|
Area job growth seen
Staff Writer Minnesota's unemployment rate in August rose slightly higher than the national unemployment rate of 6.1 percent, the Minnesota Department of Employment and Economic Development reported Thursday.
That's the bad news.
Here's the good news. There is job growth on the horizon, specifically in the manufacturing sector, in the Brainerd lakes area.
Minnesota's seasonally adjusted unemployment rate was 6.2 percent for August, compared to 5.8 percent in July and 5.3 percent in May. Minnesota's unemployment rate was lower than the national average in June but in July slightly surpassed it.
Unemployment rates by counties will be released next week. Statewide, employers dropped 3,100 jobs in August.
The sectors that saw the biggest job losses in the state included professional and business services, manufacturing, leisure and hospitality, construction and information. Sectors that bucked the trend with some growth included financial activities and trade, transportation and utilities.
But local economic officials believe the Brainerd lakes area isn't any worse off than it traditionally has been this time of year at the end of the resort season. In fact, with potential expansion at three area manufacturing plants, this sector soon may experience significant growth here.
"I think it is fair to conclude that every community and family is concerned about the economic times we are facing as a country and state," said Sheila Haverkamp, executive director of Brainerd Lakes Area Development Corp. "At the same time, BLADC is optimistic that the area's economic development efforts will continue to reap rewards for area residents. In the last few months alone, BLADC has been working with three manufacturing companies that are pursuing major expansions in our area."
The Brainerd City Council will meet at noon Thursday in a special session to discuss a Wausau Paper Co. expansion project and to consider a revolving loan fund request for the Brainerd paper mill. Haverkamp said BLADC is working with Wausau to explore financing options for the plant's proposed $1.5 million expansion project. The project would involve installing new equipment at the paper mill, which would allow for the hiring of a minimum of 12 new jobs. Haverkamp said if an additional piece of equipment could be purchased, more employees would be hired. The paper mill has an estimated 175 employees right now, she said.
Also, Cross Tech Manufacturing in Crosslake is planning a new 25,000-square-foot facility, Haverkamp said. The company has an existing facility but would build a larger manufacturing plant. The company offers a variety of metal works, design and engineering services with its primary product being a rotary brush cutter, or the Brush Wolf.
A third central Minnesota manufacturing firm located outside of Crow Wing County, which BLADC also is working with, has committed to expanding its operations in the Brainerd Industrial Park, she said. Haverkamp declined to name the firm since its owner isn't ready to make this announcement yet, but the company is located within a 30- to 60-mile radius of Brainerd and plans to expand here, she said.
Craig Nathan, area operations manager for Minnesota Concentrated Employment Program, or MN CEP, said his office isn't seeing a large increase in the number of people coming in needing employment. This doesn't mean people aren't losing their jobs or that the economy hasn't affected local businesses, but Nathan said officials here aren't seeing large numbers of people losing their jobs. This area has experienced a decrease in construction jobs because of fewer housing starts but there are still a fair number of commercial construction projects, which has helped to pick up some of that decline in residential construction, he said.
"Typically in our rural areas we run a little higher unemployment rate," said Nathan. "If we have a large employer that goes out of business it dramatically affects that rate because we're dealing with a smaller employment base. In Crow Wing County we deal with a lot of seasonal work and this time of year seasonal work tends to slack off because we have a resort industry that doesn't need as many workers. We aren't any worse off than we are traditionally, even though our local economy has been affected by the economic downturn. But we're not like the Twin Cities."
JODIE TWEED may be reached at jodie.tweed@brainerddispatch.com or 855-5858.
To Subscribe to the Brainerd Dispatch, Click Here.
Note: Comments are not edited and don't represent the views of The Brainerd Dispatch. Please read our posting rules in the terms of service policy. To report a post that may be inappropriate, click the triangle alert icon.
|
|
Top Commented Articles
