The definition of "unhoused" has changed. It's no longer just about those sleeping outdoors or in shelters. It includes a much broader group of people who are experiencing housing instability. These are individuals who are couch surfing, living in motels or cars, or doubling up with family members due to economic hardship. They are your potential hires, and in many cases, they are already on your payroll.
This presents a powerful opportunity for employers to build a more resilient and inclusive workforce. By understanding the evolving landscape of homelessness and implementing supportive practices, businesses can not only tap into a motivated talent pool but also strengthen their company culture and community ties.
The September 2025 Workforce Wednesday session hosted by the Minnesota Department of Employment and Economic Development Workforce Strategy Consultants focused on Engaging the Unhoused Workforce. You can watch a recording of that session.
So, who are the unhoused? The stereotype of an unhoused person often doesn't align with reality. The U.S. Department of Housing and Urban Development (HUD) reported that on a single night in January 2024, over 770,000 people were experiencing homelessness. This figure is the highest recorded since data collection began in 2007. The population is diverse, spanning various age groups, genders, races and ethnicities.
While the majority of unhoused individuals are male, there is a rising number of women, particularly women with young children, experiencing homelessness. A large number of those who are unhoused also have a disability. When it comes to racial and ethnic groups, Black, Hispanic, American Indian and Alaska Native people are disproportionately represented in the unhoused population compared to their share of the general population. For example, while Black individuals make up about 12% of the U.S. population, they accounted for 32% of the people experiencing homelessness in January 2024.
Perhaps one of the most surprising statistics is that a significant portion of the unhoused population is employed. Studies have found that over half of adults in homeless shelters and about 40% of unsheltered individuals have jobs. The issue is often not unemployment, but under-employment. These individuals work part-time or low-wage jobs that do not provide enough income to afford stable housing.
The good news is that employers can make a tangible difference. Here are some actionable steps you can take today to support and retain unhoused talent:
1. Adjust Your Hiring Practices:
- Remove barriers: Eliminate strict address requirements by allowing PO boxes or shelter addresses.
- Be flexible with interviews: Offer in-person or phone interviews in addition to virtual options, as not all candidates have consistent internet access. Consider offering transportation stipends.
- Focus on skills, not gaps: Look at a candidate's skills and potential, rather than focusing on gaps in their employment history.
2. Create a Supportive Workplace:
- Offer on-the-job training: Provide training and mentorship opportunities to help employees develop new skills and advance their careers.
- Provide wrap-around support: Partner with local community organizations and workforce development agencies that can provide resources such as housing assistance, financial counseling and health services.
- Foster an inclusive culture: Train your HR and hiring managers to recognize and avoid biases. Cultivate a culture where all employees are treated with dignity and respect, regardless of their circumstances.
3. Be a Partner in the Community:
- Build a referral pipeline: Collaborate with shelters, food banks and job readiness programs to connect with a pipeline of motivated and skilled candidates.
- Advocate for change: Use your voice as an employer to support policies and initiatives that increase access to affordable housing and support services.
By taking these steps, you are not only helping individuals in need but also building a stronger, more resilient, and more equitable business.
Understanding and Overcoming Misconceptions
Many hiring managers hold outdated assumptions about unhoused individuals, often influenced by media portrayals that focus on problems rather than potential. The reality is far different. As a panel of experts on the September Workforce Wednesday shared, many unhoused people are highly motivated, skilled and eager to work. The primary barriers they face are not a lack of ability but a lack of resources, such as transportation, a stable address or a place to store their belongings.
According to our panelists, a key perspective shift is to focus on skills and potential rather than circumstances. They suggest that a more accessible hiring process can make a world of difference. Derrek Christensen from Wildflyer Coffee noted that a simple act like taking a break during an interview to allow a candidate to relax and gather their thoughts can reveal their authentic self and lead to more informed hiring decisions.
Beyond the Offer Letter: What to Do After the Hire
The journey doesn't end when a job is accepted. Unhoused employees face persistent barriers that can derail their success. Our panelists identified several key challenges:
- Financial Instability: The "benefits cliff" is a major concern. When an unhoused person gets a job, they risk losing vital benefits like food assistance or healthcare, creating a new, overwhelming financial gap. Providing access to financial literacy training and support can help them navigate this transition.
- Logistical Challenges: Transportation and childcare are ongoing barriers. Denise Goldman from Project for Pride in Living (PPL) explained how her organization provides bus passes and gas cards, in addition to teaching effective communication skills so employees can talk to their managers about issues without fear. Tosh Thompson from Small Sums added that childcare is a huge barrier for many, limiting the hours they can work.
- Unspoken Workplace Rules: As Derek from Wildflyer Coffee pointed out, things that seem like common sense to a manager—like not consistently showing up a few minutes late—can be a major issue for someone dealing with housing instability. A flexible, understanding approach and clear communication of expectations can prevent a minor issue from becoming a reason for a write-up or termination.
How Employers Can Take the First Step
Creating a supportive and inclusive environment starts with auditing your current practices. Here's a simple checklist to get you started:
- Review your hiring process: Can a candidate apply without a permanent address? Are you focused on skills rather than employment history gaps?
- Partner with local organizations: Community-based groups like PPL, Wildflyer Coffee, and Small Sums are already working with this talent pool. They can connect you with motivated candidates and provide ongoing support services.
- Train your team: Educate HR and managers on the realities of housing instability and the importance of compassionate, trauma-informed practices.
- Foster a culture of dignity: Every employee, regardless of their background, deserves to be treated with respect. This creates an environment where people feel safe and empowered to ask for help when they need it.
By taking these steps, you're not just offering a job—you're offering a pathway to stability and a chance for someone to thrive. And in return, you get a loyal, resilient, and dedicated employee.
The Power of Lived Experience
One of the most compelling insights from our discussion was the incredible value of lived experience. Tosh from Small Sums noted that people who have faced housing instability are often very willing to volunteer and give back to their community. They have a strong desire to help others who are going through similar situations, and this passion translates into a powerful sense of purpose.
This commitment can be a huge asset to your company's culture and community engagement. By creating opportunities for employees to get involved—whether through company-led volunteer days or by providing a platform for them to start their own initiatives—you can tap into this well of dedication.
Derrek from Wildflyer Coffee echoed this, explaining that his organization has found success by establishing an advisory board made up of program graduates. This approach empowers individuals with lived experience to become decision-makers and change-makers, giving them a legitimate impact on the company's direction.
A key takeaway for employers is the importance of agency. Instead of "pulling people in" to help based on their past, the best practice is to put opportunities out there and let them choose to engage. This approach honors their autonomy and respects them as individuals, not just as a statistic or a story.
Deanna Monroe from the Leech Lake Housing Authority, who has lived experience herself, highlighted the immense value of hiring people who have been through trauma and rebuilt their lives. Deanna explained that such individuals are "very compelling, very passionate," and they bring an understanding of what it takes to start over. She emphasized that trauma is not unique to the unhoused community; it's something many people have experienced. By recognizing this, employers can create a more empathetic and supportive environment for everyone.
What This Means for Your Business:
- Create feedback channels: Give employees a platform to share their ideas and feedback, and make sure their voices are genuinely heard and acted upon.
- Empower your employees: Consider forming an employee advisory board or a task force on community engagement. This not only shows you value their input but also leverages their unique perspectives for the benefit of the company.
- Hire for lived experience: Actively seek out and hire individuals with lived experience for roles where their understanding would be a significant asset, such as in HR, community relations, or client-facing roles.
By embracing the strengths that come from lived experience, you can build a more compassionate, innovative and resilient workforce.
When you hire an unhoused individual, tou're not just hiring an employee; you're offering a pathway to stability and breaking the cycle of poverty. This isn't just a social good; it's a strategic business move. When you create an inclusive environment, you not only help people achieve stability but also build a loyal, dedicated and diverse workforce.
