Accelerating Economic Success

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Accelerating Economic Success August 10, 2004
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Economic Success

• DEEDs mission is to
• Support the economic success of individuals,
  businesses, and communities by improving
  opportunities for growth.

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Challenges in Greater Mn

• Demographics
• Population trends follow national patterns, but
  with significant regional variation
• Skilled workers are increasingly in short supply
• Economic Base
• Diversity of economic base is decreasing
• Lower pay jobs versus higher pay jobs
• Reduced labor pool forces employers to examine
  alternatives
• Cultural
• Increasing diversification challenges and
  opportunity

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Median Age of Population - 2000
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Percent Population 65 and Over - 2020
Bureau of the Census, U.S. Department of Commerce
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Economic Development
Skilled workers
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Business Dissolutions and Contractions - 2000

• High rate of contraction
• across Greater MN
• Data is pre-recession!

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Service Sector Earnings

• Service sector jobs combine
• low wage retail with high
• wage professional jobs

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Average Earnings from Farming

• Productive farm practices
• lead to relatively high income

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Change in Farm Employment

• But increased efficiency
• results in less individuals
• employed in agricultural

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Wage structure trends towards lower paying
positions

• Regional economic
• centers skew data
• slightly, but overall trend
• is similar statewide

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Average Wage rate
Fully 73 of all jobs pay less than 15/hr
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Laborshed is shrinking
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Projected Population Change2000 - 2030

• Negative or modest growth
• across much of Greater
• Minnesota

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Projected Immigrant Population Change2000 - 2030

• High rates of new
• Minnesotans will
• likely continue

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Distribution of People of Color2000

• Minnesotans of Hispanic
• heritage are the largest group
• Hmong are second followed
• by Vietnamese and Somali

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Minority Population Growth
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What does this data mean?

• New Minnesotans represent
• New workforce to offset aging population
• New laborshed for future employers
• Significant opportunity to leverage
  entrepreneurial interest
• New Minnesotans can
• Add local economic value through payroll
• Create opportunities for local school districts
  to maintain their viability
• Sustain higher education initiatives through
  increased demand

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But barriers exist

• Housing
• Available housing stock is critical to economic
  success
• Has tremendous impact on community success in
  marketing economic opportunities
• Healthcare
• Healthcare needs are different for different
  people
• Opportunity exists to market these services as
  a value-add
• Financial
• Access to insurance and banking needs is key
• Not all cultures understand these key economic
  barriers

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What can we do?

• Housing
• Minnesota Housing Finance Agency (MHFA) targets
  new housing stock in Greater Minnesota
• Small Cities Development Program (yearly awards
  from DEED) are weighted heavily towards housing
• City of Marshall 1,196,800To rehabilitate 40
  residential renter occupied units, 30 single
  family homes owned and occupied by low and
  moderate income families and 20 commercial
  buildings, as well as for temporary relocation
  where lead hazard control activities require
  families to leave their homes during
  construction.
• Marshall County 519,500Marshall County will
  use its 519,500 SCDP grant in conjunction with
  funds from the MN Housing Finance Agency and
  local funds to rehabilitate the homes of 20
  income-qualified families
• These are just two of 31 awards

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What can we do?

• Healthcare
• Minnesota Jobs Skills Partnership awards
• AppleTree Dental Career opportunities for
  low-income/minority wage earners in the dental
  field in Greater Minnesota
• Healthcare Institute Abbott Northwestern
  created a career ladder program for new hires
  to learn, test, and certify themselves on
  value-add healthcare careers
• Department of Health
• Summer Health Care Intern Program Internships
  funded by the Office of Rural Health and Primary
  Care

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What can we do?

• Financial
• USBank and Goodwill created the Financial Careers
  Institute for low-income/minority wage earners to
  learn banking skill sets for employment
• Southwest Initiative Foundation has a
  entrepreneurial start-up program in Spanish
• Banking and Insurance material is distributed via
  our workforce center system (not in all locations
  yet)
• Translation of State publications on how to start
  a business, etc., is underway
• Many EDAs working on incubators for start-up
  businesses

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What can we do?

• Multiple state and local resources exist
• Coordination/Communication remain the best way to
  leverage all assets to assist new Minnesotans
• Businesses should be a cornerstone in how a
  community approaches new citizens
• Laborshed issues are growing daily
• Access to labor pool will be a gating factor in
  long-term community success
• Education (primary and higher ed) are key players
  in community/regional success
• Immigration brings with it opportunity and hope
• New Minnesotans offer new life to many of our
  rural communities