With the spread of COVID-19, and subsequent pandemic health and safety measures, the Seven-County Twin Cities Metro Area has witnessed an unprecedented spike in Unemployment Insurance (UI) applicants. Between March 16th and August 12th, there were 526,222 UI applicants in the Metro, accounting for three-fifths of the state's total UI applicants during that time.
Workers of different races work in very different industries, leading to different employment outcomes. Using the Longitudinal Employer-Household Dynamics (LEHD) Quarterly Workforce Indicators dataset, the types of industries workers are employed in can be disaggregated by race and ethnicity. Where workers are employed – and even more so the jobs they do in those industries – helps explain wage differences among workers of different races.
Disparities in workforce outcomes are exacerbated by economic stresses such as recessions. Monthly unemployment claims from DEED's Unemployment Insurance (UI) Statistics lay bare how the current coronavirus crisis is widening the gap in employment between white workers and Black, Indigenous and People of Color (BIPOC) workers in Northeast Minnesota.
Let's go back before COVID-19 impacted our economy and acknowledge the persistent employment disparities that exist for Black, Indigenous and People of Color (BIPOC) communities in the Northwest region. Following a decade of employment growth after the last recession, unemployment rates were still about three times higher for Blacks and five times greater for American Indians than for whites in the region, echoing statewide trends. And now, as the COVID-19 pandemic has altered the regional economy, early indicators suggest that the BIPOC community is at risk of even more serious economic impact.
Occupational demand data is an important workforce development tool in Southeast Minnesota and the rest of Minnesota. This data can be used by job seekers to help narrow their job search and plan for their first career or help them move into a new one. When viewed in light of educational attainment data by race, this occupational demand data can also reveal the potential for widespread economic disparities by racial group, based on educational attainment.
After seeing a spike of Unemployment Insurance (UI) claims in April and May, data from DEED's UI claims statistics program shows that people who lost work in Southwest Minnesota are returning to work. After reaching a peak of 20,863 continuing claims for UI benefits in April, the number of continuing claims dropped to 13,345 in July, meaning about 7,500 have likely returned to their jobs.
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