the top products.
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5/17/2022 9:00:00 AM
With a 0.5 to 1 jobseeker-per-vacancy ratio (meaning for every 10 job openings there are only five unemployed jobseekers) and a labor force growth rate that is projected to slow from 2023 to 2033, Southeast Minnesota is without a doubt in a very tight labor market now and will likely remain so for the foreseeable future. Employers all over the region are struggling to find workers to fill their job openings and despite their best efforts to attract talent - including increasing wages, incorporating hiring bonuses, and offering flexible schedules - many are falling short of reaching their hiring goals.
One potential source for workers that may alleviate some of the hiring strain employers are feeling is the foreign-born population. The most recent estimates from the U.S. Census American Community Survey show that there are over 34,000 foreign-born residents in Southeast Minnesota – a number that has increased by over 30% over the last 10 years, which was a faster rate of growth than was seen in the state as a whole (28.3%). The largest foreign-born populations in the region were those born in Asia, followed by Latin America, Africa, and then Europe. Despite the number from Europe decreasing by 3.3% over the last decade, the other three groups saw increases ranging from 12% from Latin America to 131% from Africa (see Table 1).
| Table 1. Place of Birth for the Foreign-Born Population, 2020 | Southeast Minnesota | Change from 2010-2020 | Minnesota | Change from 2010-2020 | |||
|---|---|---|---|---|---|---|---|
| Number | Percent | Number | Percent | Number | Percent | ||
| Total, Foreign-born Population | 34,179 | 6.6% | +8,176 | +31.4% | 470,687 | 8.2% | +28.3% |
| Europe | 3,144 | 9.2% | -108 | -3.3% | 45,867 | 9.7% | +1.9% |
| Europe: - Northern Europe | 628 | 20.0% | -269 | -30.0% | 8,417 | 18.4% | -6.1% |
| Europe: - Western Europe | 600 | 19.1% | -274 | -31.4% | 10,255 | 22.4% | -2.8% |
| Europe: - Southern Europe | 214 | 6.8% | +63 | +41.7% | 2,668 | 5.8% | +31.8% |
| Europe: - Eastern Europe | 1,702 | 54.1% | +372 | +28.0% | 24,452 | 53.3% | +4.4% |
| Asia | 11,108 | 32.5% | +2,701 | +32.1% | 174,828 | 37.1% | +28.5% |
| Asia: - Eastern Asia | 3,069 | 27.6% | +533 | +21.0% | 37,314 | 21.3% | +19.7% |
| Asia: - South Central Asia | 2,073 | 18.7% | +223 | +12.1% | 43,371 | 24.8% | +51.2% |
| Asia: - South Eastern Asia | 5,278 | 47.5% | +1,516 | +40.3% | 84,921 | 48.6% | +19.9% |
| Asia: - Western Asia | 688 | 6.2% | +429 | +165.6% | 8,873 | 5.1% | +74.5% |
| Africa | 8,893 | 26.0% | +5,047 | +131.2% | 125,135 | 26.6% | +78.2% |
| Africa: - Eastern Africa | 6,657 | 74.9% | +4,344 | +187.8% | 82,990 | 66.3% | +91.7% |
| Africa: - Middle Africa | 156 | 1.8% | +149 | +2128.6% | 3,848 | 3.1% | +177.6% |
| Africa: - Northern Africa | 1,173 | 13.2% | +474 | +67.8% | 6,871 | 5.5% | +39.7% |
| Africa: - Southern Africa | 215 | 2.4% | +131 | +156.0% | 1,693 | 1.4% | +80.7% |
| Africa: - Western Africa | 644 | 7.2% | +343 | +114.0% | 26,735 | 21.4% | +56.9% |
| Oceania | 161 | 0.5% | -271 | -62.7% | 1,846 | 0.4% | +15.4% |
| Americas | 10,873 | 31.8% | +807 | +8.0% | 123,011 | 26.1% | +7.8% |
| Americas: - Latin America | 10,197 | 93.8% | +1,067 | +11.7% | 111,190 | 90.4% | +9.6% |
| Latin America: - Central America | 8,362 | 82.0% | +320 | +4.0% | 80,406 | 72.3% | +0.8% |
| Central America: - Mexico | 6,871 | 82.2% | -257 | -3.6% | 59,735 | 74.3% | -9.0% |
| Latin America: - South America | 1,237 | 12.1% | +785 | +173.7% | 23,584 | 21.2% | +36.2% |
| Americas: - Northern America | 676 | 6.2% | -260 | -27.8% | 11,821 | 9.6% | -6.3% |
| Source: U.S. Census Bureau, 2016-2020 American Community Survey | |||||||
Job vacancy data for Southeast Minnesota shows that there are job openings that require every level of education, from less than a high school diploma to advanced degrees such as master's and Doctoral degrees. Southeast Minnesota's foreign-born population has representation at every level of education. Of current vacancies, just over half have no education requirement while an additional 23% require a high school diploma or GED. The highest percentage of the foreign-born population have less than a high school diploma (31.5%) or a high school diploma or GED (19.6%). Compared to the state as a whole, Southeast Minnesota shows higher percentages of foreign-born population with less than a high school diploma, but also a higher percentage with an advanced degree (see Table 2).
| Table 2. Educational Attainment for Foreign-Born Population Aged 25 Years and Over | |||
|---|---|---|---|
| Education Level | Southeast MN | Minnesota | |
| Number | Percent | Percent | |
| Total - 25 Years and Over | 26,684 | 100.0% | 100.0% |
| Less than high school | 8,400 | 31.5% | 24.3% |
| High school graduate | 5,221 | 19.6% | 19.7% |
| Some College (no degree) & Associate's degree | 3,867 | 14.5% | 21.2% |
| Bachelor's degree | 4,027 | 15.1% | 19.2% |
| Advanced degree | 5,169 | 19.4% | 15.6% |
| Source: 2016-2020 American Community Survey 5-Year Estimates | |||
While language barriers during the application process and while on the job may initially be a hindrance to welcoming foreign-born workers, there are examples of companies in the region that have found great success by utilizing employees, current or newly hired, that speak both English and their native language fluently enough to serve as translators. There are many benefits to recruiting and hiring from the foreign-born population, including creating a more diverse workforce and subsequently taking advantage of diverse knowledge and experiences, gaining talented, innovative, and creative workers, increasing work flexibility, and filling skill gaps in the workforce. The foreign-born segment of the population in Southeast Minnesota will continue to be a valuable asset in Southeast Minnesota now and in the future.
Contact Mark Schultz.
