Writer: Eleana Terán
4 min read October 2022 — Unemployment figures in Minnesota made headlines earlier this year when it was announced that it had the lowest jobless rate any state has ever had at 1.8%. And despite seeing its first increase since May 2020, the state has continued to have the lowest unemployment in the country at 1.9%. While low unemployment has been an overall net positive for the state, it has not been equitable for all.
According to the Minnesota Department of Employment and Economic Development in August, the Black unemployment rate was 6.6%, 3 percentage points higher than last year and more than triple that of white individuals. Similarly, the Latino unemployment rate was nearly double that of white workers at 3.6%.
Racial gaps in unemployment exist throughout the U.S., however, Minnesota experiences a wider gap than national trends. A March 2021 study on the state’s disparities in unemployment suggests that the gap in Minnesota is larger than elsewhere because the white unemployment rates are much lower in the state than anywhere else in the country.
The National Employment Law Project (NELP) acknowledges that change is necessary to enable all workers to thrive and believes this trend is not inevitable. The organization believes that policies can help bridge the gap and prevent racial discrimination by using tools such as audit testing and working to restore stable, unionized jobs in the public sector.
Leaders across the region recognize that workforce will continue to be a challenge for all communities for the foreseeable future, heightening the importance of addressing employment gaps.
“We needed to address equity differently than what’s already been tried, and we realized that the city would benefit greatly if we did so successfully,” R.T. Rybak, president and CEO of the Minneapolis Foundation, told Invest:. “ We have been engaged in community rebuilding and reimagining.”
When looking back at his professional experience, Rybak is particularly proud of the work around developing the next workforce, especially the Step Up summer job program that started in 2003, of which he continues to act as Co-Chair.
“We have put 20,000 young people into high-quality summer jobs, working with every major employer in the community. About 90% of them are kids of color and more than 50% are from immigrant families. We have seen the diversity of young people as an asset, and we have a global workforce that can outperform that in any other city in the U.S. We can compete globally because we have a workforce that represents the globe, and we have a disproportionate number of global companies compared to peer regions,” said Rybak.
Similarly, Peter Frosch, CEO of Greater MSP shared with Invest: the projects they are working on to promote equity. The organization is collaboratively raising a $50 million venture capital fund “that will be 100% invested in BIPOC and women founders across the state. Several companies have joined that fund and we are continuing that raise throughout the year,” he said.
As Denise Mazone, president of Minneapolis Area Realtors noted, “we need to have an even playing field. When we talk about diversity, equity and inclusion (DEI), it is not just about being invited to the dance but about being asked to dance as well.”
This is why community leaders like Paul Edlund, CEO of J. Benson Construction are passionate about not only building, but building opportunity for people through several projects such as Summit Academy. The Career and Technical Education (CTE) Institute serves the community in growing a skilled and diverse workforce that helps ensure stability for the region’s economy while connecting low-income people with the tools they need to escape poverty.
Additionally, Edlund works with the Community Productive Day program through Hennepin County. “It employs people that have been convicted of a criminal offense, who are placed on probation or have come out of prison,” he said. “What is unique about this program is on the contractor side that works with small, minority-owned contracting firms. My peers in that program are black-owned, relatively small construction firms. This allows us to have an opportunity for some set-aside projects through the county and to engage with these probationers in a unique way. It is a win-win for the county, where the county gets to help employ some of these people and they also get to promote some of these minority-owned construction firms, helping them develop and grow.”
These types of programs are critical, especially considering that during economic booms or downturns, the unemployment rate of white workers in Minnesota is consistently lower than Black and Latino workers. Frosch stated that, “the opportunity is for the state agency and employers to be working with community-based projects and to access additional potential workers. I think part of the opportunity is to value some of these organizations and networks more than we had in the past and find access to communities that are not fully engaged in the economy today.”
For more information, visit:
https://www.minneapolisfoundation.org/
