With the release of new statewide and regional labor force statistics, the impact of COVID-19 on the Seven-County Twin Cities Metro Area is starting to come into focus. This month's blog highlights two interesting trends: 1) that the unemployment rate increased significantly, and 2) the size of the labor force decreased over-the-year throughout the Metro Area and Minnesota..
Certain industries have been forced to cease or limit operations by Executive Orders in response to the COVID-19 pandemic, including food and drinking places and personal care services. Those two sectors provided 20,529 jobs in Central Minnesota in 2019, accounting for 7.4% of total jobs in the region.
In Northeast Minnesota, the median wage is $18.57 an hour, or $743 a week for full-time workers. Assuming a UI benefit equal to half the worker's income ($371), the added $600 benefit would provide a weekly income of more than $970. In that case, a worker making the regional median wage would earn $227 more per week on unemployment than at work.
The first impacts of COVID-19 on the regional economy are evident in the release of April's Local Area Unemployment Statistics (LAUS). Unemployment rates have jumped for the nation, state, region and local counties compared to March's readings, especially in Northwest Minnesota. .
From March 16th to May 21st, Southeast Minnesota has seen 55,433 workers apply for Unemployment Insurance (UI) benefits due to the COVID-19 pandemic, equaling 19.2% of the total labor force estimate for the region, which was 288,108 workers in 2019. During this time, certain age groups saw higher numbers of UI claims, with younger workers taking the hardest hit by numbers in the region.
So far, Southwest Minnesota's economy has been the least susceptible to the coronavirus pandemic. The 23-county region has shown the smallest number of Unemployment Insurance (UI) applications, with just over 37,000 claims filed through May 26. Not only the smallest number, that is also the smallest share of the total labor force among the 6 regions in the state.
Save the date!
SEPTEMBER 10, 2020
2020 Connecting Entrepreneurial Communities Conference
includes a session on DEED's Launch Minnesota Program Regional Hub Partners
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