1. Central Minnesota Manufacturing: The Current and Future Workforce Luke Greiner Regional Labor Market Analyst Department of Employment and Economic Development Labor Market Information Office http://mn.gov/deed/data/ Minnesota Department of Employment and Economic Development

3. Current Situation The state’s labor markets followed February’s revised gain of 8,700 jobs with a loss of 2,900 in March. The private sector shed 2,100 with another 800 jobs lost in the public sector. The unemployment rate held steady at 3.7% for the fifth straight month, while the labor force level and participation rate increased again to 71.2%, a rate not seen since September 2010. Annual job growth dipped in March to 35,940 or 1.3% with annual private sector gains also falling to 34,668 (1.5%). Major sectors that saw gains during the month included professional & business services (up 1,500), manufacturing (a gain of 1,000), trade, transportation & utilities (+700) Losses occurred in education & health care (off 1,700), construction (down 1,600), leisure & hospitality (off 1,400), other services (-1,000), government (-800)

4. The Labor Market… Its Tight Right Now

5. Pop Quiz! What is the median hourly wage offer for current manufacturing jobs? $15.91, $15.91, 26% higher than all industries ($12.61) What share of manufacturing openings are part- time? 2%, 2%, (40% for all industries) What type of manufacturing grew the fastest in Central Minnesota the last year? Chemical Manufacturing, grew by 34.1%! Chemical Manufacturing, grew by 34.1%! With just over 600 jobs representing 1.6% of manufacturing jobs.

6. Manufacturing Trends In the last 10 years manufacturing employment decreased by 4%, while the total economy gained 4%. Not every subsector within manufacturing shed jobs however, and in the last year manufacturing grew by 2.9% compared to 1.6% for all industries. top five Growth Focused in the top five

7. Manufacturing Occupations In Demand with Median Wage Hand Packers and Packagers, $9.25 Welders, $18.61 Slaughter and meat packers, $13.05 First line supervisors of production and operators, $25.97 Industrial Engineers, $37.35 Machinists, $23.00

8. Anyone know what this means?

10. AGE

11. Age Trends

12. Future Population Projections Following the growth trend future predictions show Central Minnesota is expected to gain nearly 114,000 net new residents by 2035. Much of the growth will be in the older age groups. The 65+ cohort is expected to increase 102%. In contrast the population of school aged children is expected to decline slightly.

14. Anyone Need a Refill on Coffee?

15. In the last 19 years female employment grew by 35.6%, 5.3 points faster than males (+30.3%) for all industries. In manufacturing female employment fell (- 23.3%) while male employment edged up +4.7%) Female employment declines contribute to the overall decline in employment.

16. Please hold back your excitement over this line graph

17. Educational Attainment Holding Steady 1995-2014 Change in Ed. Attainment, Central Minnesota Educational AttainmentMfgTotal, All Ed. attainment not available (workers <25)-49.5%3.6% Less than high school11.8%50.5% High school or equivalent, no college-6.6%30.1% Some college or Associate degree10.6%51.4% Bachelor's degree or advanced degree10.2%38.1% The largest change in manufacturing is not from shifting job requirements, more so the result of public and private company policies. (Need to have diploma to apply) The largest job growth came from the least educated workers in Mfg. About 40-50% of Mfg. openings require some form of Higher Ed.

19. RACE/ORIGIN Although Central Minnesota is less diverse than the state, its catching up. Mille Lacs is the most diverse county with 6.9% of residents reporting their race as American Indian/Native Alaskan, followed by Stearns County where 4% identified as Black or African American Race and Hispanic Origin, 2014 Central MinnesotaMinnesota NumberPercent Change from 2000-2014 Percent Change from 2000-2014 Total688,135100.0%19.9%100.0%9.4% White645,48593.8%16.7%85.2%4.2% Black or African American12,8631.9%299.8%5.4%69.2% American Indian & Alaska Native5,1050.7%40.1%1.0%2.8% Asian & Other Pac. Islander7,5201.1%66.7%4.3%61.8% Some Other Race6,1990.9%28.5%1.5%19.8% Two or More Races10,9631.6%127.1%2.6%68.0% Hispanic or Latino origin22,1663.2%95.9%4.9%84.3% Source: U.S. Census Bureau, American Community Survey Employment Characteristics by Race and Ethnicity Central MinnesotaMinnesota In Labor Force Labor Force Partic. Rate Unemp. Rate Labor Force Partic. Rate Unemp. Rate White alone359,47371.2%6.2%70.2%5.6% Black or African American5,10457.9%17.8%68.0%16.4% American Indian & Alaska Native1,94652.7%17.5%59.4%17.4% Asian or Other Pac. Islanders4,36873.4%9.5%70.6%7.2% Some Other Race2,74570.4%12.8%76.2%11.0% Two or More Races3,83172.4%9.6%69.5%13.2% Hispanic or Latino9,60570.6%12.4%75.0%10.1%

20. Changes in the Education System Overall school enrollment growth is nearly a wash, increasing 1,619 since 2008 (+1.3%) The underlying data shows that enrollment is changing, white enrollment is down 3%, (-3,217) while minority enrollment across Central Minnesota has expanded 45% (+4,836) 55% of the minority enrollment growth is from Black students 36% is from increased Hispanic enrollment growth has been in +61% +29% +13%

21. Education Matters The lowest participation rate and highest rate of unemployment is among those without a H.S. diploma or GED. There are an estimated 20,706 residents in Central Minnesota without a diploma or GED between 25 and 64 years. Employment Characteristics by Race and Ethnicity Central MinnesotaMinnesota In Labor Force Labor Force Partic. Rate Unemp. Rate Labor Force Partic. Rate Unemp. Rate Population, 25 to 64 years302,73684.4%5.6%84.0%5.4% Less than H.S. Diploma14,61470.6%11.9%65.8%13.1% H.S. Diploma or Equivalent84,25580.0%7.4%79.1%7.3% Some College or Assoc. Degree126,32186.3%5.4%85.3%5.6% Bachelor's Degree or Higher77,50490.0%2.8%89.2%3.1% Source: 2010-2014 American Community Survey, 5-Year Estimates

22. Holding roughly 1,069 Mfg. jobs, Black/African Americans increased employment by 560%, although the share only increased from 0.4% in ‘95 to 2.6% in 2014. No minority group saw a decline over the 19 year period, White employment decreased by -8.3%.

23. What's the most desired skill employers are looking for in new hires in our region? Oral and written communication skills, Included in more than twice as many job postings as the second (marketing) and third (customer service oriented) most mentioned skill in job openings While this is a hiring barrier it also creates lower earning potential for new immigrants who have jobs. The Language Barrier

25. Other LMI products and publications Local Look Regional Blog  Monthly blog covering regional economic trends  Workforce insights. Occupations In Demand, Unemployment Rates Minnesota Economic TRENDS  Quarterly magazine on economic topics  Subscriptions available free of charge or on-line Minnesota Employment REVIEW  Monthly magazine on economic data and regional trends  Includes Minnesota business development  Available exclusively on-line http://mn.gov/deed/review http://mn.gov/deed/trends http://mn.gov/deed/data/locallook/

26. Thank you! Please let me know how I can help! Luke Greiner Regional Labor Market Analyst Labor Market Information Office Phone: (320)-308-5378 Luke.greiner@state.mn.us