Adults in Southwest Minnesota without a high school diploma or GED may find themselves in a uniquely advantageous time to find work. More area employers are considering applicants without a high school education to fill job vacancies during this time of historically low unemployment.
Fewer area residents who don’t have a high school diploma or equivalent are participating in the labor force – a trend since at least 2010. However, in a recent article for Minnesota Employment Review, DEED’s regional analysts Luke Greiner and Mark Schultz show that current labor market trends in Southwest Minnesota provide workers with the lowest levels of educational attainment with a unique opportunity to find employment.
Current labor market trends
Not only has the regional labor force seen a 2.5 percent decline since the start of this decade, a drop of over 5,500 labor force participants, but the region’s labor force participation rate has also seen steady declines over the years, dropping from 69.5 percent in 2010 to 68.0 percent in 2017 (see Figure 1). So it appears that part of the reason the region is seeing a very tight labor market is because fewer people are actively participating in the labor force (fewer people are working or looking for work).
Given the region’s current reality, many employers are finding themselves having to do one or more things to attract and retain employees. First, some are considering applicants whom they wouldn’t have considered in the past, such as those without a high school diploma or equivalent, with a criminal background or lack of work history. Second, some are increasing their starting wages and/or either beginning to offer benefits or increasing the benefits that an employee is eligible for. Other incentives some employers are utilizing to attract and retain employees are hiring bonuses, paid time off, and flexible scheduling.
Targeting potential employees in groups that have low labor market participation rates
One additional consideration for employers is trying to attract individuals from groups that have low labor force participation rates. One such group is those who do not have a high school diploma or equivalent. The labor force participation rate among individuals with less than a high school diploma is markedly lower than that of the region’s total labor force between the ages of 25 and 64 as well as compared to those with higher levels of educational achievement (see Table 1).
|
Table 1. Southwest Minnesota Employment Characteristics, 2017 |
|||
|
Characteristic |
In Labor Force |
Labor Force Participation Rate |
Unemployment |
|
Population, 25 to 64 years |
161,437 |
84.8% |
2.8% |
|
Less than High School Diploma |
9,494 |
68.8% |
3.5% |
|
High School Diploma or Equivalent |
47,576 |
81.4% |
2.2% |
|
Some College or Assoc. Degree |
63,243 |
87.4% |
2.5% |
|
Bachelor’s Degree or Higher |
41,129 |
90.1% |
1.3% |
|
Source: U.S. Census, American Community Survey |
|||
Like the trend seen in the total labor force outlined in Figure 1, the labor force participation rates for the prime working age population and individuals with less than a high school diploma have both decreased since 2010 as well (see Figure 2). Even as employers are looking at applicants without a high school education to fill job vacancies, subsequently opening up opportunities for those with this level of education, fewer of these individuals are participating in the labor force over time.
Time to act is now
Ten years ago, when the Great Recession was peaking, not having a high school diploma made it very difficult to find work as employers had access to a large supply of people with high school education or higher looking to find work when demand for employees was low. In today’s historically tight labor market things have changed, and many employers may find themselves considering individuals without a high school education to fill their vacancies.
It’s important for populations that face barriers in the labor market, including those without a high school diploma, to take advantage of the current economic conditions to gain experience and skills that will position them better for the future, when labor market conditions may not be so favorable. Increasing the labor force participation rate for people without a high school diploma could help them gain valuable skills that could provide necessary employment stability throughout changing economic conditions.
For more information, read the recent Minnesota Employment Review article Is Graduating from High School Still Relevant? by Luke Geiner and Mark Schultz.
