MPR: Minnesota's Hidden Workforce

Minnesota's Hidden Workforce
By Bob Kelleher
December 15, 2000

Unemployment remains low across Minnesota, despite a slowing economy. In Northeast Minnesota's Arrowhead, the jobless rate hovers around three percent, but new data shows that many of those with jobs are either working below their abilities, or making less money than they could elsewhere. Economic development officials hope to convince new employers the region's underemployment represents a hidden work force - that's ready to be tapped.

To learn more about the "hidden" skills of Minnesota, see the survey.

ON MONDAYS, Raoul Miller leaves his Duluth home behind and drives more than 150 miles to his job in Eden Prairie. On Fridays he's back northbound on Interstate 35. Miller would rather just stay in Duluth, but he gets paid much better in Eden Prairie, where he designs and maintains computer systems.

A 1998 wage survey found a typical systems analyst was making less than $30,000 in Duluth, while the average wage statewide was nearly $50,000.

"When I do see openings, generally they're very underpaid," he says. "There's an expectation that you'll pay a big premium for the pleasure of living in Duluth."

Some residents stay for the area's natural gifts, like the Boundary Waters Canoe Area and Lake Superior. Others might stay to be near family and friends.

Economist Richard Lichty conducted the Northeast Minnesota Skills Assessment with the University of Minnesota Duluth.

"People have lived here for very long periods of time; I think they're very reluctant to leave," he says. "They try to hang on. They try to keep their jobs or keep a job that'll keep them going, hoping something better will come along."

Underemployment could be a problem in rural areas across the state, but it's best documented in the Arrowhead. Lichty's survey found 35 percent of the respondents with a job, believe their jobs don't fit their skills. A third of those consider it very difficult to find appropriate jobs in the region.

Lichty says his results are supported by a statewide survey that asked Minnesotans where in the state they would like to live.

"Northeast Minnesota was the only region in that survey that had more people wanting to move in than wanting to move out; showing again that it's a region that's a desirable place to live, if there were adequate work here," Lichty says.

To an economist, underemployment represents inefficiency, but it has its positive side as well. Established businesses can get good employees for less.

"It might be an opportunity, as firms come into the region and realize there may be workers they can attract that don't show up on the official statistics," Lichty says.

"If we want to be able to go sea kayaking right after work, then we can't expect to make as much money as we would in Eden Prairie,"

- Raoul Miller

The study was commissioned by the Iron Range Resources and Rehabilitation Board. Program Director Phil Bakken says the region's employers have historically had the advantage over workers. But what's good for some businesses is not necessarily good for the region.

"Our goal is to try to raise those wage levels, which in turn makes the economy stronger. But, unfortunately, there are some businesses that may not be able to be competitive when it comes to those wages," Bakken says.

If better jobs can be attracted, established employers will have to compete for workers with comparable pay packages. Bakken says it's already happening. A new dental plan call center in Gilbert has siphoned off workers from other telephone bank employers.

"As we raise the bar on these employers - when we try to find companies that want to expand or pay a little higher wages, especially in the technology area - that will take place," Bakken.

The need to bring new employers to northeast Minnesota will intensify this winter when LTV Steel closes it's taconite operation in Hoyt Lakes. Other jobs have been eliminated in the region's paper and wood products plants.

Raoul Miller - the computer tech who commutes to Eden Prairie - says parity isn't even necessary; just something a little closer to parity.

"If we want to be able to go sea kayaking right after work, then we can't expect to make as much money as we would in Eden Prairie," Miller says.

State officials may soon have a grip on whether underemployment is a factor in other parts of Minnesota. The Legislature has funded a statewide study on its work force, including an attempt to measure underemployment across the state.

Bob Kelleher covers northeast Minnesota for Minnesota Public Radio. Reach him via e-mail at bkelleher@mpr.org.

	Sign up to receive e-mail newsletters

	Audio help

	Text: Sm : Md : Lg