Tyler Schipper, associate professor of economics at the University of St. Thomas, spoke with MinnPost about the hidden stresses emerging in Minnesota’s economy despite strong headline indicators. Schipper explained why rising unemployment duration, mismatched job openings and widening gaps in opportunity signal deeper structural challenges for many workers across the state.
From the article:
Minnesota’s unemployment rate is relatively strong compared to the rest of the country, despite ticking up more than a percentage point since the beginning of the year.
So why do things feel harder for many Minnesotans? It’s not just vibes. Economists looking at “microdata” see some troubling trends under the hood. ...
Local nonprofits that aim to match workers to jobs, such as RISE Twin Cities, Goodwill-Easter Seals, and Better Futures Minnesota have noticed clients waiting longer for interviews and placements than they used to.
“Duration is the canary,” said Tyler Schipper, associate economics professor at the University of St. Thomas. “When people are out of work longer, even when openings look high on paper, that tells you something in the matching process is breaking down.” ...
“We’ve had a sectoral rotation toward care work and service work,” Schipper said. “There’s dignity in those jobs, but the wage ladders are shorter. And the state hasn’t regained the white-collar jobs that power long-term income growth.”
