Government jobs grew this year in Minnesota after post-pandemic lag

From mechanics to accountants, police officers to property inspectors, government job openings are plentiful as the state and Minnesota municipalities add positions while struggling to compete in the tight labor market.

Government employment has climbed by more than 10,000 jobs from a year ago to this July, with that sector seeing a higher growth rate in Minnesota than nationwide, according to state Department of Employment and Economic Development (DEED) data.

Many local governments cut staff during the pandemic as some services were pared back, said Patricia Nauman, executive director of Metro Cities.

"Now cities are trying to crawl out of that and come back and are starting to hire," she said.

Despite the growth, government agencies — namely local governments, like counties and cities — have yet to reach the staff levels they had before COVID-19.

Private sector jobs in the state reached their pre-pandemic level this February, taking longer to bounce back than the nation as a whole, given the state's particularly tight labor market. But the seasonally adjusted government employment total for July was still down from February 2020.

When the pandemic first hit "it looked like the bottom was falling out of the economy," so Dakota County officials chose to leave 50 positions vacant, county manager Matt Smith said. When they started attempting to fill the openings, they struggled to find candidates. At one point, vacancies escalated to about 150, he said.

A significant recent boost in wages has enticed more people, and shifting economic conditions might also be helping local governments hire, as the state's unemployment rate has risen slightly from an all-time low, and there have been some private-sector layoffs, said Andy Benish, the county's employee-relations director.

"About a year ago, we were having a really hard time finding people to fill [jobs]," Benish said. "We were accustomed to having jobs where we would have multiple candidates who had the skills. ... And I feel like we're probably getting closer to that again. But looking back to 2019, we're not there."

Government hiring continues to trail the private sector's post-pandemic rebound despite significant growth this year. New state data show government agencies lost 100 jobs in July, a slight dip after months of notable gains.

The state lost 400 jobs across all sectors, public and private, according to seasonally adjusted figures released Thursday. The unemployment rate ticked up to 3% and remained lower than the national rate of 3.5%. But more workers are joining the workforce, with labor force participation up one-tenth of a point to 68.5%.

Library workers, child protection staff, a transportation maintenance worker and others assembled Wednesday for new-hire training in a Dakota County conference room. Signs surrounded them championing government jobs as a chance to "be a role model" or "a protector of paradise."

Government officials in cities and counties across the state have been trumpeting similar "make a difference" messaging — along with their benefit packages — as they vie with the typically higher-paying private sector.

Short-staffing in key public-sector jobs, including nursing and corrections, has prompted the American Federation of State, County & Municipal Employees (AFSCME) to take a bus around the country promoting government work.

The tour stopped in Minneapolis last month. At a news conference and job fair, Minnesota leaders and workers made their pitch.

"If being in a line of work where you feel great coming home every single day because you've been helping out the people in your community matters to you, then we encourage you to come apply," said Minnesota House Majority Leader Jamie Long, DFL-Minneapolis.

He highlighted the state's recently negotiated wage increases as agencies try to fill a large number of jobs added in the new state budget.

While many governments are raising wages, so is the private sector. For the past two months, private-sector wage growth in the state has outpaced inflation, according to DEED. Private-sector workers' average hourly wages rose 83 cents in the month — higher than the national increase — to $36.18 in July. Data on public-sector wages was not available.

The need for workers to fill critical government positions feels bigger than ever in her career, said AFSCME Council 65 Vice President Peggy Kinzler. The Carver County social worker has spent 28 years in government and said short-staffed departments leave people waiting for key services.

For Ean Koerner, 35, the idea of serving the community was a key piece of his decision to take a job with Hennepin County, along with the benefits and hybrid work culture. He started this week as an internal content coordinator in the county's communications department, his first government job after a decade in nonprofits.

"People care about where it is they live, and they care about their neighbors," he said. "That appeals to a lot of people."