[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6363845,"mediaKeyId","2165620-b863460eb4111fdc6d3968feaf8f9ebb","parentId",2165620,"title","DEED outlines paid‑leave rollout, workforce grants and UI trends; committee presses for fraud and trust‑fund details","audioSeconds",891,"startMs",5446000,"endMs",6337000,"viewUrl","/Search/View?dp=1&key=2165620-b863460eb4111fdc6d3968feaf8f9ebb&start=5446&end=6337","thumbnailUrl","https://assets.pipeline.soar.com/2165620-b863460eb4111fdc6d3968feaf8f9ebb/thumbnail_5446000.jpg","articleUrl","/articles/6363845/Minnesota/DEED-outlines-paidleave-rollout-workforce-grants-and-UI-trends-committee-presses-for-fraud-and-trustfund-details","mediaUrl","https://secure.pipeline.soar.com/6363845-73da5d293a297117826b152b713c2e66/orig.mp4?Expires=1771146338&Signature=InY4FaCItenHwmJasUJbHcyMkVnsNOJIDD0KK-xfqazVYJ2nAv7SCvcShDxPLv6hHdADWsUqjjLyxwY0LUpGWtgDFIOMjtfY5E2sT438c3otHoOtyVHKqqgNAjIfiOMchMyNUZ4hSsfcR4Ryx6CxTfWQMVLRSOgfoDvei9A-ZqEH4D2-2JAmrwSsfkI9c4bHn6ohFA4MJu5eoP76SLNvCzeg-hHha3Naq6DrzMSQIdu9ulA5vDi~t6nMwl1co3MRhFHcIhCPHMhan9xDi7wIMFgL9Yzr-R1P0pnymeUe0W7~dxmVitRXE3NzUZX7NZgNgm9x9l~-oSgaQOflB9Yo9w__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota Senate Media Services","date","2025-01-29T00:00:00Z","article","Deputy commissioners and DEED leaders briefed the Senate Jobs and Economic Development Committee on Jan. 29 about the department’s work rolling out paid family and medical leave, workforce grants and unemployment‑insurance (UI) program trends.

Deputy Commissioner Evan Rowe said the paid‑leave program passed by the 2023 Legislature is proceeding through rulemaking and technical development. He said DEED has contracted a vendor (Nava PBC, named in testimony) to build the benefit‑payment and integrity systems and that wage‑detail reporting was launched in October to simplify employer registration for many employers by leveraging existing unemployment‑insurance wage reports. He said DEED will phase in hiring and customer‑service capacity through 2025 ahead of the program’s effective date.

Rowe and other DEED deputies described workforce grants funded in the 2023 budget: Pathways to Prosperity, Women’s Economic Security Act grants, Southeast Asian workforce grants, Getting to Work (greater‑Minnesota transportation and vehicle repair support), adult and youth support services, Drive for 5 (training in tech, health care, construction/trades, education and manufacturing), and the youth‑at‑work and youth‑build initiatives. Deputy Commissioner Mark Majors highlighted outcomes reported to Sept. 30, 2024: about 44,100 youth enrolled across youth programs, roughly 25,100 engaged in training and an average exit wage near $22/hour for program completers; Majors also described the Office of New Americans and its role in connecting immigrant workers to jobs.

Senators raised program‑integrity and UI trust‑fund questions. Commissioner Matt Berlek and deputies said DEED applies tailored internal controls depending on program type: for grants this can include requiring IRS Form 990s, project budgets that align to legislative language, audits, contract monitoring, and coordination with the Office of the Legislative Auditor and other state partners. Berlek said the agency balances speedy delivery with stewardship and noted ongoing internal audits and policy updates.

On UI trends, Deputy Commissioner Rowe said Minnesota has experienced national‑scale increases in benefit payments since 2022 while UI tax collections have not grown as strongly, in part because of pandemic‑era mechanics such as the employer experience‑rate freeze that changed how employer charges were reflected. Rowe said Minnesota performs well on federal payment‑accuracy measures and has comparatively low fraud rates per Department of Labor reviews, but senators requested additional, more granular data. Senator Pratt said the UI trust fund balance declined about 28% in the prior 12 months and 39% over two years and requested a short, committee‑level briefing with detailed causes and policy options before the February forecast.

Committee members also asked about fraud vectors and specific constituent cases. DEED described multiple fraud typologies (cybercrime/data theft creating false claims; applicants providing false information) and described the agency’s technical and investigative tools — analytics, data‑matching, employer fact‑finding, and pursuit of investigations and appeals as needed. Berlek and deputies promised follow‑up reports and additional data to the committee on UI payments, fraud investigations and program controls.","mediaType","Video","parentTitle","Committee on Jobs and Economic Development - 01/29/25","oneSentenceSummary","Deputy commissioners and DEED leaders updated the committee on paid family and medical leave rollout, workforce grant competitions and unemployment‑insurance trends; senators pressed DEED on fraud prevention and a recent decline in the UI trust fund balance.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6363849,"DEED: business expansions and state grants drove investment in 2024; agency highlights CHIPS, MIF/JCF and small‑business programs",582,3338000,3920000,"/Search/View?dp=1&key=2165620-b863460eb4111fdc6d3968feaf8f9ebb&start=3338&end=3920","https://assets.pipeline.soar.com/2165620-b863460eb4111fdc6d3968feaf8f9ebb/thumbnail_3338000.jpg","/articles/6363849/Minnesota/DEED-business-expansions-and-state-grants-drove-investment-in-2024-agency-highlights-CHIPS-MIFJCF-and-smallbusiness-programs","https://secure.pipeline.soar.com/6363849-32d62fab46d7a5f51582a3181a3aab22/orig.mp4?Expires=1771146338&Signature=Hq74HI8ADRdjfPj3mi0A6GzEyP9ey8RW8~CD1LzDLipZdlDgzSapegw8eYq9dHbSZUkPW-QvCss9USIq8QIm7uL7EJcq73LwZ-zxx0HPrQhOW9Nr1EEiqgDCk7EQhqAe0ISKUBUfnL8Zc-CrZIU2mHPdlw6EIBW-ctptfGyPkJteIgkMh-V1W1qAz1OGUOxbQsnMgDSU35WvdtJef4gMnadRmUtA85WVDtBQ0mJwPc6boGA9SbHlvwY4LRuMAaAR-LFL7lkXx8o00MXeqijGYwBferolymaeNWNdxb0e2IWefCkOX5dTkdtC16-5yoGwBVBF5neY0zeuZWPZ0cgl2g__&Key-Pair-Id=KUT5TJCACFTXG","Matt Berlek, commissioner of the Department of Employment and Economic Development, told the Senate Jobs and Economic Development Committee that Minnesota saw notable private investment and business expansions in 2024 and that the agency has been implementing major 2023 budget initiatives.

Berlek said the state recorded 113 business expansions in 2024 and cited roughly $12 billion in outside investment connected with DEED‑assisted projects; he also said the state tracked about 2,000 jobs created in 2024 that were tied to agency incentives and that DEED had already reached roughly 1,800 jobs in the first half of fiscal 2025.

Commissioner Berlek and Government Relations Director Devin Bowdre summarized key programs DEED is managing or deploying:

• Minnesota Forward Fund (CHIPS/DOD matching): DEED reported allocations of state matching funds intended to leverage federal CHIPS and Department of Defense manufacturing investments; Berlek said awards to date total roughly $124 million in state grants, paired with larger federal and private matches.
• Minnesota Investment Fund (MIF) and Job Creation Fund (JCF): DEED said the MIF and JCF have supported large projects, including a solar‑manufacturing project (identified in the DEED presentation as “Helene”), a medical‑manufacturing expansion (Phillips Image Guided Therapy) and international investments recognized by the governor (Sofidel).
• Small‑business and innovation support: DEED summarized the Emerging Entrepreneur loan program, the Angel Tax Credit, Launch Minnesota grants (up to $35,000), Promise Act grants and loans, and a state small‑business credit initiative funded through ARPA allocations.
• Childcare and small‑business technical assistance: DEED reported investments to increase child‑care slots (including allocations reserved for greater Minnesota) and funding for Small Business Development Centers and community nonprofits that provide tailored technical assistance.

Berlek emphasized overall labor‑market strength — six consecutive months of net job growth and a 3.3% unemployment rate — while noting persistent disparities in wages and outcomes for workers of color. He said Minnesota ranks highly in national business‑environment indices and that the agency’s work aims to sustain private investment and recruit/moderate expansions.

Committee members asked for details on fraud prevention and program integrity; DEED responded that agency grants and loans follow internal‑control procedures, audits, IRS filings (e.g., Form 990 for nonprofits) and Department of Administration policy, and that DEED reviews budgets and project plans before disbursing funds. Berlek said the agency balances speedy delivery of funds with program integrity and cited internal audits and coordination with the Office of the Legislative Auditor and other partners.

DEED also highlighted the department’s role in deploying Explore Minnesota for Business funding and other outreach tools to help attract employers and workers. Berlek asked the committee to consider how to keep Minnesota “sticky” for graduates and young professionals as the committee deliberates workforce and business attraction policies.","The Minnesota Department of Employment and Economic Development reported multiple private investments and program rollouts, including CHIPS‑related matching funds, the Minnesota Investment Fund and Job Creation Fund activity, small‑business loans and childcare slot grants; DEED said early 2025 results show continued expansions.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6363854,"State demographer: Minnesota workforce growth slowed by aging and low birth rates; international migration now key source of workers",3239,46000,3285000,"/Search/View?dp=1&key=2165620-b863460eb4111fdc6d3968feaf8f9ebb&start=46&end=3285","https://assets.pipeline.soar.com/2165620-b863460eb4111fdc6d3968feaf8f9ebb/thumbnail_46000.jpg","/articles/6363854/Minnesota/State-demographer-Minnesota-workforce-growth-slowed-by-aging-and-low-birth-rates-international-migration-now-key-source-of-workers","https://secure.pipeline.soar.com/6363854-22f71f6163a29045a0c2ec7803814a68/orig.mp4?Expires=1771146338&Signature=PVKrBJ~cjWvjRcMwlcsw30bSCBPyLoK20-9lhNas3BkXupIUN7rjb~odlaCb8VEuihUD9B9VPK0xDdD5mzy5ApH3rXZ7gphfq7Af-b7R5XsLHjpBWtmHpGv-MybWKJbJjoIbQ9z1pM48seePFRQ-aXZYllqHLct7ZJQIBw2hgpWE9tUDBa0kTf9N17lByA9EsoA5mXJ5Z3cgNvT48rw0oGH~tTG2YtH0jjt94Odj4~u~qIEnYsVjJKHG~9Lz2EVdYPvf4ocFzzt6JAchco-5rJwy4RlU-sKUsAtlyVFb89im7JXEWOIrh4x2JXcFqu~TALyzA-T5~4fWTtM31aPaig__&Key-Pair-Id=KUT5TJCACFTXG","Susan Brower, the state demographer, told the Senate Jobs and Economic Development Committee on Jan. 29 that Minnesota’s labor force has grown only slowly this decade, driven mainly by population aging and lower birth rates.

Brower said about 58% of the large baby‑boom cohort has moved into retirement and that births have declined, producing “very, very slow growth” in workers unless migration increases. “Without the contribution of migration from other states or from other countries, we can expect this very, very slow growth to continue into the future,” Brower said.

Brower placed recent changes in longer historical context. Teen labor‑force participation fell from about 61% in 2000 to roughly 50% in 2010 and was about 53% in 2023. Participation among people in their mid‑ to late‑20s rose; Brower said labor‑force participation was about 90.5% for people aged 25 to 29 in 2023. Participation by older workers also rose: she said participation for 60‑to‑64‑year‑olds increased from about 55% in 2010 to 66% in 2023.

Those age‑by‑age changes, Brower told senators, have been gradual but steady and suggest that most of the remaining potential to expand the workforce comes from either younger people entering earlier or attracting workers from outside Minnesota. “If we are to continue to see our workforce grow into the future, it's likely going to have to rely on migration from outside of Minnesota’s borders,” she said.

Brower reviewed migration patterns through 2024. She said Minnesota typically records a small net domestic outflow to other states — common for Midwestern states — while international migration has been a continuing source of net population growth. “On net more people move to Minnesota than move away. But most of that comes from international immigration,” she said, and added the Census Bureau’s updated methodology recently captured more international growth than prior estimates.

Committee members pressed Brower on who is moving and why. Brower and senators discussed that the largest losses by age are among teenagers and people in their early 20s — a broadly national pattern tied to college attendance and other early‑life moves. She also said older adults (including so‑called snowbirds) do move out in some years but at lower volumes than the younger losses.

Brower presented estimated counts from the American Community Survey and other sources: about 3.1 million people were counted in the labor force (16 and older) as of December 2024; in the 16–64 cohort she cited 634,000 people not in the workforce (using 2023 ACS characteristics), of whom roughly 184,000 were enrolled in high school or post‑secondary education, about 67,100 were estimated to have retired before age 65, and the remainder were mainly people with caregiving responsibilities, disabilities, health issues or other reasons for not participating.

Committee members and Brower discussed policy implications. Several senators said they want to keep more graduates and young professionals in state and urged closer attention to higher‑education retention, workforce training and employer attraction. Brower emphasized that migration, housing, jobs and family ties are the leading reasons people move; academic research on tax‑driven migration is mixed and tends to show tax effects concentrated among very high‑net‑worth households, she said.

Brower also reviewed racial and ethnic trends in the workforce. She said workers of color make up about 23% of Minnesota’s labor force and that unemployment gaps narrowed since the Great Recession: for example, she cited roughly 5.5% unemployment for Black or African American workers and 11.2% for Native workers in the latest ACS figures she showed. She and senators discussed the value of disaggregated data (by detailed racial/ethnic subgroups and by geography) to target programs and supports more precisely.

The presentation and subsequent questions underscored the committee’s view that Minnesota’s labor shortage is structural and that migration — particularly international migration — and targeted workforce development will be central to future labor‑force growth.","State Demographer Susan Brower told the Senate Jobs and Economic Development Committee that Minnesota's labor force is growing very slowly because of population aging and falling birth rates, and that international migration has become the primary source of net labor-force growth in recent years.","actionData","errors"]

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DEED outlines paid‑leave rollout, workforce grants and UI trends; committee presses for fraud and trust‑fund details

DEED: business expansions and state grants drove investment in 2024; agency highlights CHIPS, MIF/JCF and small‑business programs

State demographer: Minnesota workforce growth slowed by aging and low birth rates; international migration now key source of workers