Jobless rates rose across the lakes region in January, but none as high as the city of Brainerd.
The unemployment rate in Brainerd jumped to 18.1 percent for January, an increase from 16 percent in December. The jobless rates for January, released by the state Tuesday, show an increase across the region. Because of the time delay, with February’s rates not expected until later this month, any pick up in hiring won’t immediately be reflected. And with the seasonal nature of the lakes area work force, the unemployment rate typically rises during the winter months.
A year ago in January, Brainerd’s jobless rate was 19 percent. Two years ago, deep in the Great Recession, it was 20.7 percent. The bleak winter of 2009 represented four months where the unemployment rate was near or above 20 percent between January and April. That May, the jobless rate finally dropped to 15.8 percent.
Brainerd, which perennially ranks first for the highest unemployment in cities of 10,000 or more, has had double-digit jobless rates for 27 consecutive months. The last time it dipped below was in October of 2008 at 9.8 percent. For two months that fall the jobless rate hovered just below 10 percent. To find a year with more than two months in a row of unemployment below 10 percent means going back before the recession startedto November 2007.
For the city of Brainerd, the most recent percentages mean out of a labor force of 7,138, there were 1,290 people unemployed. Baxter is not included in the reporting because of its size. As an example, Eden Prairie, had a jobless rate of 5.2 percent, meaning out of a workforce of 35,249 there were 1,847 people without jobs.
The Brainerd micropolitan, including Crow Wing and Cass counties, had an 11.8 percent unemployment for January, up from 10.5 percent in December. A year ago, the micropolitan had an unemployment level of 11.9 percent. It rose to 12 percent in February of 2010, the highest level posted last year.
All seven area counties posted increases in the jobless rate between December and January.
• Aitkin County rose to 11.9 percent, or 881 people, up from 10.4 percent.
• Cass County rose to 13.7 percent, or 1,871 people, up from 12.1 percent.
• Crow Wing County rose to 10.9 percent, or 3,466, up from 9.8 percent.
• Mille Lacs County rose to 13.6 percent, or 1,662 people, from 12.3 percent.
• Morrison County rose to 11.9 percent, or 2,132 people, up from 10.4 percent.
• Todd County rose to 8.7 percent, or 1,135 people, up from 8.2 percent.
• Wadena County, rose to 11.5 percent, or 754 people, up from 10.8 percent.
Compared to other large cities in the state, Brainerd continues to have the highest January unemployment. The next contenders are Grand Rapids at 14.7 percent, Bemidji at 13.9 percent, Virginia at 11.5 percent, Alexandria at 11.1 percent and Cloquet at 10.4 percent. Moorhead posted a jobless rate of 4.7 percent and Marshall had 4.4 percent.
RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.
Comments (23)
Add commentMaybe if we spend another
Maybe if we spend another trillion dollars there will be more jobs
conflicting numbers
is it 18.1% up from 16% but then says 11.8% up from 10.5% so which is it???
either way its high, not good for the lakes area, must be time to find a new area to live. considering the school district wants more money, there are very few jobs and the ones there are don't pay a living wage, least not enough to live at a decent enough level to support a family. come on brainerd buisness owners is there a plan in motion to correct this problem or is it a dead issue?
either way unemployment over 5% should be a concern for buisiness owners in this town if it holds at levels we see now, or goes even higher there'll be more buisiness revenue lost due to less people being able to purchase your goods. it starts at the buisiness level, wan to improve our economy in the lakes, hire more people, give them better wages, get the ball rolling...
uh!!!
whats a micropolitan? sounds like a made up term of endearment for a failing city...
That climbing rate compared to...
Has anyone graphed that unemployment rate, climbing again, against the number of housing foreclosures; the increasing percentage of empty apartments, maybe houses too; and whether the population of Brainerd is rising or falling? That is, how much is the continuing high rate of unemployment affecting everything else so that people are actually leaving, if they are? Are there other measures or indicators to give us a better picture of what's happening in the city--and why? What's the problem, here? Seems like an up and coming city and then it turns out it may not be. What's the core problem--in detail, somebody (in a series of articles, probably)--what's being done to solve it, and what does the future hold for this city if this continues?
once again...
IT'S BUSH'S FAULT.
Why not, I mean the savior has only spent several trillion in making sure we lose jobs and go into hyperinflation.
Ever think that maybe the gas price is more than just oil going up? We are in the beginnings of hyperinflation and that is really really really scary. Zimbabwe ring a bell?
Time to move!
Well it has now been one year from the time our family moved out of the Brainerd Lakes Area and believe me the best move of my life. We moved to Brainerd in 1996 and opened our own business in 2001. Times where great until the housing market crashed. So now what? Well the civic leaders have sure done a lot in the past year for the Brainerd Economy I see. How many new businesses have they brought into town with the JOBZ program through the state of MN? Probably have not even heard of it. How is that large new welcome center doing south of town? That sure helped. The sooner Brainerd figures out that the area can not run on NHRA, the MPLS lake commuter, and the little vacation trips that people take there the sooner it will come out of this. The six fugure earning Realtors and Construction people that supported the area for the last 10 years is no more people. But I'm sure there is plenty of product left to choose from. If you are seriously looking to get back on track and you are not a health care professional, auto dealer, grocery store owner, big box store employee go west people go west! PS. If you think it is bad now just wait until $5.00 gas Brainerd! IT IS COMING...........
Wages here are the same as
Wages here are the same as they were in the 1970s,and everything else has skyrocketed .resorts don't pay enough , unless u live at home with your parents. And then u only work 4 or 5 months of the yr . Gas going up is really gonna wreck havoc on this vacation wonderland.
UNEMPLOYMENT
Time for another school referendum yet????
Micropolitan
Micropolitan Statistical Areas are determined by the US OMB. They are like metropolitan areas, but micro. It's pretty creative, that's why we give Washington DC trillions of dollars every year.
From an article in CNN Money
From an article in CNN Money today:
"James Sherk, a policy analyst with the Heritage Foundation, said in prepared remarks that federal workers' hourly wages average 22% above those of private sector workers.
In his prepared statement, Andrew Biggs, a scholar at the American Enterprise Institute, cited his own report saying federal employees' wages, job security and fringe benefits -- such as paid sick time and retirement benefits -- are 39% above that of the private sector.
But John Berry, director of the U.S. Office of Personnel Management, defended worker pay. In his testimony, he said it's not easy or fair to compare federal workers directly with private sector workers, because federal workers are more highly educated and work more highly skilled jobs than private sector employees."
http://money.cnn.com/2011/03/09/news/economy/federal_worker_pay/index.htm
But please keep in mind that their unions can not particpate in collective bargaining.
"Both Berry and Colleen Kelley, president of the National Treasury Employees Union, cited a Bureau of Labor Statistics survey that reports federal workers are underpaid compared to their private sector peers"
1970's Ford F-150 price
My brother purchased a new F150 4X4 I believe in 1976 or 77.
It was $7,000 and I remember thinking as a grade schooler how that was so much money.
Now gas costs more per gallon than milk...or very close and I suspect the price of gas will surpass milk very soon.
JVC
give the money back!
hey BLADEC-how about giving ALL the tax money you have recieved under the false pretence of "creating jobs" back to the county and city? what a joke and waste of money. you should get a award for the highest unemployment in the state 3 years running! love the going to pot image.
give the money back
First BLADEC needs to get another grant to see way
unemployement is so high,i am sure they do not have a clue.
But remember this town is still waiting for the railroad to come back!!!
Why consistently highest in the state?
Renee--stats appreciated. What's needed, though, is a serious assessment about why Brainerd still has the highest unemployment rate in the state going into the third year, now. Readers have some thoughts, but who's working on this in Brainerd? What else is tied into this? Is it a snowball effect so that by now everything's being dragged down economically in this town? I may have missed a series on all this, excuse me. How about a blockbuster, award-winning-potential series of articles on why Brainerd is going down the drain, according to various leaders around town who may be trying to do something about it? Are they? And, what is it? Any results? Have a range of people been interviewed about this? I'm sure there must have been plenty of meetings on this and that the meetings must have been covered in this paper over the last two years and I just missed them. Nobody speaks in your article. Therefore, the pain on the "street" is missing, it's just cold stats. Sorry. We need more from our newspaper on a disastrous topic for this city. Something more heartfelt and human, please. Not just stats.
Interpreting the stats:
Pretty interesting, too: from today's online news elsewhere:
http://news.yahoo.com/s/yblog_thelookout/20110309/ts_yblog_thelookout/jo...
BLAEDC
Please reconsider your negative comments about BLAEDC. Are they justified? If you asked the businesses in this community that have worked with BLAEDC about the value, I believe you would hear a very positive and promising story. For those naysayers, take time to review the BLAEDC website www.growbrainerdlakes.org or call and request a copy of their annual report. Educate yourself on their impact to date. One organization will not fix the unemployment rate alone, but they certainly have helped the economic development of our community.
Thank you, positivevoice
This reader, not part of the knowledgeable crowd, didn't know what was meant by "BLAEDC," excuse me; but your response contains the website which spells out enough of the letters to make out the name; and I for one can now go see what's being done. This helps! Probably assumptions are made by those out there deeply involved in all this, on all sides, who know the history and have the info.; but the general reader may not. Another reason for their to be a big series now, when the rate has jumped up again, to gather all the current info. and lay it out. For one thing, there could be fresh thinkers out there in the general public for whom such a series, with the full current situation laid out, might trigger even more good ideas towards a solution. I am happy to be corrected in my ignorance and glad to be pointed to the website; thanks. As you point out that organization would provide one part of the answer; I can't guess what the other parts might be but will watch for them. Meanwhile, I am seriously thinking about some of the points, above, in "Time to Move." But this is before studying the website you mention.
KJC, want to acquire ‘legendary status?
KJC, the City of Brainerd has a number of options available to assist in efforts to lower unemployment.
BLAEDC is one the City contributes approximately $70,000 to annually.
There is the JOBZ program the City or better to say, “Businesses” can access through the State of MN. This program provides subsidies…I’m not very knowledgeable on JOBZ, so I suggest you research yourself.
There is also Tax Increment Financing (TIF) available to many businesses with a desire to build new or to relocate and the like. TIF uses a formula whereby the difference in the property tax from the initial time of purchase or renovation is usually increased following new construction and the difference in the higher property tax from the initial tax is given back to the owner over the course of many years on an annual basis.
This then doesn’t create any “new” tax revenue to the City, but does assist the business owner financially.
Trouble with TIF is that many times new business is competing with existing business and it is often looked at as an unfair advantage. Additionally, the business receiving TIF still receives all the services from the City i.e., fire, police, but truly doesn’t pay what some might perceive as their fair share.
TIF has also been criticized because usually businesses that have received it rarely provide living wage jobs.
There is also the MN Department of Employment and Economic Development (DEED) which provided Wausau $400,000 last year to build a new paper machine to the tune of $27 million without any new job creation.
The City of Brainerd also has a Revolving Loan Fund which assists business in many various improvements such as reconstruction, renovation and I believe sometimes capital improvements as well.
The City also provided Wausau $100,000 from their revolving loan fund last year...but again, no new jobs.
If you’ve any new ideas related to lowering unemployment in this City, don’t hesitate getting in touch with any City Council member or City Staff…I’m certain they’ll listen carefully.
This issue (unemployment) has been pondered at length over the years however; I cannot imagine how a local unit of government is equipped to create new business/jobs while lowering unemployment.
If you really think about it…ask yourself how the City of Brainerd is to be expected to create new jobs or business?
Answer that question with something productive and you will acquire legendary status.
Jeff Czeczok
Do Not Blame BALDEC
Well, when I read what some of the fellers had to say about BALDEC, I said to myself, "now, that's sure a shame all right.."
Because you see the truth is that it is not true. BALDEC is not the problem here. Plus also volunteerism and an all volunteer organization. By that I mean, we don't pay a penny for BLADEC! It is all volunteer. Sheela Havisham (I thing that is how it is spelt?) is the one and look at the positive accomplishments for a volunteer organization. For example, the Jimmy John's restaurant and the jobs that brought into the area. And dont forget the great communicator Ronald Reagen and his statements about how it all "trickles down" which is true; you order a sandwhich, then someone drives it to you in there car, and then they have to get gas, and fill up the tank and drive the wheels of the great economy. And so it goes and there you have it! I thing that the answer is we all need to spend more money, which is why we must keep taxes low on the rich so that they spend more, and drive the wheels. They spend money, it trickles down, and it is like oxigen for my seed corn!
I thing the real problem here is the democrat party and it's agenda. is it any coincidence that the last time unemployed in Brainerd was below 10% was in October 2008? That was because we had a thriving economy then thanks to a republican president George W. Bush (who, by the way, was actually born in the United States of America, in contrast to Obummer the Kenyan!).
Thing of what he did. Cut taxes on the wealthiest americans in 2001. That is gonna kick in very soon. Lets face it, it takes year's to undo the damage of Billary and the Clinton area and the years and years of economic collapse and the huge deficits of them years. When Bill raised tax rates back up on the wealthy in 1993 it triggered an economic collapse and greatest loss of wealth we ever seen. We are just know diggiing out of that whole!
So I say, dont blame BALDEC. it costs us nothing and they is generating many jobs.
DNTMG
Aitkin
Why Brainerd's numbers/trends are so different than elsewhere...
A lot of reasons, most of which are circumstantial. But Brainerd also has a "caretaker" council that does the bare minimum and doesn't actively seek out new businesses. Connection with regional economic development entities and begin bringing in manufacturing companies seeking locations. Give them a tour of the area, meet with local officials from the city, education, and health.
Small efforts can also pay off. Contact known potential businesses such as the GAP and Old Navy as a large portion of the mall is vacant. Getting these well known retailers to establish themselves in the mall would increase traffic leading to greater security for existing mall businesses and potentially draw interest from others.
A little effort would go a long way. Unfortunately, few on the council devote much effort to economic development.