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Writer's pictureRadar Talent Solutions

Unemployment Changes Impacting Minnesota School Districts: What We’re Really Seeing

Updated: Nov 14



In 2023, Minnesota became the only state in the country to extend unemployment benefits to non-licensed hourly school employees like paraprofessionals, bus drivers, custodians, and nutrition staff, allowing them to apply for benefits between school terms. The goal? Improve recruitment and retention. 


However, Radar’s work with school districts across the state shows that it’s doing the opposite. Instead of encouraging staff to stay, it provides a disincentive for working during the summer. This often results in employees not returning for the new school year, forcing schools into a bind. In some cases, we've seen schools lose up to 30 staff members just a week before the school year starts.


The financial impact is also hitting districts hard. While the state set aside $135 million to help cover unemployment costs, this will likely be exhausted by next summer, leaving districts facing rising insurance premiums. Some are attempting to create 12-month roles for their staff and expand their summer programming accordingly.


At a recent presentation by the Minnesota State Unemployment Insurance to the Minnesota Association of School Personnel Administrators, the discussion was refreshingly candid. There were moments when even the agency responsible for implementing the policies had difficulty providing clear explanations. When asked if these unemployment changes have improved recruitment or retention, the collective response from the room was a sigh. Most districts shared stories about how the policy is actually making retention worse.


I would encourage the Minnesota State Legislature to revisit this policy change and evaluate whether it had the intended effects. If you’d like to dive deeper into this topic or hear insights from those directly impacted, I’m happy to connect.


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