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Accelerating Economic Success August 10, 2004

Accelerating Economic Success August 10, 2004. Economic Success. DEED’s mission is to: S upport the economic success of individuals, businesses, and communities by improving opportunities for growth. Challenges in Greater Mn. Demographics

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Accelerating Economic Success August 10, 2004

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  1. Accelerating Economic Success August 10, 2004

  2. Economic Success DEED’s mission is to: Support the economic success of individuals, businesses, and communities by improving opportunities for growth.

  3. 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

  4. Median Age of Population - 2000

  5. Percent Population 65 and Over - 2020 Bureau of the Census, U.S. Department of Commerce

  6. Economic Development Skilled workers

  7. Business Dissolutions and Contractions - 2000 • High rate of contraction • across Greater MN • Data is “pre-recession!”

  8. Service Sector Earnings • Service sector jobs combine • low wage retail with high • wage professional jobs

  9. Average Earnings from Farming • Productive farm practices • lead to relatively high income

  10. Change in Farm Employment • But increased efficiency • results in less individuals • employed in agricultural

  11. Wage structure trends towards lower paying positions • Regional economic • centers skew data • slightly, but overall trend • is similar statewide

  12. Average Wage rate Fully 73% of all jobs pay less than $15/hr

  13. Laborshed is shrinking

  14. Projected Population Change2000 - 2030 • Negative or modest growth • across much of Greater • Minnesota

  15. Projected Immigrant Population Change2000 - 2030 • High rates of new • Minnesotans will • likely continue

  16. Distribution of People of Color2000 • Minnesotan’s of Hispanic • heritage are the largest group • Hmong are second followed • by Vietnamese and Somali

  17. Minority Population Growth

  18. 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

  19. 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

  20. 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

  21. 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

  22. 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 EDA’s working on “incubators” for start-up businesses

  23. 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

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