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8/20/2024 3:00:38 PM
Anthony Schaffhauser
September is Workforce Development Month, celebrating the vital contributions of workforce development programs across the United States – including here in Minnesota. It serves as a reminder of the importance of investing in human capital, recognizing the collaborative efforts of various stakeholders—including employers, job seekers and community organizations—in building a skilled workforce that drives the prosperity of our region. With this in mind, let's look at the change in workforce demographics in our region over the past five years by comparing Census American Community Survey (ACS) data from 2022, which is the most recent available, to 2017. This shows workforce development gains and potential for future gains.
Given the array of workforce development programs and the diverse groups they serve, this blog involves a large table full of numbers (Table 1). Don't be daunted. To start off, note that the overall labor force participation rate (LFPR) for the total labor force decreased 1.1 points while the unemployment rate increased 0.2 points. This reflects the Pandemic Recession as well as increased retirements lowering the LFPR, but also highlight the importance of workforce development.
| Table 1: Northwest Minnesota Employment Characteristics 2022, and Change from 2017 | |||||||
|---|---|---|---|---|---|---|---|
| Age | Labor Force | Labor Force Participation Rate | Unemployment Rate | ||||
| 2022 | Change from 2017 | 2022 | Change from 2017 (% points) | 2022 | Change from 2017 (% points) | ||
| Number | Percent | ||||||
| Total Labor Force | 289,474 | +3,494 | +1.2% | 63.1% | -1.1 | 4.4% | +0.2 |
| 16 to 19 years | 16,518 | +774 | +4.9% | 56.3% | +2.0 | 7.5% | -1.1 |
| 20 to 24 years | 28,767 | -508 | -1.7% | 83.2% | +1.3 | 7.3% | +1.4 |
| 25 to 44 years | 113,053 | +6,610 | +6.2% | 87.3% | -0.3 | 4.4% | +0.1 |
| 45 to 54 years | 53,203 | -7,481 | -12.3% | 85.8% | -0.2 | 3.5% | +0.3 |
| 55 to 64 years | 57,040 | +718 | +1.3% | 68.7% | -0.8 | 3.0% | -0.1 |
| 65 to 74 years | 17,671 | +3,138 | +21.6% | 25.7% | +0.9 | 3.7% | +1.1 |
| 75 years & over | 3,219 | +289 | +9.9% | 6.2% | +0.2 | 3.4% | +1.1 |
| Employment Characteristics by Race & Hispanic Origin | |||||||
| White Alone | 261,369 | -5,864 | -2.2% | 62.8% | -1.6 | 3.8% | +0.2 |
| Black or African American | 3,374 | +818 | +32.0% | 70.7% | +7.5 | 10.7% | +0.3 |
| American Indian | 7,954 | -999 | -11.2% | 58.6% | -0.3 | 16.1% | -2.5 |
| Asian or Other Pac. Islanders | 2,342 | +281 | +13.7% | 64.3% | +0.6 | 3.0% | 0.0 |
| Some Other Race | 3,077 | +1,730 | +128.4% | 71.5% | +0.2 | 6.3% | -1.1 |
| Two or More Races | 11,290 | +7,481 | +196.4% | 68.7% | +4.8 | 8.1% | +2.0 |
| Hispanic or Latino | 9,243 | +1,995 | +27.5% | 76.6% | +1.6 | 10.2% | +5.2 |
| Employment Characteristics by Veteran Status, Age 18 to 64 years | |||||||
| Veterans | 10,599 | -2,434 | -18.7% | 76.4% | +1.1 | 5.8% | +1.6 |
| Employment Characteristics by Disability, Age 20 to 64 years | |||||||
| With Any Disability | 18,712 | +2,966 | +18.8% | 51.8% | +2.0 | 10.8% | +2.3 |
| Employment Characteristics by Educational Attainment, 25 to 64 years | |||||||
| Population, 25 to 64 years | 223,293 | -170 | -0.1% | 81.4% | -0.5 | 3.8% | +0.2 |
| Less than H.S. Diploma | 10,770 | -471 | -4.2% | 65.0% | -0.6 | 5.3% | +0.4 |
| H.S. Diploma or Equivalent | 56,973 | -3,741 | -6.2% | 75.7% | -1.8 | 2.3% | +0.1 |
| Some College or Assoc. Degree | 91,584 | -1,850 | -2.0% | 83.4% | -0.7 | 3.4% | +0.5 |
| Bachelor's Degree or Higher | 63,973 | +5,889 | +10.1% | 87.9% | +0.4 | 1.6% | -0.3 |
| Source: U.S. Census Bureau American Community Survey, 5-Year Estimates, 2018-2022 and 2013-2017 | |||||||
The 16 to 19 and 20 to 24 year olds in the Northwest have the highest unemployment rates of all the age groups. This is true throughout the U.S. due to their lack of work experience and skills, and in part to their lack of maturity. Thus, youth is a key focus of workforce development. However, Northwest youth aged 16 to 19 increased their work experience over the past five years with a 2-point increase in LFPR and 1.1-point decrease in unemployment, which were both the largest for any age group over the past 5 years.
The labor force can grow due to population growth or LFPR increase, and the growth in the age 16 to 19 was from a combination of both. In contrast, the population of youth aged 20 to 24 decreased 3.2%. However, the labor force aged 20 to 24 only decreased 1.7% due to increased labor force participation. Thus, even though the unemployment rate of youth aged 20 to 24 increased the most of any age group, this is not all bad because it occurred with an increase in the number and percentage of 20- to 24-year-olds seeking work. Workforce development professionals can help young people – and anyone – looking for work in Minnesota by assisting people in identifying interests and skills, setting career goals, connecting with training programs and other career exploration and job search services.
Looking at unemployment by racial and ethnic groups, the unemployment rate for American Indian residents declined by a higher percentage than any other group and during a five year time period when overall unemployment in the region increased by 0.2%. This decline in American Indian unemployment rate occurred with only a slight decline in LFPR, meaning the decline in unemployment rate was not due to workers being discouraged and ceasing job search.
All racial and ethnic groups except American Indians haves higher LFPRs than white workers, and all increased LFPRs in the past five years. That, combined with the fast growth in these labor force cohorts, especially compared to the 1.2% growth in the overall labor force, means our increasing labor force diversity is fueling growth. These demographic cohorts are younger than the white population, which has a larger percentage of retired people. The fact that all groups except for Asian or Other Pacific Islanders have a higher unemployment rate than White Alone indicates the potential for workforce development efforts among diverse communities.
Veterans and workers with a disability (which also includes veterans with a disability) have higher unemployment rates and greater increases in unemployment over this time. However, LFPR also increased by 1.1 and 2 points, respectively. This, along with the labor force growth of workers with a disability, is also an opportunity for workforce development efforts.
In terms of educational attainment, the statistics clearly show that education is a key part of our workforce development structure. Unemployment rates are lower for those with a high school diploma or a bachelor's degree or higher. The LFPR is higher for those with some college or an associate degree, many of whom may continue their education past age 25.
With the progress and opportunity demonstrated by the labor force demographics, I would like to extend my gratitude to all who contribute to developing our region's workforce. I greatly appreciate the dedicated professionals in our workforce development system who serve our region's workers and employers. There are two Workforce Development Boards in this region of Minnesota, Northwest Private Industry Council (PIC) and Rural Minnesota Concentrated Employment Program, Inc. (RMCEP). As part of the statewide CareerForce system, staff from these workforce development organizations, along with staff from the Minnesota Department of Employment and Economic Development and community partners serve hundreds of job seekers and employers across the region every year.
I also recognize the efforts of all who help youth get work experience, including parents, teachers, mentors and supervisors. The employers that dedicate resources to workforce development when the costs are easily counted and the benefits while huge are harder to measure get my thanks as well. Workers who continually gain skills and adapt to change should also be celebrated this month. The combined efforts that equip individuals with the skills necessary for fulfilling careers benefit everyone in our region.
Contact Anthony Schaffhauser at Anthony.schaffhauser@state.mn.us.
