Minn. unemployment increases

Since August, Minnesota’s falling unemployment rate has left state officials hopeful despite a national economic downturn.

But in October the state’s unemployment rate climbed to 7.6 percent, up from 7.4 the month before. Despite the slight rise, state officials said October’s numbers suggest a rebounding economy, since the number of temporary jobs is on the rise.

State officials said temporary hiring increased by 3,200 jobs in October, providing unemployed Minnesotans with solutions until further professional opportunities increase.

Temporary hiring is a sign that the state economy is shifting toward growth, said state market labor analyst Steve Hine in a response given by a spokeswoman.

Jo Iverson, marketing director for the Minnesota Department of Employment and Economic Development (DEED), said more people are becoming encouraged about the economy and are “jumping back into looking for a job.”

She noted that the state’s increase in temporary hiring provides many Minnesotans with employment alternatives.

“An increase in temp hiring is a good indicator that the economy is shifting,” Iverson said.

DEED expects it will take three years to regain jobs lost during the recession.

In a Nov. 19 press release, DEED Commissioner Dan McElroy said employment growth in temporary help is a signifier of economic recovery.

The October temp hiring upturn provided the largest month-to-month gain since 1990.

Minnesota’s unemployment rate is smaller compared to October’s national average of 10.2 percent, but statewide, residents continue to feel the hardships of a poor national economy.

Uros Jelicic, 36, of Mound, Minn., said many Americans are feeling the economic burdens of debt and increased taxes.

He said that although Minnesota’s unemployment rate is less than the national rate, residents aren’t spending what they used to.

“People are tightening their belts and lessening spending habits, especially in the service industry,” he said. “Times are tough for most Americans now.”

An October report shows industry employment in Minnesota has usurped job losses, with five of the state’s 11 industry sectors gaining jobs in the past month.

Minnesota’s 72.1 job participation rate, which totals the number of people of working age who are employed or unemployed but looking for work, is among the highest in the nation.

“People are pinching pennies right now,” Jelicic said. “Work is work is work.”