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Jobless numbers improve in the Northland

Local experts expected the September unemployment numbers would reflect economic improvement in Northeastern Minnesota. And they were right. The local numbers, released by the state on Tuesday, show unemployment at its lowest point in nearly two ...

Looking for work
John Powley of Duluth goes online at the unemployment office in the Government Services Center in Duluth to seek work in March 2009. Things have improved in the Northland since them. The unemployment rate for Northeastern Minnesota now is at its lowest point in nearly two years. (2009 file / News Tribune)

Local experts expected the September unemployment numbers would reflect economic improvement in Northeastern Minnesota.

And they were right.

The local numbers, released by the state on Tuesday, show unemployment at its lowest point in nearly two years. Slight to sizable drops in the jobless rate were recorded throughout the Northland, even as the statewide numbers were stuck at a seasonally adjusted 7 percent, and national unemployment held steady at 9.6 percent.

The Northeastern Minnesota jobless rate dropped from 7.7 percent in August to 7.2 percent in September, its lowest point since October 2008, the seasonally unadjusted figures show.

The greater Twin Ports area, which encompasses all of St. Louis, Douglas and Carlton counties, had a 6.9 percent jobless rate, its lowest point since October 2008 and down from 7.5 percent in August. Fall hiring picked up and 220 jobs were created.

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"The overall improvement in the metro area was a good number," said Drew Digby, regional labor market analyst for the Minnesota Department of Employment and Economic Development.

But he cautioned that one month doesn't make a trend.

"These numbers are good, but we want to see the numbers continue," he said.

Unemployment within the city of Duluth dropped from 7.5 percent in August to 7.3 percent in September. The decrease would been greater if there hadn't also been an increase in the number of people looking for work in the city, Digby noted.

Duluth's labor force, which includes Duluth residents who are working or looking for work, hit 47,173 in September, the highest point in at least 20 years.

Digby sees that increase in the city's labor force as a sign people are optimistic about the local economy.

"Between the combination of people looking for work and people apparently moving here to work, it's a real vote of confidence," he said.

That contrasts with other areas of the country where workers have become discouraged or given up finding a job, he said.

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"On the national level, labor force numbers spiked at the beginning of the recession," Digby explained. "Over the last three years, the labor force in Duluth has gone up 3.3 percent."

Other cities in the Northland also saw improved jobless numbers in September: Hibbing was 8.8 percent, down from 9.6 percent in August; Virginia was 8.9 percent, down from 10.3 percent; and Cloquet was 8.3 percent, down from 9.4 percent.

But a few areas saw increases. Unemployment rose from 10.3 percent to 10.6 percent in Grand Rapids and from 4.9 percent to 5 percent in Cook County as seasonal jobs ended.

"It's hard to complain about these numbers because they're pretty good, but it would be nice to see them one step stronger," Digby said. "There's still a lot of pain out there -- people who are unemployed, people who have been laid off a really long time, people who are still struggling."

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