WASHINGTON: Unemployment has continued to rise in the Northland, in some cases reaching levels not seen in four or five years. But more is driving up the rates than the typical seasonal increase. “What you are seeing is the effect of the layoffs in the mining industry and its support industries,” said Erik White, regional analyst for the Minnesota Department of Employment and Economic Development. That impact has now stretched beyond the Iron Range, where hundreds were laid off last year, and has reached Duluth, he said.
The city’s jobless rate climbed from 3 percent in October to 5.2 percent in March — a level not seen since early 2014 — as the number of jobs declined and the number of people out of work grew. Still, Duluth continues to fare better than elsewhere in the region. The Greater Twin Ports area — which includes all of St. Louis, Carlton and Douglas counties — saw unemployment rise from 4.4 percent in October to 7.1 percent in March, while all of Northeastern Minnesota rose from 4.6 percent in October to 7.8 percent in March.
Meanwhile, rates in Hibbing and Virginia, which jumped in June with the layoffs, have topped 9 percent since January. But the higher rates can be deceiving. “Mining and its support industry are struggling, but plenty of other employers are looking for people — hotels, hospitality, food service and in health care especially,” White said.
DEED’s latest job vacancy survey shows that the greatest need is for health care practitioners and technicians that include pharmacists, nurse practitioners, registered nurses and licensed practical nurses — occupations that pay well. At the Minnesota Workforce Center in Duluth, Job Service Manager Betsy Harmon hasn’t seen a big bump in the number of people coming in and using their services. “There’s still a lot of jobs available, but not at a pay that people want,” she said, noting jobs in the hospitality, service and retail sectors.
In the Twin Ports, with two new hotels — Pier B Resort and Holiday Inn Express — opening this summer as well as a Mills Fleet Farm, the competition to fill their jobs is intensifying. “We’re seeing competition for occupations that are lower in pay,” White said. “They’re struggling for applicants.” As a result, both White and Harmon expect to see wages and benefits increase to attract and keep employees.
