SAINT PAUL, Minn. (KELO.com) — Minnesota business services firms expect mostly unchanged conditions in the coming year.
That’s according to a survey of Minnesota businesses service firms conducted by the Minnesota Department of Employment and Economic Development and the Federal Reserve Bank in Minneapolis.
Higher costs in goods, including food and energy, caused largely by the COVID-19 pandemic and the Russian invasion of Ukraine, has resulted in most respondents anticipating more inflation in the future.
Read more details below in the news release from MDEED.
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Minnesota business services firms expect mostly unchanged conditions in the coming year, according to a survey of Minnesota businesses service firms conducted by the Minnesota Department of Employment and Economic Development (DEED) and the Federal Reserve Bank in Minneapolis.
Higher costs in goods, including food and energy, caused largely by the COVID-19 pandemic and the Russian invasion of Ukraine, has resulted in most respondents anticipating more inflation in the future.
Eighty-five percent of respondents anticipate a rise in inflation while 61% expect unchanged levels of employment and 43% expect a decrease in consumer spending and corporate profits. Labor availability stood out as a particular concern among respondents with 62% expecting unchanged levels and 33% anticipating a decline.
“The survey shows what I think many of us have come to recognize – that inflation and labor availability are major concerns going forward,” said DEED Commissioner Steve Grove. “To help businesses find workers and connect Minnesotans to higher-paying jobs this summer, we are travelling around the state on our ‘Summer of Jobs’ campaign to connect workers with employment available right now in our state.”
As part of this all-out sprint to help jobseekers and employers connect, Commissioner Grove will head to Owatonna this week to highlight opportunities for connecting with untapped labor pools.
In the previous year Minnesota firms reported unchanged conditions, with 64% reporting unchanged employment. Productivity was also reported to be largely unchanged with close to 60% indicating no changes. For labor availability 60% reported unchanged conditions while 37% indicated a decrease with only 4% reporting an increase in availability of workers.
A new question inquired about telework. Twenty-two percent of respondents indicated that they are not considering or implementing telework, almost the same percentage as those that responded they are for some employees.
DEED and the Federal Reserve Bank of Minneapolis have conducted this survey annually since 2006. You can see a detailed report of the 2022 Survey of Minnesota Business Services Firms on the DEED website.
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