Business and Economic News

Job market jitters real for some mid-career Minnesotans and recent grads

A man sits at a cafe counter
Michael Deneen works on job applications at Fixx Coffee in Columbia Heights on Thursday. He guesses he has applied to over 300 positions since being laid off from his IT job earlier this year.
Ben Hovland | MPR News

It seemed like companies couldn’t hire information technology analysts fast enough in 2014 when Michael Deneen began his IT career. Job counts nationally soared in the 2010s and early 2020s, but then the market flattened and a profession that looked like it might grow uninterrupted started shedding jobs

Laid off twice this year from Minnesota IT jobs, Deneen said he’s found it hard to snag the next gig. “Before I could have three, four offers lined up and would have to choose between them,” the Columbia Heights man said. “It’s like I’m struggling to even get a foot in the door in places that I’m more than qualified for.”

Even with the state’s relatively low 3.5 percent unemployment rate, some mid-career Minnesotans and those just coming out of college are seeing a job market now that worries them. Recent layoffs at Cargill in the Twin Cities and last week’s announcement that Arctic Cat, the Minnesota snowmobile maker, will shutter its manufacturing operations next year in Thief River Falls and St. Cloud, have added to the anxiety.

Analysts say Minnesota’s job market remains robust, but for some there’s a skills matchup problem as some sectors grow while others flatten or decline.

“I’m not gonna lie, it’s been hard,” Deneen said of finding the next IT job. “I’ve had a lot of self-doubt now, like questioning is this really an industry I am good at? Is this something I should even be in anymore? I’m also 40. It’s like, I can’t really switch careers at this point.”

‘Shouldn't be this way’

Health care, government, leisure and hospitality and transportation are among the Minnesota sectors that continue to show strong job growth, according to state data. Other industries are growing slower, including construction and manufacturing. 

“We’ve heard from some folks that maybe it has taken a little longer than what they remember in the past if they were previously unemployed. Some individuals don’t say that at all,” said Sara Garbe, workforce development supervisor at the Minnesota Department of Employment and Economic Development.

“November and reaching December, we certainly see a slowdown of hiring and folks may mention things like that they’ve heard from recruiters that maybe a decision won’t be made until after the holidays or after the first or the last quarter of the year,” added Garbe, whose staff works with new job seekers and those in mid-career.

For recent college grads who haven’t landed work, the holiday season can bring its own pressures.

Raina Hofstede, 22, studied English at Harvard University. Since graduating in May and coming back to Minnesota, she said job prospects have been nearly nonexistent. 

“I feel kind of directionless in the time period that I’m waiting,” said Hofstede, who grew up in Coon Rapids. “I feel like I really want to plan. I’m at a point where, like, I’d love to get things moving.”

She’s applied to post-undergrad internships and career-advancing work. She’s looking into publishing, creative writing spaces and museums and hopes a stint working in comedy clubs while at Harvard might intrigue an employer.

The search and the uncertainty around it is a grind, she acknowledged.

“I think, as time goes on, and this feels sad, but I think as time goes on, my belief in myself slowly drops a little bit more with more rejections, and so I feel like I’ll be applying to less and less competitive things as I move forward,” Hofstede said. '

A man walks out a cafe door
Michael Deneen walks out of Fixx Coffee in Columbia Heights after working on job applications on Thursday.
Ben Hovland | MPR News

Minnesota showed strong steady job growth coming out of the Great Recession in 2009, reaching nearly 3 million jobs by February 2020. The COVID-19 pandemic torpedoed that growth — the state lost more than 400,000 jobs, nearly 14 percent of its employment, in the span of a few months. Job counts didn’t return permanently to pre-pandemic levels until September last year. 

The current state and national unemployment rates are relatively low, although they have ticked up over the past year. Minnesota’s unemployment rate is lower than the U.S. unemployment rate at 4.2 percent. Based on the most recent data, Minnesota has six unemployed people for every 10 job openings where nationally there are nine unemployed people for every 10 openings.

Knowing that doesn’t make it easier for those looking for work, waiting for answers from prospective employers.

“It just kind of feels like they have no respect for a candidate or their time, or them as a person,” Deneen said of the current market. “It’s an entire game, and it shouldn’t be this way.”

‘A little community’

Garbe said technology is transforming job searches in ways that may make landing work more challenging for some in mid-career or just starting out. Companies are using automated systems or in some cases artificial intelligence systems to screen applicants before a human gets to them.

She encourages job seekers to reach out to one of DEED’s more than 50 CareerForce offices across the state where analysts can review resumes or cover letters with job seekers and offer help with writing and strategy. They can also connect people to needed training or certifications.

Garbe also suggests reflecting on what you’ve accomplished to boost your self-confidence if you get overwhelmed. 

Social media has become a resource for job seekers as they look. Groups on Reddit like r/StudentJobSearch have become a space for venting and advice with conversations about job searching and applications. LinkedIn is also seeing similar support groups, including two Deneen is in that focus on networking and project management. 

Hofstede said she’s found solace leaning on those around her who are going through these same experiences. She and a group of new graduates meet at their public library to sift through job postings and work on cover letters and resumes together. 

“Something of a little community of people who are unemployed and looking for jobs, and I like having the friends support,” she said. “It is harder to go through something uncertain like this alone.”