In June, unemployment held steady in southern Minnesota, but July numbers could double with the temporary closing of Farmland Foods, experts say.

Friday, July 27, 2001

In June, unemployment held steady in southern Minnesota, but July numbers could double with the temporary closing of Farmland Foods, experts say.

&uot;In June, the unemployment rate in Freeborn County was 3.4 percent. That’s about 600 people,&uot; said Joe Kurtzman, area manager of job services for the Minnesota Workforce Center. &uot;If you add to that the 500 employees of Farmland Foods, that nearly doubles your rate.&uot;

Low June unemployment rates will help soften the blow – experts consider 4 percent unemployment to be full employment – but the rate is likely to hover over 4 percent for at least a year, Kurtzman said.

Jobs are available in the area, but it can be difficult to match jobs with hundreds of similarly skilled unemployed people, he said. Available jobs also may not pay as much as Farmland employees need to maintain their lifestyles.

Service industries suffer alongside the unemployed, he said. Everyone from medical providers to retail sales will see a decreased demand for their services while the local economy stabilizes.

&uot;It will probably be a year before you see the unemployment rate go back down,&uot; Kurtzman said.

Out-of-work Farmland employees will be absorbed by the local workforce through openings and retraining, but it will take a while, he said.

&uot;I guess the challenge to the area is to try to keep all the employees there,&uot; he said.

The Numbers:

&160;County

&160;June 01

&160;May 01

&160;June 00

&160;Blue

Earth

&160;3.0

&160;2.3

&160;2.6

&160;Freeborn

3.4

3.3

3.8

&160;Mower

3.9

3.4

3.7

&160;Steele

4.1

3.6

3.7

Waseca

3.4

3.2

3.5

&160;Minnesota

3.9

3.4

3.7

&160;US

4.7

4.1

4.2