Despite the pandemic taking the wind out of our economic sails, Central Minnesota had nearly 11,000 job vacancies in the second quarter of 2020, almost the same number of vacancies that employers reported in 2017. The data shows that at the same time many employers were reducing hours and laying off workers, others were still trying to hire. Ironically, many of the occupations that were shedding jobs are largely the same occupations that other employers were looking to fill. However, much of the overlap is due to the high turnover nature of the most impacted occupations rather than differences between employers within the same sector.

While 10,727 job vacancies is a large number, it's still about 2,700 fewer than the region had last year, or a 20% decline. This is a substantial decline, and one that is concentrated among entry-level occupations. The top ten most numerous openings are typically considered entry-level occupations and comprise 28% of all openings in the second quarter of 2020 but 35.5% of all openings in the second quarter of 2019.

The largest numbers of openings in the second quarter of 2020 were for occupations closely associated with Retail Trade and Accommodation and Food Services, such as Cashiers and Retail Salespersons and Food Preparation and Serving Related Occupations, again common occupations for young workers. For the most part, median wage offers have increased from a year ago, but openings in the Food Prep and Serving Related field showed lower wages for openings in Central Minnesota, possibly the result of fewer openings at full service restaurants or from a surplus of workers who were out of work.

Entry-level occupations are incredibly important for new labor force entrants to gain a foundation of skills. The skills that are created and honed early-on allow workers to move up the career ladder and into positions that can better utilize their potential, so this current disruption is cause for concern among our newest workers. The job market turmoil has impacted younger workers disproportionately, with 40% more workers 20-24 years filing for Unemployment Insurance than last year. Time will tell how the experience of working, being laid off, having hours reduced, or changing responsibilities due to the pandemic shapes the perceptions and preferences of our youngest workers.

As the economy changes, openings and layoffs will likely be a good indicator of how Central Minnesotans' daily lives are being impacted as we continue to move through the pandemic into economic recovery.

For More Information

Contact Luke Greiner at 320-308-5378.