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College-educated immigrants find many barriers to high-skilled jobs in the United States

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When Ermias Melka emigrated from Ethiopia to Minnesota in 1998, it meant new opportunities for his family. But he also took a big step backward professionally: Despite working as a pharmacist for a decade in Addis Ababa, he’s been able to find work in the United States only as a pharmacy tech.

Software engineer Sri Mallipudi also ran into roadblocks finding work when she immigrated to Minnesota from India three years ago. After 70 interviews and no offers, a recruiter finally told her she didn’t have enough experience with American companies and lacked a master’s degree from a university in the U.S. She ended up working at Starbucks.

Their experiences are common among college-educated immigrants in the United States. Lack of English proficiency, licensing and credentialing barriers, and extra educational requirements make it hard for some immigrants to find high-skilled jobs here — an issue sometimes called “brain waste.”

Now a bill before the Legislature would address the barriers to higher-skilled work for immigrant physicians. Sen. Alice Mann, DFL-Edina, who co-sponsored the bill, said it would put “anywhere between 250 to 300 physicians back out into the workforce that currently cannot practice” in Minnesota.

The bill would grant a limited license to some graduates of foreign medical schools to work for two years in a rural or underserved urban community in the state. If the doctor is in good standing after two years, they would be eligible for an unrestricted license to practice in Minnesota.

The two-year period of supervised practice is important, said Mann. “There are cultural aspects to how to practice medicine, and we want our physicians to be able to learn that and incorporate that into their practice,” she said.

Mann emigrated from Brazil to the U.S. with her family when she was a child. For years her mother worked three jobs to support the family while her father, a physician in Brazil, went through hurdles to practice medicine here. When she entered the Legislature in 2019, she came across several physicians who had a similar experience.

“They were saying, ‘I have lived here for many years, I can’t practice medicine and I was a doctor from wherever I came from,'” Mann said.

According to Mann, most states in the U.S. have significant barriers for physicians who completed their training abroad to practice medicine. At the same time, the number of residency slots isn’t keeping up with demand. Her staff sought to tackle both issues in bill: Immigrant physicians wouldn’t have to go through residency again, opening those slots for people who hadn’t received training yet.

“I just don’t see, personally, a downside to getting people to do what they’ve been trained to do and they’re good at, especially when we have a workforce shortage in health care,” Mann said.

A 2021 study by the Migration Policy Institute, a Washington, D.C.-based think tank, estimated that underuse of immigrant skills costs the U.S. economy $40 billion a year, including $10 billion in taxes to federal, state and local governments. And it’s become a pressing issue in fields like health care, which faces a shortage of doctors and nurses.

Mallipudi worked as a software engineer for Broadcom in Andhra Pradesh, India, for almost four years, making $50 to $60 an hour, before moving to Minnesota to join her new husband in 2021. She expected to have a few months off while waiting for her work authorization before landing a comparable job in the U.S.

But after a series of job rejections, Mallipudi felt like she had two options: get a master’s degree or work low-skilled jobs while changing her career. She started a seasonal job at a Target Starbucks in October 2022 and by the following January was promoted to full-time, with benefits such as education assistance.

Mallipudi completed a full stack development boot camp at the University of Minnesota in 2023 and is now looking for a job as a junior developer to gain experience before applying for more senior jobs.

Melka went into pharmacy because he was interested in learning about medications and how people are treated. He graduated in 1987 with a master’s degree and started working in a hospital pharmacy.

“Pharmacy is more like life chemistry,” he said. “You can see all the medication people are treated with and the chemistry applied on that, so I’m so interested in that.”

After arriving in the U.S., Melka passed the Foreign Pharmacy Graduate Equivalency Examination in 2005. But he flunked the qualifying English exam at least a dozen times, which prevented him from working as a full-fledged pharmacist. By then, he needed to take the foreign pharmacy exam all over again.

He didn’t want to return to school or retake the exams, so he continued as a pharmacy technician, a job that requires only a high school degree or GED. But it meant thousands of dollars in lost wages; the mean annual wage for pharmacy technicians in the U.S. is $40,260, while the mean annual wage for pharmacists is $129,410, according to the U.S. Bureau of Labor Statistics.

Melka and members of his family supported each other during the transition to the U.S., he said. Both he and his wife worked while raising their children, one in the morning and the other in the afternoon. They were able to buy a house, cars and other things together.

“The children are so good, they’re helping us too,” he said. “They’re helping each other, so we grow together.”



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New employer-led nonprofit hopes to lure workers to Duluth with housing investments

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NHP is seeking other employers to join their efforts, and is looking to invest in both multifamily and single family projects in northeast Minnesota and northwest Wisconsin.

The availability of new apartments allows aging single-family homeowners to sell and downsize, said David Gaddie, a longtime bank executive and chairman of Essentia’s board.

And that house “can be sold to a young family that needs housing, and they can move on up the ladder,” he said.

Developments chosen for loans won’t be targeted toward employees sought by a specific employer. The nonprofit is considering loans to projects in Superior, Wis., and Coleraine, Minn., and expects to offer investments between $2 million and $5 million.

Herman said Essentia has long invested in affordable housing, including a 72-unit project for seniors near its former downtown hospital. Without housing, “good health is almost impossible,” he said, and he’s hopeful other employers will consider housing investments that might yield lower monetary returns, “but a great return” on employee recruits.

The nonprofit’s board includes Gaddie, Herman, former Wells Fargo executive Phil Rolle, interim (and former) Maurice’s CEO George Goldfarb, and former Allete CEO Alan Hodnik.



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Minnesota Public Utilities Commission approves rate increase for Minnesota Power electric bills in Duluth, Iron Range

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This is the second rate increase granted to Minnesota Power in two years. In January 2023, the PUC granted a 9.5% increase. That was also much smaller than what the company wanted, though higher than what some consumer advocates asked for.

More than 650 people wrote to the PUC about the rate increase, most in opposition. Many were dated prior to or just after the settlement was announced publicly. Matthew Laveau of Wrenshall said “these added costs are not sustainable to their customers.”

Gretchen Matuszak of Esko wrote she is retired and can hardly keep up with her electric bill as it is now. “You sure make it tough for us old timers!” She wrote. “Give us a break!”

Allete CEO Bethany Owen during a Minnesota Public Utilities Commission meeting in St. Paul, Minn., on Thursday May 9, 2024. ] RENEE JONES SCHNEIDER • renee.jones@startribune.com (Renée Jones Schneider/The Minnesota Star Tribune)

Minnesota Power has about 150,000 customers across northeastern Minnesota. It serves energy-hungry iron mines, pipelines and the paper industry, all of which make up nearly 70% of the utility’s energy sales.

The company has the lowest monthly bills for the average residential customer of Minnesota’s three investor-owned utilities, and its electric rates for those customers are below the national average, according to 2022 data, the latest reported by the PUC. Its prices for commercial and industrial customers are higher than neighboring states, however, and 95% of the national average.

The utility has shifted its power mix from 95% coal in 2005 to nearly 60% renewable energy now as it works to meet a state law requiring a carbon-free electric grid by 2040.



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Will Minnesota’s long-blue Iron Range turn red in November?

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“You could have helped us last year, you chose not to,” Skraba said.

Skraba was once a Democrat, like many who live in his district and on the Iron Range. But times have changed, he said.

“I think a lot of the Iron Range people are waking up going, ‘I identify more with the other side now,’” Skraba said. “For me, the Democrats were doing things that weren’t germane to rural Minnesota anymore. They were getting more metro, and rural Minnesotans are like, ‘Hey, what about us?’”

Droba said he still believes the district can swing either way. If it’s truly become more conservative, he said a higher-turnout presidential election will show it.

“I really believe that if the winds of change are turning and we are becoming more conservative, this will be the election that really shows that because it is the first presidential year after the redistricting,” Droba said.



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