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As construction projects end, local jobs decline

The number of jobs in the larger Twin Ports area typically drops in November, but more jobs than usual were lost last month. And you can thank the great construction season we just had for it. The Amsoil Arena construction, Enbridge energy projec...

Amsoil Arena
Workers use heavy equipment to lift the Amsoil sign into place on the new Amsoil Arena in October. The end of the construction season and completion of major projects such as the arena led to a higher-than-normal seasonal loss of jobs in November. (File / News Tribune)

The number of jobs in the larger Twin Ports area typically drops in November, but more jobs than usual were lost last month.

And you can thank the great construction season we just had for it.

The Amsoil Arena construction, Enbridge energy project, mine projects, Interstate 35 construction and stimulus projects boosted the number of seasonal construction workers. But when the season ends and projects wrap up, workers are laid off.

That contributed to the 1,465 jobs lost in the statistical area of St. Louis, Carlton and Douglas counties, according to data released Thursday by the Minnesota Department of Employment and Economic Development.

The job loss follows a gain of 800 jobs in October as total jobs reached their highest point since 2008.

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In November, higher-than-normal job losses also were seen in the area's leisure, hospitality and government jobs.

Drew Digby, DEED's regional labor market analyst, attributes some of the loss of government jobs to stimulus money running out. With the fiscal year ending Sept. 30, some workers were able to stay on the government payroll in October but were laid off in November, he said.

"It's a sign that government is really stressed with finances of its own," he said.

But Digby was puzzled by the loss in leisure and hospitality jobs, because indications are that the Twin Ports area had one of the best tourist seasons in some time. Fewer workers than usual were laid off in October. But, he said, they may have instead been laid off in November, contributing to the November decline.

The losses were offset somewhat by increases in hospital, manufacturing and retail jobs. General merchandise jobs alone rose nearly

5 percent.

And the big picture still is positive.

The total number of jobs in the three-county Twin Ports region was up nearly 1 percent this November over November 2009. Increases were seen in most categories, including leisure and hospitality.

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"Even mining, logging and construction is up over a year ago," Digby said. "And that was the deep part of the recession for us."

But the number of jobs is expected to decrease further in December and January as part of the typical winter seasonal decline, before starting to pick up again in February.

The job data precedes the release of local unemployment rates, due out Tuesday. Meanwhile, Minnesota's seasonally adjusted unemployment rate for November remained stable at 7.1 percent, while the national rate rose from

9 percent in October to 9.8 percent in November.

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