With a current ratio of just six job seekers for every 10 open positions in Southeast Minnesota, employers are desperately looking for more workers. CareerForce is focused on reaching out to several populations characterized by low labor force participation rates, high unemployment rates, or both. This has included people of color, recent immigrants, people with disabilities, and ex-offenders. Another potential undertapped talent pool: our vibrant youth population.
The most recent estimates from the U.S. Census Bureau’s American Community Survey show that the youngest working-age population in Southeast Minnesota, those between the ages of 16 and 19, have a significantly lower labor force participation rate than the other, older age cohorts. While the other working age groups through 64 years of age enjoy labor force participation rates in the 70 to 90 percent range, those between the ages of 16 to 19 see a participation rate of 56.5 percent. To put that in perspective, the next lowest participation rate (among 55 to 64 year olds) sits at 75.5 percent (see Table 1).
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Table 1. Southeast Minnesota Employment Characteristics, 2017 |
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|
In Labor Force |
Labor Force |
Unemployment |
|
|
Total Labor Force |
275,586 |
69.1% |
4.2% |
|
16 to 19 years |
15,474 |
56.5% |
14.2% |
|
20 to 24 years |
29,565 |
84.9% |
6.5% |
|
25 to 44 years |
106,308 |
88.2% |
4.0% |
|
45 to 54 years |
58,620 |
88.4% |
2.6% |
|
55 to 64 years |
51,084 |
75.5% |
2.4% |
|
65 to 74 years |
11,914 |
27.3% |
3.0% |
|
75 years & over |
2,542 |
6.6% |
2.9% |
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Source: 2013-2017 American Community Survey, 5-Year Estimates |
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In contrast to the lower participation rates, the youngest workers have the highest unemployment rates at 14.2 percent. That was more than three times higher than the overall unemployment rate for all workers, at 4.2 percent. Reducing unemployment rates for teenagers to match the overall rate would mean that more than 1,500 young people would find jobs, which would be a huge benefit for employers.
One way we have the opportunity to encourage more youth participation is if employers are willing to learn more about the process and accommodate youth in their workplaces. According to a 2018 report by Adrienne L. Fernandes-Alcantara for the Congressional Research Service, the decrease in youth participation is due to both demand and supply side factors. Fernandes-Alcantara reports that “On the demand side, youth have less education and experience relative to older workers. Youth may also face increased competition for jobs that require less education. On the supply side, a growing number of young people are enrolled in school, particularly post-secondary education, and thus have competing demands on their time. Overall, firms are more likely to hire workers with greater experience and availability.”
What else can we do to increase the youth participation rate? According to an article from Minnesota Compass by Allison Liuzzi, almost two-thirds of Minnesota youth participate in enrichment activities such as sports, artistic and physical lessons, or religious activities at least three times a week. Employers can actively recruit and accommodate the busy lifestyles of our young people today. Parents can encourage their children to get valuable experience through part-time jobs, internships or apprenticeships. School counselors can help tout the benefits of working and volunteering as well.
Should we coerce our youth to work? Of course not. Yet, we can encourage those that are willing and able to enter the labor force and reduce the barriers they have traditionally faced. “Consider hiring a youth today;” says Kenneth Johnson, DEED’s Workforce Strategy Consultant in Southeast Minnesota, “Many employers have told me it’s one of the best decisions they have made.”
For more information about youth employment in Southeast Minnesota, contact Kenneth Johnson kenneth.l.johnson@state.mn.us or Mark Schultz mark.schultz@state.mn.us.
