The Free Press, Mankato, MN

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    WellsConcrete

November 22, 2009

Several companies rehiring after months of cuts

Economists say hirings likely to continue waxing and waning

By Brian Ojanpa

MANKATO — The good news about Minnesota unemployment is that the bad news may be ebbing, albeit in fits and starts.

Although joblessness rates are inching downward, economists say hirings will continue to wax and wane before employment returns to pre-recession levels.

Several Minnesota companies, including Wells Concrete, are hiring again after months of job cuts.

“I think things are coming back a little bit,” said Greg Jacobson, manager of the Wells plant that is back to full strength — 280 workers — after January layoffs trimmed about 60 workers.

Moreover, the plant has hired a dozen or so new workers and plans to hire several more.

The situation is similar at the company’s new plant in Albany, which began hiring in June and has 60 on its payroll.

Albany plant manager and company Vice President Paul Nelson said an increase in work orders, helped by a downward reset of the company’s price points, allowed the firm to hire new workers and retain valued ones.

“Profit margins were lowered just to keep people busy and keep work coming in the door,” he said. “We could have laid off more, but chose to do some things to better our business and better our work climate to retain more experienced people.”

State firms such as 3M, Best Buy and Ecolab also report they are hiring again, as have local businesses including Immanuel St. Joseph’s Hospital and Jones Metal Products.

The hospital has recalled 80 of the 140 workers it laid off last spring, and Jones spokesperson Cheri Wencl said an increase in orders prompted that 95-employee firm to recall about a dozen employees.

Minnesota’s jobless rate fell to 7.3 percent in September, down from 8 percent in August as employers purged 7,900 workers and hired 5,600 others.

Dan McElroy, commissioner of the state Department of Employment and Economic Development, said that push-and-pull layoff/hiring scenario is vexing but is to be expected as Minnesota and the nation recover from the recession.

He said he was encouraged by September numbers showing that five of the state’s 11 industry sectors gained employment during the month.

However, state labor analyst Steve Hine cautioned that the September numbers likely will turn out to be an anomaly, due in part to the time of the year.

Hine said seasonal factors such as the start of the school year and the weather can drive numbers upward or downward and doubts that the jobless rate will remain as low as September’s.

He expects Minnesota’s unemployment rate to tick up, though not dramatically.

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