Demographics Of Labor Shortage In Minnesota Tom Gillaspy, State Demographer Minnesota Planning January 2001

Minnesota's Unemployment Rate Is Low And Falling

Change In Ramsey County Workforce

Population Change In Minnesota Increased In The 90s

l Most come from neighboring states, Texas, California, and Illinois. l Minnesota's migration depends not only on conditions here but also those of our trading states. l These conditions have been very favorable for Minnesota since the mid 1980s Minnesota Is Riding A Wave Of In- Migration Since 1987

Minnesota's Population Is Aging: Projected Population 2000 to 2010

Minnesota Employment Growth In The 90s Is Similar To Growth Since 1950 But It Is Faster Than Labor Force or Working Age Population

Employment To Population Ratio

Growth In The Working Age Population Is Projected To Slow

Minnesota State Government Workforce Is Aging Rapidly

n The shortages appear to be greatest at the highest and lowest skill level occupations. n As higher wage jobs become available, people tend to move from the lower wages jobs to the higher wage ones, further aggrivating the shortages in the lower wage occupations. n This process should place upward pressure on wages and benefits in the lower wage jobs, unless there exists barriers to increasing wages. Increasing Shortages In Lower Wage Occupations

n Improve wages, benefits and working conditions especially to retain existing workers as well as to attract new ones. n Make use of new sources of labor, such as welfare recipients, retirees, disabled, and immigrants. n Increase per worker productivity. Includes making existing workers more productive as well as hiring or promoting people from lower wage jobs. Some Possible Business Responses To Labor Shortage