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.
Want the freshest data delivered by email? Subscribe to our regional newsletters.
10/27/2023 9:00:00 AM
Amanda O'Connell
In line with broader state trends, Southeast Minnesota is grappling with a challenging labor market characterized by a job seeker-to-vacancy ratio of 0.3-to-1 according to the most recent Job Vacancy Survey results from the second quarter of 2022. This tight labor market has prompted businesses in the region to seek innovative approaches to attract and retain a skilled workforce. By utilizing labor market information, businesses can identify overlooked labor pools within the region to fulfill their hiring needs and provide employment opportunities to those seeking jobs.
| Table 1. Employment Characteristics, 2021 | |||||
|---|---|---|---|---|---|
| - | Southeast Minnesota | Minnesota | |||
| In Labor Force | Labor Force Partic. Rate | Unemp. Rate | Labor Force Partic. Rate | Unemp. Rate | |
| Total Labor Force | 278,472 | 68.1% | 3.5% | 69.2% | 4.0% |
| 16 to 19 years | 15,450 | 55.5% | 9.0% | 52.3% | 10.7% |
| 20 to 24 years | 28,207 | 81.9% | 4.9% | 83.3% | 6.7% |
| 25 to 44 years | 112,195 | 88.5% | 3.1% | 88.8% | 3.6% |
| 45 to 54 years | 52,865 | 88.0% | 3.1% | 87.6% | 3.0% |
| 55 to 64 years | 52,688 | 75.0% | 2.6% | 73.1% | 3.2% |
| 65 to 74 years | 14,564 | 28.5% | 2.7% | 28.0% | 3.2% |
| 75 years & over | 2,464 | 6.4% | 1.4% | 6.6% | 2.9% |
| Employment Characteristics by Race & Hispanic Origin | |||||
| White alone | 246,050 | 67.6% | 3.1% | 68.5% | 3.4% |
| Black or African American | 8,463 | 65.6% | 9.0% | 71.9% | 8.6% |
| American Indian & Alaska Native | 780 | 57.2% | 7.6% | 57.4% | 12.9% |
| Asian or Other Pac. Islanders | 9,328 | 73.1% | 3.5% | 72.7% | 4.1% |
| Some Other Race | 5,342 | 76.2% | 7.9% | 75.8% | 6.2% |
| Two or More Races | 8,446 | 75.2% | 6.4% | 74.1% | 7.3% |
| Hispanic or Latino | 15,142 | 75.9% | 6.9% | 77.0% | 6.6% |
| Employment Characteristics by Veteran Status | |||||
| Veterans, 18 to 64 years | 9,898 | 82.5% | 3.0% | 80.6% | 3.9% |
| Employment Characteristics by Disability | |||||
| With Any Disability, 20 to 64 years | 12,898 | 56.8% | 9.1% | 53.6% | 9.9% |
| Employment Characteristics by Educational Attainment | |||||
| Population, 25 to 64 years | 217,704 | 84.7% | 3.0% | 84.4% | 3.4% |
| Less than H.S. Diploma | 11,346 | 70.9% | 4.7% | 66.6% | 4.6% |
| H.S. Diploma or Equivalent | 50,887 | 79.0% | 2.0% | 77.3% | 2.5% |
| Some College or Assoc. Degree | 76,177 | 86.3% | 2.5% | 85.1% | 3.6% |
| Bachelor's Degree or Higher | 79,316 | 89.6% | 1.7% | 90.3% | 2.1% |
| Source: 2017-2021 American Community Survey, 5-Year Estimates | |||||
Overlooked labor pools are comprised of specific groups of individuals who, despite their potential to make valuable contributions to the workforce, are not fully engaged. These pools typically encompass people who are not actively participating in the workforce but possess the capability to work. Identifying and utilizing overlooked labor pools can offer employers access to a broader and more diverse talent pool to fill open positions.
In 2021, Southeast Minnesota had an overall labor force participation rate of 68.1% and an unemployment rate of 3.5%. These figures establish a foundational understanding of the regional labor force and offer valuable insights into potential overlooked labor pools, which can be identified through lower labor forst participation rates and higher unemployment rates than the total labor force.
The younger population in Southeast Minnesota has a relatively low labor force participation rate and a relatively high unemployment rate. Individuals aged 16 to 19 had a labor force participation rate of 55.5% and an unemployment rate of 9%, representing a promising labor pool with untapped potential. Given their youth, these individuals may have little to no prior work experience, making them ideal candidates for entry-level positions. Furthermore, their likely enrollment in school makes them well-suited for part-time employment opportunities. Notably, in the second quarter of 2022, approximately 75% of job openings in the region required a high school degree, GED, or less, and 59% required less than one year of prior work experience, further highlighting the accessibility of opportunities for this group.
People who identify as Black or African American, American Indian, Asian & Pacific Islander, Some Other Race, Two or More Races, or Hispanic or Latino may also be overlooked by some employers. While some of these racial/ethnic groups have higher labor force participation rates than white workers in the region, they also experience higher unemployment rates. Businesses can reach these workers and facilitate their employment by implementing inclusive hiring practices, targeted outreach efforts, and workforce development programs tailored to the specific needs of these populations.
People with disabilities between 20 and 64 years of age have a labor force participation rate of 56.8% and an unemployment rate of 9.1% . Organizations can implement accommodations for these individuals and adopt diversity, equity, and inclusion practices and policies to attract and retain individuals with a disability.
Individuals with less than a high school diploma have a labor force participation rate higher than the overall labor force, but face a higher unemployment rate of 4.7%. These individuals may benefit from additional skill development and education, such as improving reading and math abilities or obtaining a high school diploma or GED. Adult Basic Education programs can play a crucial role in assisting these individuals by enhancing literacy, facilitating the achievement of high school equivalency diplomas, preparing for higher education, and providing essential life skills. Businesses can team up with Adult Basic Education programs to discover potential well-suited candidates, effectively contributing to their efforts in attracting talent to their organization.
In today's increasingly competitive job market, attracting and retaining top talent is critical for businesses. Often overlooked labor pools including younger individuals, Black Indigenous and People of Color workers, people with disabilities, and those with limited educational backgrounds hold great potential to contribute to the workforce in Southeast Minnesota. By engaging with these labor pools, individuals gain employment opportunities, while businesses have the chance to access new and diverse workers to meet their needs.
Contact Amanda O'Connell, Labor Market Analyst, at amanda.oconnell@state.mn.us.
