Seeing the Shifts
In this month's Local Look blogs from the Minnesota Department of Employment and Economic Development's Labor Market Information office, we look into notable shifts occurring in the labor force and in specific industries. Please contact your regional analyst for more information..
In July 2021, the Metro Area's unemployment rate dropped back down to 3.6%. While this rate is nearly as low as pre-pandemic levels, it does mask continued shifts in the region's labor force due to COVID. The labor force in July 2021, for example, is still down by over 24,300 people (-1.4%) from March 2020..
The Construction industry is booming in Central Minnesota. In fact, in the past five years, Construction employers added more jobs than all other industries combined. The reason behind that impressive statistic is that Construction firms maintained employment in 2020 while nearly every other industry shed jobs due to the pandemic recession.
As Minnesota's population ages, older workers will play an increasingly important role in the workforce. But how has the expected future role of older workers been impacted by the pandemic-related recession? The answer to this question may be particularly important in Northeast Minnesota – a region with a population and workforce older than the state average.
Fitness Centers and Gyms were one of the industries hit hardest by the pandemic, with nearly two-thirds of employment in the state sliced between the first and second quarters of 2020. The cuts were not as deep in Northwest Minnesota, but still nearly half of the jobs at Fitness Centers were lost in the immediate aftermath of the pandemic. The good news is that like elastic bands, employment at Fitness Centers in Northwest Minnesota snapped back quickly.
One thing is pretty certain in today's world – there will always be people who choose to commit crime. In fact, the most recent Minnesota Department of Corrections facility population is at almost 9,400 people, many of whom will likely be released at some point. In 2020, 7,350 people were released from corrections facilities in the state, with over three-quarters going on to supervised release/parole. Given these statistics, another thing becomes evident – there will always be a need for individuals to work in corrections.
According to data from DEED's Local Area Unemployment Statistics program, Southwest Minnesota's unemployment rate dropped back to 3.2% in July of 2021, matching the low set in May of 2021. Among the six planning regions in the state, Southwest was the second fastest to return to its pre-pandemic unemployment rate levels, alongside Northwest Minnesota, which has also seen a rapid rebound to low unemployment. Many of the counties with the lowest rates in the state are located in Southwest.
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