Bridging the Opportunity Gap: The Evolution and Uncertain Future of Minneapolis’ Step Up Program

Main Facts: A Pipeline in Peril

In the landscape of Minneapolis’ economic development, few initiatives have been as heralded as "Step Up." Launched over two decades ago, the program was designed to be more than a summer job placement service; it was envisioned as a bridge connecting the untapped potential of the city’s marginalized youth with the corporate engines of the Twin Cities. Today, that bridge is facing significant structural strain.

Step Up serves Minneapolis teenagers from lower-income households, many of whom are students of color, come from single-parent families, or lack the professional networks necessary to navigate the modern corporate world. Since its inception in 2003, the program has provided over 36,000 teenagers with a rigorous curriculum of online career-exploration courses, interview preparation, professional mentoring, and paid internships. At its peak, the program placed thousands of students annually in roles paying up to $16.50 per hour.

However, despite its proven track record of transforming lives, Step Up is currently grappling with a sharp decline in employer participation. While the program’s budget remains significant—totaling $3.75 million in 2025—the number of available internships has plummeted. This summer, only 1,250 students were placed, a stark contrast to the record 2,325 placements seen in 2011. With two applicants for every available spot, the program is forced to turn away half of the youth seeking a path into the professional workforce at a time when teen unemployment, particularly among Black Minnesotans, is on the rise.

Chronology: Two Decades of Growth and Contraction

The story of Step Up began in 2003, born from a partnership between then-Mayor R.T. Rybak and Richard Davis, the former CEO of U.S. Bancorp. Their vision was grounded in a pragmatic economic reality: Minnesota’s future workforce would increasingly depend on the success of its diverse youth. Davis, who began his own storied career as a part-time bank teller, and Rybak became the program’s "cheerleaders-in-chief," successfully recruiting private sector giants, non-profits, and government agencies to open their doors to high schoolers.

The Golden Era (2003–2015)

Throughout the first decade, Step Up expanded rapidly. It survived the Great Recession, ironically peaking in 2011 as employers looked for ways to reinvest in the local community during a period of slow recovery. During these years, the program established a "gold standard" for youth workforce development, combining soft-skills training with real-world experience.

The Transition Years (2016–2020)

As the founders moved on to other roles, the program transitioned into a more institutionalized phase. While still successful, the initial "CEO-to-CEO" recruitment fervor began to cool slightly. Nevertheless, the program remained a staple of the Minneapolis summer, providing a reliable pipeline for companies like Best Buy, Target, and U.S. Bank.

The Post-Pandemic Shift (2021–Present)

The onset of the COVID-19 pandemic and the subsequent shift to remote and hybrid work models proved to be a watershed moment for the program. The traditional office environment, where an intern could sit next to a mentor and learn through osmosis, began to vanish. By 2023 and 2024, the numbers began to slide. The 1,385 internships recorded in early 2025 dropped to the current low of 1,250 by this summer, signaling a concerning trend that administrators are now scrambling to reverse.

Supporting Data: The Economic Reality for Minnesota’s Youth

The decline in internship opportunities is occurring against a backdrop of worsening labor market conditions for Minnesota’s youngest workers. According to Angelina Nguyen, director of labor market information at the Minnesota Department of Employment and Economic Development (DEED), the statistics are sobering.

• Teen Unemployment: In the spring of 2025, the teen unemployment rate in Minnesota stood at 7.9%. By May of the same year, it had nearly doubled to 13.5%.
• Racial Disparities: Unemployment among Black Minnesotans continues to run significantly higher than the state average, exacerbating the "opportunity gap" that Step Up was designed to close.
• Demographic Shifts: DEED data confirms that virtually all of Minnesota’s incremental workforce growth since the early 2000s has come from people of color, including immigrants. This makes the preparation of these specific demographics not just a social imperative, but an economic necessity for the state’s continued growth.
• The Competition Factor: Teens are no longer just competing with each other for entry-level roles. They are increasingly competing with older, more experienced workers who are re-entering the workforce or seeking "side hustles" in a tightening economy.

The traditional "starter jobs" in fast food, retail, and entertainment have also seen a contraction in openings compared to previous years, leaving youth with fewer alternatives when professional internships are unavailable.

Official Responses: Why Are Employers Stepping Back?

The reasons for the declining participation are multifaceted, involving a mix of logistical, economic, and political factors. Tammy Dickinson, the long-time manager of Step Up, and other labor market analysts have identified several key hurdles.

The Remote Work Dilemma

The rise of hybrid and remote work has fundamentally altered the capacity for mentorship. "Workforce shifts have resulted in fewer managers available to take on interns," analysts note. Many managers feel they cannot adequately supervise a 16-year-old from a Zoom screen, leading companies to opt out of the program rather than provide a subpar experience.

Economic and Technological Uncertainty

Businesses are currently operating in a state of heightened caution. The rapid advancement of Artificial Intelligence (AI) has led some firms to pause entry-level hiring as they reassess which tasks will be automated in the coming years. Additionally, broader economic uncertainty has led to a "wait-and-see" approach regarding headcount.

The Political Climate and DEI Backlash

A more sensitive factor is the changing political landscape. Analysts point to pressure from the national political stage—specifically citing the influence of the Trump administration’s rhetoric—which has led some corporations to become wary of initiatives that could be framed as "diversity-first" programs. While Step Up is a workforce development program, its focus on lower-income students of color has made some risk-averse legal departments cautious about their participation in an era of increased scrutiny over Diversity, Equity, and Inclusion (DEI) initiatives.

Despite these challenges, Tammy Dickinson remains hopeful. She emphasizes that high school counselors consistently report that Step Up veterans are significantly better prepared for post-secondary life than their peers. "They are training their future workforce," Dickinson says of the employers, urging more healthcare and technical firms to join the fold.

Implications: From "Jarring" Starts to $100k Salaries

The long-term implications of the Step Up program are best illustrated through the lives of its alumni. For these individuals, the program was not just a summer job; it was a trajectory-altering event.

The Corporate Success: Jordan Dotson

Jordan Dotson’s story exemplifies the program’s ideal outcome. A graduate of Minneapolis South High School, Dotson grew up in a working-class household on the North Side. She took two buses every day to participate in school activities, fueled by her parents’ high expectations.

Through Step Up, she landed an internship at Best Buy at age 15. "It was a little jarring at 15 or 16 to prepare for an interview at a Fortune 500 company," Dotson recalls. That early exposure helped her overcome "imposter syndrome" and gave her a sense of belonging in spaces where few people looked like her. Today, at 25, Dotson is an environmental compliance manager at Best Buy, a full-time role she secured after graduating from the University of Minnesota. Her mentor, Best Buy attorney Mary Thomas, evolved from a supervisor to a colleague, guiding Dotson through the complexities of law and regulation.

The Skilled Trades: Mike Archer

The program’s impact extends beyond the "cubicle farm." Mike Archer, 27, grew up in a low-income household with a single mother who lived on a disability income of $14,000 a year. Step Up provided Archer with a job in a local park, which he credits with keeping him away from "negative influences" in his neighborhood.

"I wasn’t just running around the neighborhood," Archer says. "I was responsible. I bought my own first phone and some clothes. My job gave my mom a break." While Archer admits he wasn’t a "great student," the work ethic he developed led him to Dunwoody Technical College. Today, he is a journeyman electrician and foreman, earning $63 an hour. "I’ll make over $100,000 this year. I own a home. I’m blessed," he says.

The Community Anchor: Rene Madrid

At the U.S. Bank office on East Lake Street, manager Rene Madrid continues to champion the program. An immigrant from El Salvador and a University of Minnesota graduate, Madrid has mentored over 50 interns since 2010. He sees the program as a vital tool for community wealth-building.

"Some of my top bankers started as interns," Madrid says, pointing to 22-year-old Jorge Estudillo Castillo, who started as a Step Up intern while attending Cristo Rey High School and is now a full-time banker. Madrid argues that even if an intern doesn’t stay in banking, they leave with essential life skills: personal finance, credit management, and professional networking.

The Bottom Line

The stagnation of Step Up represents a potential "brain drain" for Minneapolis. As the state’s population ages and the demand for skilled labor in sectors like healthcare and green energy rises, the failure to engage the city’s youth could lead to a permanent economic disadvantage.

The success of alumni like Dotson and Archer proves that when given a seat at the table, Minneapolis youth can not only compete but lead. The challenge for the city now is ensuring that the table doesn’t continue to shrink, leaving thousands of potential success stories waiting at the door.