In the second half of March through the first week in April, more than 40,000 workers in Central Minnesota filed UI claims, a nearly 2000% increase compared to the number of claims filed in March of 2019. In the next three weeks in April, another 26,165 workers applied for UI benefits, which would be a 1300% jump compared to April 2019.
These numbers are historically high in the region and across the state – we’ve simply never seen anything like this. While a large majority of Central Minnesota’s labor force experienced the Great Recession in 2009, including thousands that suffered layoffs and unemployment, two age groups of workers in particular are experiencing this labor market unrest for the first time —teenagers and young adults from 20 to 24 years. So far, nearly 11,000 workers under 25 years of age have filed UI Claims in Central Minnesota – these workers weren’t even in the labor force in 2009 (see Figure 1).
Since they’re often found working in the industries that have been hit hardest during the COVID-19 pandemic, young workers are making up a much larger and more persistent percentage of total claims than in past years. According to Quarterly Workforce Indicators, workers under 25 years of age account for 40% of the total workforce in the Leisure and Hospitality sector, compared to just 16.4% across the total of all industries (see Figure 2, source: Quarterly Workforce Indicators).
This has led to a much larger impact on these young workers. So far the UI applications indicate that these layoffs are temporary, but the uncertainty is also something these teenagers and young adults have not had to deal with in the labor market so far. As the economy recovers, it will be interesting to see how these youngest workers bounce back.
For more information, contact Central Minnesota Labor Market Analyst Luke Greiner at 320-308-5378 or luke.greiner@state.mn.us.
