A low unemployment rate may be good for the economy, but it can make hiring new employees a challenge. While there were certain challenges with the COVID-19 pandemic, many of those are reversing now that much of the state is going back to business as (somewhat) usual.
Many companies saw drastic belt-tightening at the beginning of 2020, as governments provided mandates to protect people from COVID-19. With significant numbers of people laid off, unable to work or uncomfortable working, a lot of businesses were operating with a smaller staff.
Here’s what you should know about the changes in the unemployment climate in Minnesota.
Unemployment continues downward trend
While 2020 was a challenge for people across the country, Minnesota was not the hardest hit. In April of 2020, Minnesota was starting to see unemployment numbers just over nine percent while the country as a whole was over 14 percent.
A year later, there is a significant positive trend both for the country and the state. In June this year, Minnesota still saw improvements, with unemployment reaching four percent.
Getting back to work
From March to June of 2020, over 600,000 Minnesotans filed unemployment claims, many of them because of layoffs associated with COVID-19. Now that the state has made several steps towards reopening, those numbers are dwindling significantly.
A recent study looked at people who sought unemployment and whether they continue to be unemployed. Of the people who filed unemployment claims, fewer than 25 percent are still unemployed.
As the unemployment rate in the state and the country trends down, it could become challenging to find employees. Employers may need to start offering more benefits to attract people who can support their businesses.