Change in workforce stats unreliable

Published 12:00 am Thursday, February 27, 2003

A Minnesota Workforce Center analyst said a recent drop in Freeborn County’s labor force numbers in the agency’s statistics does not necessarily reflect a massive outflow of people, but may be a result of adjusted population estimates and other factors.

Research Analyst Brenda Miller addressed the issue at an Albert Lea Area Job Service Employer Committee Meeting Wednesday.

&uot;I don’t really have an exact reason. But, I don’t think this is the indication of any mass exodus,&uot; Miller said.

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The unemployment statistics shows the labor force in the county was 15,404 in December 2002. The number was down by 1,785 from December 2001.

But, Miller stated, &uot;The best of evidence doesn’t suggest 2,000 people have left the county.&uot;

The labor force consists of those who are employed and who are actively looking for a job.

One contributing reason could be an increase in those who are not seeking employment, possibly as a result of an aging population, Miller said.

The statistics are based on a survey from 800 samples across the state. The data are adjusted according to unemployment insurance claims, population growth and industry employment trends.

Miller pointed out the previous population projection was based on 1990 Census data, and using new 2000 data would deflate the numbers in the statistics.

The county’s unemployment rate has been steadily decreasing after a big leap after the Farmland Foods plant closure in July 2001, which put approximately 500 out of work. The unemployement rate was 4.4 percent last December, getting closer to the state average of 4.1 percent. January figures are not yet available.

The number of initial unemployment insurance claims also decreased to 1,981 last year from 2,228 in 2001. Miller said the claim is still increasing in most of the southeastern part of Minnesota, which suggests the labor market in Freeborn County is getting healthier.