According to DEED’s Occupational Employment Statistics program the median hourly wage for all occupations in Northeast Minnesota is $16.61, meaning half of the workers employed in the region make less and the other half make more. Median wages vary greatly by occupation, ranging from a low of $8.88 per hour for Restaurant Hosts and Hostesses to more than $100 per hour for Physicians and Surgeons.

Interestingly, by the number of jobs, you will find sizable employment in occupations that have lower median hourly wages than the median for all occupations. For example, with 5,140 people employed in the region, Retail Salespersons are the largest occupation, and their median hourly wage is $10.09.

Of the top 10 occupations by employment in the region, only Registered Nurses have a median hourly wage greater than the median wage for all occupations, while the other nine jobs that employ the largest amount of people have lower median wages. Employment estimates of the top 10 occupations represent 24.1 percent of total employment in the region, indicating their common presence in the makeup of the regional economy (Table 1.)

DEED’s Job Vacancy Survey can be used to better understand the current hiring demand in the regional economy. The most recent results show the highest number of job vacancies recorded in the region since the survey’s inception in 2001. While this is good news, many of the job openings in the region share the characteristic of having lower median hourly wages.

Employers in the region reported 8,055 job vacancies in the second quarter of 2016, but 40 percent of those openings were found in the top 10 occupations, and nine of those had median wage offers that fell below the OES median wage for all occupations. There is significant demand for Registered Nurses in the region, with more than 250 job vacancies reported in the second quarter of 2016, and a median wage offer of $30.41. But this is the only occupation in the top 10 occupations based on the number of job vacancies that has a median wage offer greater than the OES median wage of all occupations in the region.

Employers reported 1,139 job vacancies for Construction Laborers, but with a median wage offer of $12.43. Heavy and Tractor Trailer Truck Drivers had 535 job vacancies with a median wage offer of $15.95. Other occupations with a considerable number of vacancies include: Personal Care Aides, Nursing Assistants, Maids and Housekeeping Cleaners, Cooks, Waiters and Waitresses, Cashiers, and Combined Food Preparation and Serving Workers. All of these occupations had median wage offers between $8.55 and $12.87, considerably less than the median wage for all occupations in the region (Table 2).

Looking at future demand, DEED’s Employment Outlook data tool shows 10-year projections of employment growth or decline by occupation in Northeast Minnesota. With occupation projections, the data tool offers an estimate of how many hires will be due to the growth in that particular occupation and how many hires will be needed to replace existing workers in the occupation that will retire or leave the occupation. Combining those numbers reflects the total number of hires for an occupation during the ten-year period. Just over half (52.1%) of the future hiring is projected to be in occupations that have lower median wages than the total of all occupations.

Again, Registered Nurse is the only occupation in the top 10 for projected hiring needs that has a median wage that is greater than the median wage of all occupations. RNs are expected to experience growth of 219 new jobs in the region, in addition to nearly 900 replacement hires for Registered Nurses that are currently working but would leave the occupation. Other health care occupations, such as Personal Care Aides, Home Health Aides, and Nursing Assistants, have considerable hiring needs due to growth and replacement as well, but have low median hourly wages associated with them.

The top three occupations based on total hiring needs are Cashiers, Retail Salespersons, and Waiters and Waitresses. None of these occupations show much hiring due to growth, but they do show major hiring for replacement needs, and the median wage is much lower than the median wage for all occupations in the region (Table 3).

Low-wage occupations have a notable presence in the regional economy, especially in the job opportunities that are currently open and available for those looking for work, as well as those that will have hiring needs going forward. Considering that DEED’s Cost of Living tool shows that workers in a typical family arrangement (a family of three with one full-time worker, one part-time worker and one child) would have to earn $15.00 an hour to meet basic needs in Northeast Minnesota, these facts should offer insight to those interested in seeing a strong and successful economy in the region.

For More Information

Contact Erik White at erik.white@state.mn.us or at 218-302-8413.