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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2/22/2024 9:00:00 AM
Amanda O'Connell
Southeast Minnesota's labor market remained tight in 2023, maintaining a low annual unemployment rate of 2.6%. With the ongoing retirement of Baby Boomers, there's a growing focus among workforce and economic development partners on innovative strategies to expand the state's workforce. One promising approach is to tap into the potential of the foreign-born population to address labor shortages and drive economic growth in Minnesota.
| Table 1. Foreign Born Population, 2022 | Southeast Minnesota | Change from 2010-2022 | ||
|---|---|---|---|---|
| Number | Percent | Number | Percent | |
| United States | 45,280,680 | 13.7% | +6,605,668 | +17.1% |
| Minnesota | 481,922 | 8.5% | +114,971 | +31.3% |
| Southeast Minnesota | 35,727 | 6.9% | +9,724 | +37.4% |
| Olmsted County | 18,248 | 11.2% | +4,943 | +37.2% |
| Rice County | 5,426 | 8.1% | +1,598 | +41.7% |
| Mower County | 4,459 | 11.1% | +1,801 | +67.8% |
| Steele County | 1,708 | 4.6% | +402 | +30.8% |
| Winona County | 1,531 | 3.1% | -112 | -6.8% |
| Freeborn County | 1,512 | 4.9% | +537 | +55.1% |
| Goodhue County | 1,065 | 2.2% | +72 | +7.3% |
| Dodge County | 740 | 3.5% | +270 | +57.4% |
| Wabasha County | 443 | 2.1% | +91 | +25.9% |
| Fillmore County | 347 | 1.6% | +107 | +44.6% |
| Houston County | 248 | 1.3% | +15 | +6.4% |
| Source: 2018-2022 American Community Survey | ||||
According to Census data, Minnesota is home to about 482,000 foreign- born residents, an addition of nearly 115,000 immigrants since 2010. This represents 1.7% of the overall immigration to the United States between 2010 and 2022. The state's immigration growth rate, at 31.3%, nearly doubles the national average of 17.1% during the same period.
In Southeast Minnesota, the foreign-born population is close to 36,000 people, making up 6.9% of the area's total population. The region has seen a significant increase in its immigrant population, with a 37.4% growth rate since 2011, outpacing both the statewide and national figures.
Olmsted County, the most populous in the region, also hosts the largest number of foreign-born residents, comprising 11.2% of its total population. This makes it the county with the highest proportion of foreign-born individuals relative to its overall population. Close behind is Mower with 11.1%, and Rice County with 8.1% foreign-born populations. On the other end of the spectrum, Houston County has the lowest percentage of foreign-born residents at 1.3%, with Fillmore (1.6%) and Wabasha County (2.1%) slightly ahead.
The pace of immigration growth varies across counties. Since 2011, Mower County has witnessed the most rapid surge in its immigrant population, at 67.8%, with Dodge close behind at 57.4%, Freeborn at 55.1%, and Fillmore County experiencing a 44.6% increase. Interestingly, Winona County has experienced a decline in the foreign-born population, a decline of 112 residents or a decrease of 6.8%.
Immigrants play a significant role in the workforce due to their younger age distribution. In 2022, 61% of the immigrant population fell within the prime working age range of 25 to 54 years old. This contrasts with the total population, where only 36% were in their prime working years. With the retirement of the Baby Boom generation, the foreign-born population can play a crucial role in supplementing our workforce with younger workers.
In Southeast Minnesota, the diverse job market accommodates various levels of educational attainment among the foreign-born population. While this group tends to have lower levels of educational achievement compared to the region, with about 50% having a high school diploma or less, employment is still readily available. According to the Job Vacancy Survey results from 2022, out of 19,304 job openings in the area, 50% had no educational requirements, and another 20% required a high school diploma. This alignment between the educational profiles of foreign-born residents and job requirements underscores the region's capacity to offer suitable employment opportunities to foreign-born residents.
Additionally, the foreign-born residents of Southeast Minnesota stand out for their higher educational accomplishments. Around 20% of these residents hold advanced degrees, exceeding the 12.8% of the regional population. This variation in educational levels showcases the diversity within the foreign-born population, offering a broad range of skills and expertise to the local workforce.
The foreign-born population is vital to Southeast Minnesota's economy and workforce. Even though some immigrants have lower educational attainment levels, plenty of job opportunities match their skills. Plus, many immigrants to the area have higher than average educational attainment, adding valuable knowledge and abilities. As the local workforce ages, these younger, foreign-born workers will help fill the gap by working in a range of occupations and keeping the economy strong in Southeast Minnesota.
Contact Amanda O'Connell, Labor Market Analyst, at amanda.oconnell@state.mn.us.
