Recession casts shadow over legislative session

State jobs data confirm what thousands of out-of-work Minnesotans already knew: the state is experiencing a major economic slowdown — the worst since 2001. Minnesota lost 2,300 jobs in December, for a total of 23,000 jobs lost in the past six months.

"Minnesota is in a recession," state economist Tom Stinson told the Star Tribune. "I don\’t see how you can label it anything else."

The state\’s December unemployment rate is 4.9 percent, while the national unemployment rate hit a two-year high of 5.0 percent.

Minnesota AFL-CIO president Ray Waldron commented: "With unemployment up and jobs down, maybe Gov. Pawlenty will learn that no new investments in Minnesota means no new jobs! Solid investments in transportation and infrastructure that could have created thousands of new jobs in our state stopped at his desk in 2007. Now 4.9 percent of working Minnesotans can\’t find jobs.

"I challenge the Governor to work with Minnesota\’s legislature, its employers and its working people to create the good jobs that Minnesota needs."

When the latest economic forecast comes out later this month, the state is expected to face a budget shortfall of more than $300 million.

Adapted from an article that appeared in the Minneapolis Labor Review.

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