MinnPost has been doing a series about the state of the Minnesota economy. Their third part ran today and includes a compelling comparison between the various regions and economic sectors of the state. The following excerpt may seem obvious, but sums up our problems here:
May’s job statistics tell mining’s story.
Unemployment in Duluth was 7.5 percent (not seasonally adjusted), just a hair lower than the statewide count. Head up to the Iron Range, though, and you find Hibbing with 14.6 percent; Virginia, 14.9 percent.
When the global recession set off a nosedive in steel orders, jobs plummeted on the Range. Duluth is faring better because it has diversified its economy since the last severe down cycle in the 1980s, said Drew Digby, regional analyst for the Minnesota Department of Employment and Economic Development (DEED).
Taconite mining companies have dramatically improved productivity since the 1980s and expanded their markets too. What they haven’t been able to do is shield their operations from sharp economic swings.
How is that HOPE and CHANGE workin for ya?