No comfort in numbers as the jobless rolls grow

The nation's staggering job-loss numbers in October came as no surprise to Kevin Kummala, who recently lost his warehouse job when his employer went out of business.

He's been looking for a job for nine months and keeps seeing more and more laid-off workers showing up at the Minnesota Workforce Center he's been going to in south Minneapolis.

The sea of job-seekers got much bigger last week, when seven Minnesota-based employers announced a total of 600 layoffs. Adding to the nation's highest unemployment rate in 15 years were pink slips from window maker Andersen Corp., semiconductor equipment firm Entegris, ammo maker Federal Cartridge, collectibles and tableware maker Lenox Group, the Canterbury Park racetrack, Regis Corp. beauty salons and Vital Images, which makes software for medical imaging.

Ford Motor Co., which reported a $3 billion quarterly loss Friday, said it will continue to cut its workforce and recently announced that it will shut the Ranger truck plant in St. Paul for the month of December, furloughing 770 workers. Cliffs Natural Resources Inc., formerly Cleveland-Cliffs, announced last week that it will "adjust" its 1,660-member workforce at three Minnesota taconite plants because steel demand was falling.

And officials at 3M Co. recently disclosed about 1,000 job cuts around the globe.

The local landscape is mimicking the national trend, as more companies crippled by the uncertain economy, petrified credit market and the slump in auto, housing and semiconductor sales let their workers go.

October jobless rate jumped

The nation's unemployment rate hit 6.5 percent in October after employers cut 240,000 jobs. "I was disappointed that it was larger than economists predicted or than most of us expected," said Dan McElroy, commissioner of the Minnesota Department of Employment and Economic Development. (DEED).

Minnesota doesn't report its October unemployment numbers until Nov. 20, but it's likely to be worse than September's rate of 5.9 percent. "I will be surprised if they are good, but not surprised if they are a little less bad" than the national figures, McElroy said.

In all, about 19,000 jobs vanished from Minnesota in the 12 months ended in September. State officials say 30,000 more could disappear in 2009.

Minnesota's nearly 50 workforce centers around the state are growing busier, DEED spokeswoman Kirsten Morell said. About 17,882 job-seekers used the centers in October, up from 16,278 in September.

By 10 a.m. Friday, at least 10 people waited in line to sign up for benefits at the center on Lake Street in Minneapolis. Kummala, who is looking for another warehousing job, browsed the center's latest list of employers looking to hire. He said that it's frustrating looking for work in this economy.

McElroy said he knows that a layoff can feel "like a death in the family." But he said some companies are hiring and a few need significant numbers of workers. Employers are hungry for operators who can run computer-controlled machines, do computerized drafting and handle specialized circuit board components that are "no bigger than a grain of pepper," he said.

McElroy said that even skilled job hunters should visit the workforce centers, because they can help them get organized. "We have a wonderful class called Creative Job Search," he said. "It will get full, but we'll run as many sessions as we can, and there are computer resources available."

In addition, McElroy said, some people may qualify for the Dislocated Workers Program, or for veterans services or other services. He suggests that job-seekers consider using websites such as iseek.org, Careeronestop.org and Minnesotaworks.net, which help match job applicants' skills with employers' needs. And McElroy advises anyone who has lost a job to sign up immediately for unemployment benefits.

Kathy Nelson, director of DEED's unemployment insurance division, said claims are rising. "We are seeing about a 30 percent increase in regular unemployment benefits, and then if you add the [13 weeks of extended benefits from the] federal Emergency Unemployment Compensation, it jumps to 80 percent over last year," Nelson said.

Minnesotans draw weekly unemployment benefits that range between $15.4 million and $18.7 million. Checks typically average about $330 a week, officials said.

Dee DePass • 612-673-7725