Report offers recommendations to policymakers, business leaders, and educators.
A comprehensive report on Minnesota’s workforce crisis, co-sponsored by Presbyterian Homes & Services (PHS), Minnesota Business Partnership (MBP), and SullivanCotter, was released on Monday, September 18, 2023.
The report, entitled Minnesota’s Vanishing Workforce, provides a data-driven examination of the trends and forces driving workforce shortages in general, and in healthcare specifically, across the state. The report also identifies strategies to mitigate the problem. Economists from leading labor market analytics firm Lightcast (formerly Emsi Burning Glass) authored the report that examines the demographic changes and other factors causing Minnesota’s “demographic drought” and offers strategies for policymakers, employers, and educators to alleviate the people shortage.
“PHS initiated this report and served as lead sponsor because, even as we reconsider every part of our organization in light of workforce challenges, we felt called to do more,” said Brandon Due, PHS vice president.
He explained, “Our number one strategic challenge is finding and retaining employees to serve a rapidly growing number of older adults amidst near zero workforce growth. We set out to foster a broader dialogue and identify common cause actions for people and organizations all around the state to step into this challenge together. We hope this report serves as an objective assessment of where we have been, where we are, and some of the choices we have as we prayerfully consider next steps.”
Among the report’s key findings:
- Employment in Minnesota is not recovering as fast as total U.S. employment post-COVID. Minnesota still needs 168,000 more people in the labor force to fully recover to where the workforce would have been in the absence of the pandemic.
- The state’s fertility rate dropped from 1.95 in 2011 to 1.75 in 2021. This is equivalent to a loss of about 285,000 individuals, or 5% of the state’s population.
- Relative to other states, Minnesota is struggling to attract and retain workers. According to Lightcast’s 2022 Talent Attraction Scorecard, Minnesota ranks 46th in attracting and retaining talent.
- Minnesota’s population will continue aging more rapidly than the nation as a whole. Between 2020 and 2030, Minnesota’s population will age more rapidly than during any other period.
- Strategies to mitigate worker shortages include boosting the state’s labor force participation rate, especially among groups that have historically had weaker attachment to the labor market; increasing domestic and international migration; reskilling and upskilling workers; adopting public policies that encourage work-based learning; improving alignment between job requirements and available talent.
Jeff Harmening, Chair of the MBP and Chairman and CEO of General Mills, said, “Demographic changes and other factors will profoundly alter the composition of Minnesota’s workforce in the years ahead. This will require Minnesota to think differently about how to attract and retain workers, optimize the state’s workforce, and set our state on the right path for the future.” Harmening continued, “Effectively confronting Minnesota’s workforce challenges will require the active engagement of policymakers, business leaders, and educators. Working together, we can ensure a bright economic future for Minnesota.”
Report authors Dr. Rachel Sederberg and Elizabeth Crofoot will host a free webinar on Thursday, September 21 at 12:00 PM (CDT) to discuss the report’s findings and answer questions. Click to register.
