Minnesota's job market is amazing, unless you're Black

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Minnesota recently achieved an eye-popping milestone: In June and July it logged the lowest unemployment rate of any state in American history — an astounding 1.8%.

However, a deeper look into the data shows a troubling trend: Minnesota's Black unemployment rate actually increased for three months before dipping slightly in July to 7.3%, but remains three times higher than the white unemployment rate. Worse, the Black labor force participation rate is going up — which means Black Minnesotans want to work, but aren't finding jobs as fast as their white counterparts.

Racial disparities have long held Minnesota's economic growth back. The Department of Employment and Economic Development (DEED) released a report on Tuesday that shares an updated analysis of the Black labor market in our state.

The report's trends are nuanced and some show notable and significant improvement in many metrics over the last decade. However, the disparities it highlights are not new. And any serious look at the data brings a clear conclusion: Policymakers and the private sector need to undertake urgent, transformative action to elevate economic opportunities for Black Minnesotans and secure the state's economic growth and prosperity.

Much of the data may look familiar, but the depth of the disparities may surprise you. Black and African American Minnesotans have shockingly uneven educational attainment: Minnesota has the third-highest percentage of Black or African American adults 25 years and older with less than a high school diploma in the nation, at 18.3%. Income disparities for Black people in Minnesota are severe: At $40,785, the median income for Black or African American households in Minnesota is about $35,000 lower than that of white households. Decades of economic and racial exclusion have left Black Minnesotans more susceptible to economic downturns: During the height of the pandemic, more than two-thirds of Black or African American workers in Minnesota filed an initial unemployment claim, compared with about one-third of white workers.

As three Black leaders who are responsible for organizations that address these disparities, this new data underscores our urgency for change. Deep, systemic racism in Minnesota has gone on long enough — we must try different things if we're going to get different results.

At DEED, we are accelerating our work to address disparities around five racial equity commitments to reduce systemic barriers to equitable growth. That includes driving more funding to historically underserved populations, reforming government programs that have left out Black workers and business owners for too long, and launching concerted outreach and engagement programs for Black workers and Black-owned businesses across the state. Last month, Gov. Tim Walz released a report created by our Council on Economic Expansion that envisions an inclusive, equitable economy that works for everyone. It's rich with new ideas to address racial inequality in our economy.

At the Department of Education, we're focused on the upstream factors that help Black Minnesotans thrive by improving successful outcomes for all Minnesota students, regardless of race or ZIP code. Among our many initiatives, we are working to expand teacher diversity by recruiting, developing and retaining educators of color, so Black students and others can see themselves reflected in their classroom leadership. We're also addressing discipline disparities which disproportionally impact our Black students. This keeps students in the classroom, reduces suspension and expulsions, and keeps students on the path to success.

At the Center for Economic Inclusion, our Racial Equity Dividends Report scores participating Minnesota companies on the leading standards to advance anti-racism, inclusion and belonging in seven categories, including: leadership; hiring, culture, retention and advancement; procurement; products and services; philanthropy and investments, and public policy. By understanding how inclusive our business climate is, we can build workplaces that work for Black Minnesotans and ultimately increase Minnesota's economic stability and prosperity for everyone. The center is also investing in growing the number of Black Minnesotans in jobs paying family sustaining wages by investing directly in Black-owned businesses and the ability for Black businesses owners to build wealth.

Black Minnesotans deserve better. We hope this updated analysis of the disparities in our economy guides cross-sector leaders toward new solutions for Minnesota's economic future — one in which all Minnesotans can thrive.

Tawanna Black is founder and CEO of the Center for Economic Inclusion. Stephanie Burrage is deputy commissioner of the Minnesota Department of Education. Marc Majors is deputy commissioner for workforce development at the Minnesota Department of Employment and Economic Development.