Despite a recent increase in unemployment, joblessness is expected to drop again as companies hire extra workers to handle spring business, experts say.

Friday, March 02, 2001

Despite a recent increase in unemployment, joblessness is expected to drop again as companies hire extra workers to handle spring business, experts say.

The regional unemployment rate rose more than 1 percent in January to 3.82 percent, comparable to the state average of 3.9 percent. Freeborn, Waseca and Steele counties’ unemployment rose to 4 percent or greater, while Mower and Blue Earth Counties rested near 3 percent.

While higher than the December 2000 unemployment rate, percentages were not appreciably different than they were a year ago.

&uot;We are seeing a surplus of labor supply because there are a lot of large companies in the area that are downsizing,&uot; said Manpower, Inc. branch manager Mary Hacker.

As seasonal business demands increase this spring, Hacker said that number is expected to go down.

In a recent Manpower, Inc. employment outlook survey, 40 percent of local employers said they plan to hire additional staff this quarter, while 7 percent foresee labor cutbacks, Hacker said.

Nationally, only 28 percent of employers predicted spring labor force increases.

Most jobs available now are in service, durable goods manufacturing and construction areas, Hacker said. In the survey, transportation and public utilities, finance, insurance and real estate, education services and public administration employers said they expected to hire additional staff this spring.

The Manpower, Inc. employment outlook survey is conducted quarterly to measure employers’ intentions to increase or decrease the permanent work force. The survey is based on telephone interviews with nearly 16,000 public and private employers in 488 U.S. markets.