The Pipeline at Risk: Balancing Success and Scarcity in Minnesota’s Youth Internship Programs

In 2019, Jordan Dotson was a standout student at Minneapolis South High School, a teenager from a working-class household on the city’s North Side who balanced rigorous academics with a passion for theater. Her daily routine involved a two-bus commute, a testament to the grit instilled by her parents, who maintained high expectations for her future. Today, at 25, Dotson is an environmental compliance manager at Best Buy’s corporate headquarters—a role she secured after a journey that began not with a post-graduate application, but with a high school internship.

Dotson’s trajectory is the gold standard of what the Minneapolis "Step Up" program was designed to achieve. However, as Minnesota grapples with a shifting economic landscape and evolving political pressures, the very programs that propelled Dotson and thousands of others into the middle class are facing unprecedented challenges. While the success stories remain a powerful testament to the efficacy of early career intervention, a decline in employer participation is threatening the future of the state’s most vital workforce pipeline.

Main Facts: The Success of Step Up and Right Track

The Minneapolis Step Up program, and its St. Paul counterpart, Right Track, serve as a bridge between the Twin Cities’ corporate wealth and its untapped human potential. Since its inception, Step Up has provided 36,000 teenagers with more than just summer jobs; it offers a comprehensive curriculum of online career-exploration courses, mock interviews, and professional mentoring.

For students like Dotson, the impact was transformative. "It was a little jarring at 15 or 16 to prepare for an interview at a Fortune 500 company," Dotson recalled. "The internship helped me with networking… and to start feeling that I belonged."

The program specifically targets lower-income Minneapolis teens, a demographic that is disproportionately composed of students of color. Many participants come from single-parent households or communities that lack the "social capital"—the professional connections and networking opportunities—that their wealthier peers often take for granted. By placing these students in roles that pay up to $16.50 an hour for 40 hours a week, the program provides both immediate financial relief and long-term career trajectory.

Dotson’s experience highlights the "long game" of the program. She worked at Best Buy through high school and college, mentored by Mary Thomas, a Best Buy attorney. What began as a student-mentor relationship evolved into a professional partnership. Dotson, who credits her "compliance brain and math brain" for her success, is now a full-time employee at the company where she once interned as a teenager.

Chronology: From 2003 Optimism to 2024 Uncertainty

The origins of Step Up date back to 2003, born from a unique collaboration between the public and private sectors. Then-Mayor R.T. Rybak and former U.S. Bancorp CEO Richard Davis recognized that the city’s economic future depended on integrating its diverse youth population into the workforce. Davis, who began his own career as a part-time bank teller, became a vocal advocate for the program, urging CEOs to see these internships not as charity, but as a strategic investment.

The program saw a steady climb in participation for nearly a decade, reaching a historic peak in 2011, when Step Up employed 2,325 teenagers. During this era, the program was hailed as a national model for municipal youth employment.

However, the last decade has seen a gradual and concerning retreat. By 2024, the number of internships had plummeted to a recent low of 1,250. This represents a significant drop from the 1,385 internships recorded just one year prior in 2023. Currently, the demand from students far outstrips the supply of positions, with two teenagers applying for every available internship slot. This decline comes despite a 2024 budget of $3.75 million, supported by 85 wage-paying employers and various government funding streams.

Supporting Data: A Demographic and Economic Shift

The decline in youth internships is occurring at a time when Minnesota’s demographic data suggests they are more necessary than ever. According to the Minnesota Department of Employment and Economic Development (DEED), nearly all the incremental growth in Minnesota’s population and workforce since the early 2000s has come from people of color and immigrants.

"Providing more opportunities for people of color… is key to economic growth," DEED reports state. Yet, the barriers to entry are rising. Angelina Nguyen, director of labor market information at DEED, points to a troubling spike in teen unemployment. In the spring of 2023, the teen unemployment rate in Minnesota sat at 7.9%. By May of 2024, that figure had nearly doubled to 13.5%.

For Black Minnesotans, the unemployment rates are even higher, creating a "perfect storm" of economic exclusion. Nguyen notes that teenagers are increasingly competing with older, more experienced workers for entry-level roles in fast food, retail, and entertainment—sectors that have seen a contraction in openings over the past year.

The Economic Rationale for Internships:

• Workforce Growth: Immigrants and people of color are the primary drivers of Minnesota’s labor pool.
• Unemployment Gap: Teen unemployment (13.5%) is significantly higher than the general population, with racial disparities exacerbating the issue.
• Career Readiness: Step Up veterans are reported by high school counselors to be significantly better prepared for post-secondary planning than their peers.

Official Responses: Why are Employers Stepping Back?

The reasons for the decline in internship slots are multifaceted, ranging from structural changes in the workplace to a shifting political climate. Tammy Dickinson, the long-time manager of Step Up, and other labor market analysts have identified several key drivers:

The Remote Work Dilemma

The onset of remote and hybrid work models has fundamentally altered the "manager-intern" dynamic. With many corporate employees working from home, there are fewer managers physically present to supervise, mentor, and integrate high school interns into the office culture.

Economic and Technological Uncertainty

Businesses are currently navigating a period of significant caution. Economic uncertainty, coupled with the rapid rise of Artificial Intelligence (AI), has led many firms to slow overall hiring. Employers are hesitant to commit to internship programs when they are still assessing how AI will reshape their entry-level workforce needs.

The Political "Chilling Effect"

Perhaps the most controversial factor is the influence of national politics on local Diversity, Equity, and Inclusion (DEI) initiatives. Analysts suggest that some employers have become wary of programs that specifically target students of color due to pressure from the Trump administration’s rhetoric and legal challenges against diversity-focused corporate policies. This has led some firms to eschew anything that could be perceived as a diversity initiative, even programs with a 20-year track record of success like Step Up.

Implications: The Long-Term Cost of Lost Opportunity

The reduction in these programs carries implications that extend far beyond a single summer paycheck. For many participants, these internships are the only shield against "negative influences" in under-resourced neighborhoods.

Consider the story of Mike Archer, 27. Raised by a single mother with a disability who earned just $14,000 a year, Archer credits Step Up with changing the trajectory of his life. His first job, working in a park for $7.24 an hour, taught him responsibility and the pride of self-sufficiency.

"I wasn’t just running around the neighborhood," Archer said. "I bought my own first phone and some clothes. My job gave my mom a break." Archer eventually attended Dunwoody Technical College and is now a journeyman electrician and foreman. He earns $63 an hour, owns his own home, and expects to make over $100,000 this year. Archer’s story illustrates that these programs are not just about corporate office jobs; they are a gateway to the skilled trades and financial independence.

Similarly, Rene Madrid, an immigrant from El Salvador and manager of the U.S. Bank office on East Lake Street, has mentored more than 50 interns. He sees the program as a vital tool for community stabilization. "Some of my top bankers… started as interns," Madrid said. He currently works alongside Jorge Estudillo Castillo, 22, a former intern who is now a professional banker serving a bilingual customer base.

If the decline in participation continues, Minnesota risks losing a generation of talent like Archer, Dotson, and Castillo. The state’s healthcare sector, currently facing a massive labor shortage, is one area where Step Up is desperately trying to expand. Entry-level roles in nursing and medical technology offer a clear path to the middle class, but they require the initial "step up" that only an internship can provide.

As Tammy Dickinson and the Step Up leadership look toward 2025, the message to Minnesota employers is clear: the teenagers applying for these roles today are the managers, electricians, and nurses of tomorrow. Failing to hire them now may save a line item in a summer budget, but the long-term cost to the Minnesota economy—and its social fabric—could be immeasurable.