The Free Press, Mankato, MN

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    Unemployment

September 14, 2009

Area unemployment figures worse than rest of state

Region’s overall rates in middle of pack

By Tim Krohn

MANKATO — The Mankato region has a dubious recognition as new unemployment figures come out.

Unlike the rest of the state, the area saw a monthly increase in the newly unemployed.

And while all regions in the state have many more unemployed than they did a year earlier, the Mankato region’s increase is off the charts compared to the rest of Minnesota.

Layoffs in the manufacturing and construction trades in the nine county region accounted for the largest chunk of newly unemployed, but even health care shed a lot of jobs.

Those in the 50 to 59 age group accounted for the largest number of unemployment claims.

New claims for unemployment insurance in August were 1,556 in the nine county region, according to new figures released by the state Department of Employment and Economic Development. That was up from the 1,332 people who filed new claims in July in Region 9, but still below levels of January, February, March and June.

There were 467 Blue Earth County residents filing initial unemployment claims in August, significantly above the 332 filings in July.

The local numbers run counter to the statewide trend in which new claims are falling. In August, 28,835 people filed for unemployment statewide, down more than 5,000 from a month earlier.

And while all regions in the state had more newly unemployed than a year ago, the Mankato region’s jump in claims was far higher than any of the 10 other “economic development regions” in the state.

Region 9 had a nearly 174 percent increase in the number of new claims compared to August of 2008. Only two other regions in the state — the far southwest and northwest corners — had triple-digit increase in claims compared to last year.

The nine-county region had an unemployment rate in July of 7.5 percent, lower than six other regions in the state, but higher than four other regions.

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