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Minneapolis Jobs
By admin | November 5, 2007
Despite being named on of the best metro-areas for business by a recent MarketWatch report, Minneapolis job growth is not what it used to be. As the number of available Minneapolis jobs decrease, the unemployment rate is beginning to climb. September Statistics show that the city’s jobless rate has now surpassed the national average. As 4.9 percent of the city’s citizens struggled to find work, the national unemployment rate dropped to 4.7 percent.
Throughout the country, 4.3 percent more people have been able to find employment since 2003. In the same time period, Minnesota employment has only increased by 2.4 percent. Some analysts say that the issue is not lack of Minneapolis job creation, but that the highly educated population is over qualified for a vast majority of the positions being created.Other’s blame the lack of new Minneapolis jobs to be had on the housing market slump and uninspiring retail sales.
The housing slump has had particularly negative side effects on the mortgage industry. In an effort to increase profit, GMAC Financial Services recently announced that they will be restructuring it’s mortgage operations, Residential Capital LLC (ResCap). Blaming the severe weaknesses in the housing market, ResCap plans to streamline its operations and revise it’s cost structure.
This will result in layoffs for 25 percent of the company’s employees, approximately 3,000 individuals worldwide, some of which will take place in Minneapolis. The majority of these reductions in staff are expected to take place before the end of the year. All eligible associates effected by the layoff will receive severance packages along with outplacement assistance.
Aside from layoffs, many of the city’s industries are experiencing slower than average job growth and have been doing so for some time now. One sector not effected by trickling job creation is healthcare. According to State Economist Tom Stinson, this is the one area in which Minneapolis job creation is fairing better than the rest of the nation.
According to Todd Klingel, the chief executive of the Minneapolis Regional Chamber of Commerce, high city taxes maybe deterring other large businesses from coming to the area. This could easily be effecting the creation of new Minneapolis jobs.
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