Health care expands in Minneapolis, but industry not recession-proof

Health care is the centerpiece of Minneapolis Mayor R.T. Rybak’s strategy to make the city’s economy resistant to recession. Rybak called health care “Minneapolis’ most important industry” early this month in his state of the city speech. With 45,000 employees, health care accounts for 12 percent of the city’s jobs. And it’s the fastest growing sector, with 2,300 jobs added last year and a billion dollars of investment underway among the city’s major health care employers.

Those numbers don’t suggest any slowdown locally, but an interesting new BusinessWeek article warns that health care isn’t inherently recession-proof. Demand does ebb and flow for hospital services, especially elective procedures like knee replacements and gum surgery, the article notes. The impact of a recession on health care is sometimes delayed several months, the time it takes for laid off workers’ COBRA insurance to expire.

Meanwhile, the City Council’s Health, Energy and Environment committee this week voted to enter a partnership (pdf) with the state to start a health care training and job placement program for 65 low-income and minority workers, including people with little education and employment history. Participants will start by taking a health care curriculum at Minneapolis Community and Technical College. They’ll then be evaluated and placed in more specialized training before being offered job placement services through the city’s WorkForce Centers.