MN's rural job vacancy rate eases but still on troubled ground

New data show improvements in reducing job vacancy rates in Minnesota but researchers said the numbers are still too stubbornly high in most rural regions.

The Center for Rural Policy and Development released an analysis of state survey data on filling the many job openings around Minnesota. It showed rates have climbed down from their pandemic peak but leaving out the Twin Cities and southeast region, they are still above what's considered healthy levels.

Kelly Asche, senior researcher at the center, said smaller towns and cities have jobs to fill but the talent is not lining up for them.

"In the 1970s and '80s, we were all worried about how do we get more jobs to our rural areas 'cause we had people that were unemployed," Asche recounted. "Now, we have so many jobs and we just don't have the people to fill those jobs. And so, it's a very different world."

The center said it is a glaring issue in southwestern Minnesota, which has about 90% more openings than it did two decades ago but unlike most other regions, it is seeing negative movement in hiring.

Asche explained if the problems persist, companies will leave, making it even harder for communities to provide services for their aging populations.

As older residents leave the workforce, Asche noted municipal leaders are having different conversations these days about attracting younger workers and it is not just about building a new industrial park.

"How do we provide more housing? How do we provide child care?" Asche outlined. "Things that make people want to move to these areas, such as parks and natural amenities."

Asche acknowledged an awareness gap about job opportunities in rural areas offering strong wages. He pointed out residents might think they have to move to the Twin Cities or attend school out-of-state to launch a career. However, their local technical college might offer courses to train them for a job paying more than minimum wage. The findings suggested a job vacancy rate of around 4% is manageable but four of Minnesota's six geographic regions are at 5% or higher.