According to the Minnesota Department of Employment and Economic Development (DEED), Minnesota’s seasonally-adjusted unemployment rate dropped to 4.5% in January, down from 4.7% in December. The number of unemployed fell by 7,652 and the number of employed fell by 14,851 which means on the whole, Minnesota’s labor force shrank by 22,503 on a seasonally adjusted basis. There are two important things to consider:
- When the number of employed and unemployed are both falling at the same time, it can be due to an increase in the number of discouraged workers. That means there are positions open and hiring, but workers are either not finding those job postings or there is a mismatch between the job requirements and workers’ skills.
- The unemployment rate is a measure of the percentage of people who are looking for a job but have not secured one. The rate does not include people such as:
- Stay-at-home parents
- Students and retirees
- People unable to work due to disability, illness, or family leave
- Discouraged workers, such as people who would like a job but have given up looking
How do the numbers break down?
Minnesotans who identify as Black, Indigenous, and People of Color (BIPOC) bear the burden of labor force changes in the past year. According to DEED, the unemployment rates breakdown as follows:
- The unemployment rate for Black Minnesotans a year ago was 4.9%, and today it is 9.5%
- The unemployment rate for Latinx Minnesotans similarly has jumped from 4.9% to 7.3%
- For White Minnesotans the difference is from 3% a year ago to 5.8% today
Even though these numbers are a cause for concern C2C’s work remains unchanged. We continue to work with the high school network to promote graduation and prepare students for their next steps after high school.
Actions you can take
If you are hiring, review your job postings to see if the posting can be revised. Are all of the requirements or qualifications essential? By streamlining your job posts you will likely attract a wider pool of applicants.