Opportunities for workers, challenges for employers remain in second quarter 2022



Minnesota Department of Employment and Economic Development Press Release


*For Immediate Release*




Rita Beatty

[email protected]

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April 14, 2023

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*Total Minnesota Job Vacancies Drop from Record High; Many Industries and Occupations Had Openings at or Near Historical Highs*

"Opportunities for workers, challenges for employers remain in second quarter 2022"

*St. Paul* - Minnesota employers had nearly 185,000 vacancies during the second quarter of 2022, down 10.3% from second quarter 2021, according to Job Vacancy Survey (JVS) results released today by the Minnesota Department of Employment and Economic Development (DEED).

?Job Vacancy Survey results show continued strong demand for workers across the state ? for every unemployed Minnesotan there are more than two open positions available,? said *DEED Interim Commissioner Kevin McKinnon*. ?The tight labor market presents opportunities for people looking for work in Minnesota. It also presents challenges for employers who need workers to continue operations and grow their business. DEED is committed to helping connect people who need work with the employers who need them through our CareerForce services, employment and training programs, Vocational Rehabilitation Services and more. We?ve helped tens of thousands of people over the past year ? and we?ll continue this essential work.?

The 184,588 vacancies translate to a job vacancy rate of 6.9%, or 6.9 job openings for every 100 filled jobs in the state. This rate is down from 8.0% one year ago. Despite that decline, this is the third largest number of vacancies and third highest vacancy rate since JVS launched in 2001.

The number of unemployed Minnesotans also declined, offsetting some of the declines in job vacancies and resulting in continued intense competition for workers. With around 72,500 unemployed workers statewide in second quarter 2022, there were 0.4 unemployed persons for each vacancy ? meaning there were more than twice as many open positions as unemployed individuals in Minnesota. This is the same as fourth quarter of 2021, but down slightly from second quarter 2021.

JVS results show the Health Care & Social Assistance industry had the most job vacancies with more than 45,000 openings, followed by Retail Trade with almost 28,500 vacancies, Accommodation & Food Services with nearly 26,000 postings, and Manufacturing with nearly 19,000 vacancies. Combined, those four industries accounted for two-thirds of the total openings in the state. Four industries had a higher job vacancy rate than the average across all industries: Accommodations & Food Services at 13.3%, followed by Retail Trade at 10.2%, Agriculture, Forestry & Fishing at 9.9%, and Health Care & Social Assistance at 9.2%.

The ten individual occupations with the highest number of vacancies in the JVS results were Personal Care Aides with 7,798 vacancies; Retail Salespersons with 6,241 vacancies; First-line Supervisors of Food Prep & Serving Workers with 5,977 vacancies; First-Line Supervisors of Retail Sales Workers with 5,975 vacancies; Registered Nurses with 5,625 vacancies; Cashiers with 5,535 vacancies; Fast Food & Counter Workers with 4,756 vacancies; Nursing Assistants with 4,418 vacancies; Waiters & Waitresses with 3,615 vacancies; and Maids & Housekeeping Cleaners with 3,263 vacancies.

?DEED is focused on addressing the labor force shortage and connecting people with jobs that pay family-sustaining wages,? said *DEED Deputy Commissioner for Workforce Development Marc Majors*. ?The Governor and Lieutenant Governor?s workforce priorities proposed in the One Minnesota Budget will develop workforce training programs to help Minnesotans prepare for careers in caring professions, manufacturing, tech and other high growth industries. We are committed to actively reaching out to groups who are overlooked, such as people of color, immigrant communities, Minnesotans with disabilities, youth and people connected to our criminal justice system, to ensure everyone is aware of these great training opportunities and career pathways.?

Proposals in the One Minnesota Budget [ [link removed] ] aimed at addressing Minnesota?s labor shortage include:

*Growing Minnesota?s Workforce through the Drive for 5 Workforce Fund:*

The Governor and Lieutenant Governor recommend investing $30 million next biennium to support the Drive for 5 Workforce Fund. This initiative will prepare a workforce to enter five of the most critical occupational categories in the state with high-growth jobs and family-sustaining wages: technology, caring professions, education, manufacturing and trades. The Drive for 5 Workforce Fund will create a pipeline of workers who are skilled and prepared to enter high-growth employment with high-wage potential and begin to address Minnesota?s high job vacancy rate. The Drive for 5 Workforce Fund is rooted in targeting populations that face the biggest barriers to employment: people of color, people with disabilities and those who face other systemic barriers.

*Decreasing Disparities*

Minnesota continues to experience a high number of job vacancies and low unemployment. However, the unemployment rates for Black Minnesotans and Hispanic or Latino Minnesotans are higher than white Minnesotans. Governor Walz and Lieutenant Governor Flanagan recommend investing $60 million for employment services and training to bring workers often overlooked, particularly people of color, into the workforce at family-sustaining wages. This is a critical initiative to bring all Minnesotans into the workforce, ensure employers have the staff to help their businesses thrive and move Minnesota?s economy forward.

*Establishing an Office of New Americans * Minnesota?s new Americans create robust businesses, offer extraordinary cultural contributions, and meet labor needs in many Minnesota communities. However, there are multiple barriers to getting established in Minnesota. Governor Walz and Lieutenant Governor Flanagan propose establishing an office explicitly focused on supporting immigrant and refugee integration, reducing barriers to employment and improving connections between employers and job seekers.

*Preparing More Youth to Enter the Workforce* To identify a workforce to fill historic job vacancies, Minnesota needs to expand who is served by workforce training programs and to invest in populations that have multiple barriers to employment. Youth are particularly important for filling current and future vacancies. Expanding Minnesota?s high functioning and results-driven Youth at Work, Minnesota Youth Program and YouthBuild programs will prepare more youth to enter the workforce focused and work-ready. The Governor and Lieutenant Governor recommend doubling the existing funding for youth workforce development ? which would serve at least 38,000 young people.

*About the Job Vacancy Survey:*

Employers provide information on their job vacancies twice a year to enable us to estimate hiring demand and job vacancy characteristics by industry, occupation and firm size in Minnesota. The information is gathered through a survey of 6,225 firms stratified by six regions of the state, 20 industry sectors, and four firm size classes. The survey had a response rate of 80.1% in second quarter 2022.

These data provide job seekers and counselors with information on occupations showing hiring demand within their region. The information also helps employment, training and education providers understand current labor market conditions in their region and tailor services to better meet customer and employer needs. Finally, the data provides a leading labor market indicator.

For more detail on vacancy numbers and rates by industry and occupation, as well as regional analysis, educational and experience requirements, wage offer trends and historical information, visit the Job Vacancy Survey page [ [link removed] ] on the DEED website.

"DEED is the state?s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the?DEED website [ [link removed] ], the?JoinUsMn.com [ [link removed] ]?website, or follow us on?Twitter [ [link removed] ]."

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"Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161."





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