Albert Lea sees bump in unemployment rate

Published 9:41 am Thursday, July 28, 2011

After a steady decrease in the unemployment rate during the last six months, Albert Lea saw a spike in its unemployment rate in June by a full percentage point.

According to new numbers released Tuesday by the Minnesota Department of Employment and Economic Development, Albert Lea’s unemployment rate increased from 7.1 percent in May to 8.1 percent in June.

But Dan Dorman, executive director with the Albert Lea Economic Development Agency, said he doesn’t see this as a sign for concern; in fact, it could be just the opposite.

Dan Dorman

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He pointed out that the labor pool actually increased by 85 people. The pool is at the highest it has been during the last year, which could be a sign that people who have been discouraged from searching for jobs in the past have now seen some form of hope that makes them want to enter the job market again.

It’s a trend he said that economists predict as the economy gets better.

“If you look statewide, you’ll see that start to happen as the economy improves,” Dorman said. “I see reason to be potentially hopeful, but I’m not going to say let’s have a parade. I see it as potentially hopeful.”

June could also bring more people into the workforce pool through high school and college graduations.

According to the data, there were only eight fewer people who were employed during June than in May.

The numbers are telling different stories in other cities across the state.

In Austin, rates increased from 6.2 percent to 7.1 percent, comparing May and June’s rates, but in this city the labor force only increased by 31.

In Owatonna, rates increased from 6.8 percent in May to 7.7 percent in June, but the labor force actually decreased by eight.

On the county level, Freeborn County’s unemployment rate increased from 6.6 percent to 7.3 percent in the last month; Mower County’s went from 5.4 percent to 6.2 percent; Steele County’s went from 6.3 percent to 7 percent; and Faribault County went from 6.9 percent to 7.6.

The labor force increased by 106 people across Freeborn County in June, by 43 people in Mower County and by almost 300 in Faribault County. In Steele County, however, the labor force decreased by 54.

The state unemployment rate also saw an increase comparing May to June at 6.4 percent to 6.9 percent.

The Department of Employment and Economic Development stated there were 15,662 people employed during June in Freeborn County, out of a potential labor force of 16,893. The labor pool in June had 500 more people than it did at the beginning of the year.