Grow Minnesota!

… Generally: ”Eyes & Ears” on the Development & Growth of Our Economy

…Today’s Focus: Workforce: What We’re Hearing

What Is Grow MN!?

• Private sector economic development……strategic links to public sector

• MN Chamber sponsored

• 59 local chamber partners

• 3 parts to the program: – Business retention– Business assistance– Business expansion

Grow Minnesota! Visit – 3 Parts

• Say, “Thank you!”

• Ask, “How can we help your business?”

• Ask, “How to make business environment better?”

Grow MN! 2010-2011 Results

• 990 one-on-one business retention visits

• 23% are revisits

• 122 firms assisted, affecting 4,900 jobs……15 expansions

• BusinessConnection:– 940 on line searches completed– 50 email questions answered

Sales (2010-2011)

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Increased RelativelyStable

Decreased FluctuatedWidely

Responses

Per

cen

tag

e

State (N=582) St. Cloud (N=49)

Sales & Profitability -- Last 2 Years

Profitability (2010-2011)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Increased RelativelyStable

Decreased FluctuatedWidely

Responses

Pe

rce

nta

ge

State (N=541) St. Cloud (N=48)

58%

60%

62%

64%

66%

68%

70%

72%

74%

76%

78%

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Fiscal Year

Pe

rce

nt

Businesses Creating New Products in the Last Two Years

Expansions – Next Two Years

Current Community 66%

In MN 15%

Another State 9%

Another Country 2%

Don’t Know 8%

• 2010: 147 (25%)

• 2011: 198 (29%)

• Where: 2011

Workforce: A “New Normal”

• Jobs are being created…

• But, they are different……Mismatch of current skills & current openings

• Persistent problem…growth or recession

Expected Job Growth, Next Year

4%

66%

27%

3%6%

52%

41%

2%

0%

10%

20%

30%

40%

50%

60%

70%

Unsure Stable Increase Decrease

Perc

en

t

2009-2010

2010-2011

Responses 2009-10 N = 600

2010-11 N = 488

Recent Issues Recruiting Employees?(2010-2011 Results)

33%

66%

1%

Yes

No

Unsure

N=667

Key Workers – Still in Short Supply(2010-2011 Grow MN! Results, N = 488 companies)

72%

42%37%

31%

25%22%

19%

9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Job Type

Per

cen

tag

e

Job Type# of Companies Seeking Workers

% Reporting Unfilled Jobs

Precision Production 216 72%

Professional/Management 185 42%

Clerical/Office Staff 185 37%

Sales/Marketing 178 31%

Information Technology 155 25%

Other 73 22%

Part-Time 149 19%

Temporary/Contract 127 9%

Key Workers – Still in Short Supply(2010-2011 Grow MN! Results)

Labor Force Growth Will Slow Sharply(Source: State Demographer)

1.12%

0.75%

0.43%

0.10% 0.13%

0.27%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

2005-10 2010-15 2015-20 2020-25 2025-30 2030-35

Ave

An

nu

al C

han

ge

Migration: Best Source of New Workers?

-100,000

0

100,000

200,000

300,000

400,000

500,000

2000-10 2010-20 2020-30

Total Natural Part Rate Migration

Net Labor Force Growth

State Demographer projection revised 2007

What Should We Do?

• Understand what employers need

• Change systems accordingly

• Be ready to change again!

Employers: 4 Patterns

• Basic skills, work ethic & OJT

• Basic skills, work ethic, OJT then “higher” ed

• “Jack of all trades” & work ethic

• Basic skills & higher ed

• 300 Employees

• 15% - 4 Yr Degree

• 10% - GED

• 75% - 2 yr (at least) technical training

Albert Lea High School Curriculum

Change The Systems

• K12 – What’s “basic” today? Tomorrow?

• Higher ed – all types– Right courses– Right content

• Dislocated worker programs – time to rethink them?

Be Ready To Change Again!

Questions?