Colleges power area economy

Oct. 3—Throughout her college career in Mankato, Olivia Lawrence has worked at Pub 500, one of an army of students who fill jobs and boost spending power that benefits area businesses.

Pub 500 owner Tom Frederick said students are a boon to the city.

"We have a great summer with the patio, but in the fall when students return, their parents take them out to eat one last time and there are the music events and sports. There's a fun vibrancy. Mankato's a great town," he said.

For Steve Wegman, owner of Weggy's on Campus and several other food and bar businesses in Mankato, students are his lifeblood.

"Probably 95% of our employees are in their 20s and a vast majority are college students. Probably 90% go to MSU in some capacity.

"You're lucky if you get them as freshmen or sophomores and keep them until they graduate," Wegman said.

For students like Lawrence, the variety of jobs in town, many in the entertainment sector, offer a flexible work schedule that works with their studies, sports and social activities.

Lawrence, who will graduate next semester in elementary education, said working at the same place the past three years also has given her chances for advancement.

"I started as a server at 19 and then worked up to bartending, and now I bartend, waitress and manage. I'm a manager on duty during the day or night and handle situations that come up."

Students are the majority of the staff at Pub 500. She said many go home for the summer their freshman year but after that many stay in Mankato year-round.

Lawrence said the owners and managers at Pub 500 make it a rewarding place to work that keeps employees coming back. "They put customers and employees first."

MSU enrollment strong

David Jones, vice president of student affairs and enrollment management at MSU, said COVID was a blow to enrollment at higher education institutions across the county.

"That continues to be the condition in most places, but what we're seeing locally is different. We're seeing new student interest growing above 2020 and 2021 levels. Most of that is driven by new student interest — high school graduates wanting to go to our institution, and we're seeing pretty steady transfer numbers, which is a little of a surprise," Jones said.

Even with the pandemic, enrollment at MSU has grown slightly each year in recent years, with 14,546 students in 2021. "It's held remarkably steady over the years."

He said pressure on enrollments at MSU and other universities and colleges will continue as there are smaller high school graduation classes coming up, and more high school grads are choosing out-of-state colleges.

Jones said international student enrollment at MSU, which has always been very strong compared to other universities, is exploding.

"We're seeing a 400% increase in interest from international students, which is massive." He said some of that is due to a backlog as there were limits on visas during the pandemic and because of the war in Ukraine and disruptions in Europe that reduce opportunities for students to study in Europe.

In 2020 there were 813 undergraduate international students at MSU, with the number rising to 1,937 in fall of 2021. While he didn't have final numbers at the time of this interview, Jones expected more than 4,000 international students could be on campus this fall.

While international students provide a huge economic boost to the local economy, their educational visas mean they can't hold jobs outside of on-campus jobs and some internships with private businesses.

While the campus was much quieter during the height of the pandemic as students took online classes, the number of students now doing online learning has dropped significantly.

"Clearly students want to be in person. Our online only from last year to this year is down 21%.

"It's a huge compliment to the city of Mankato and Greater Mankato that students are coming to our campus. They feel very confident about the safety and security and the entertainment options in the area. The partnership between the city and university is very important," Jones said.

Career counseling

The university has robust career counseling services to help students pursue jobs while in school and prepare for the jobs they want after graduating.

Pam Weller, director of the university's Career Development Center, said they work with students of all majors across their entire educational journey at MSU and offer a level of service for alumni as well.

"We provide job listings and assistance for current students searching for on-and-off campus jobs; career counseling and resources for students who are in the process of choosing or changing their major; and programs for students seeking internships, post-graduation employment, and/or graduate school planning," she said.

With the ongoing shortage of workers, Weller said students have more options now.

"I do believe that changes the way that they approach job opportunities. With the job market weighing heavily on the side of the job seeker, students and graduates are in a more powerful place. Candidates are less inclined to accept a job or employer that does not check all of the boxes," she said.

"Things like flexibility in hours and work location, work/life balance, mental health, professional development opportunities, employer diversity and community involvement are a greater part of the decision-making process when looking for a job."

Weller said employers are looking for new and creative ways to attract employees.

"Obviously, wages have increased, particularly for part-time hourly jobs. Employers are doing things like simplifying the hiring process, offering signing and referral bonuses, allowing people to work completely remotely and/or make their own schedule, providing tuition reimbursement, instituting mentoring programs, and providing perks like catered lunches and time off for volunteer work.

"These things can help, but there is no magic solution. With the unemployment rate being historically low, unfortunately, there are simply more jobs than there are people to fill them," Weller said.

Rising costs

Wegman said the start of colleges in the early fall is always exciting.

"We get 20,000 students plus parents and sporting events. We are excited to get the school year back up and running — colleges coming back and high schools coming back."

While he's grateful for the employee pool and spending students bring, Wegman is dealing with higher costs for labor, food and everything else his businesses need.

"You're paying people quite a bit more now and the costs of food — hamburgers, buns — keeps going up. You look at the numbers a lot closer and more often than you did in the past. It all creeps up on you. We might sell a lot, but we're not making a lot."

Like other restaurants and food shops he's reluctant to raise prices too much, but knows adjustments are needed. "A McDonalds kids' meal is $7. It's crazy.

"Some products are always volatile — meat, fruits, eggs — but now you wonder if prices will go back down or not."

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