Thursday, March 03, 2011

Minnesota Unemployment Down To 6.7%

More Minnesotans have gone back to work as seen by the Minnesota Unemployment rate dropping to 6.7%. This is fantastic news as fewer people draw Minnesota Unemployment Benefits as we head into 2011. However this could change as cities, counties and Minnesota state governments look at laying off workers to reduce gaps in local budgets. In the coming weeks it will be critical to watch how the Minnesota legislature and Governor Mark Dayton choose to close the budget gap. This could come in two forms that will raise the Minnesota unemployment rate. One the state could lay off workers who they deem non-critical, obviously these workers would draw unemployment compensation for some period of time. Second cuts to LGA which is local government aid could cause Minnesota cities to also lay off workers who would then apply for unemployment benefits causing the rate to rise from 6.7% to an unknown number. Lastly projects could be cut at the state, county and city level making other workers vulnerable. So drink the champagne quickly as the celebration of a 6.7% unemployment rate could be short lived.