772 jobs lost

in New Ulm

Loss occurred from first quarter of 2001 to first quarter of 2003

By KEVIN SWEENEY

Journal Editor

NEW ULM -- New Ulm has suffered the steepest loss of jobs in the Region Nine area over the last two years, according to statistics released last week by the Minnesota Department of Employment and Economic Development (DEED).

New Ulm lost 772 jobs from the first quarter of 2001 to the first quarter of 2003, according to the statistics, falling from 9,767 jobs to 8,995.

DEED considers every job whether it be full time of part time in its report.

New Ulm's employment had grown by 428 the previous year, from 9,439 in the first quarter of 2000 to a high of 9,867 in the fourth quarter. The number of jobs began a gradual decline, to 9,266 in the first quarter of 2002, then showing a bounce in the second and third quarters of 2002. The number fell most precipitously from the fourth quarter of 2002 (9,350) to the first quarter of 2003 (8,995).

New Ulm's job losses come mostly in the manufacturing sector, which lost 581 jobs in the three-year period. Retail trade showed the next-highest loss with the loss of 105 jobs.

Two sectors of the local economy showed increases. Health care and social assistance provided 125 new jobs, and Accommodation and Food Services showed an increase of 89 jobs.

Brenda Miller, a regional analyst with DEED, said New Ulm's job market is heavily dependent on manufacturing, which accounts for about 30 percent of New Ulm's jobs. That's about double the state average of 15 percent.

While manufacturing employment has been a strength in New Ulm, providing nearly 3,000 jobs in 2001, with average wages of $700 per week, it is also the sector that has suffered the most across the state and the country during the economic recession that has affected the country. New Ulm's manufacturing industries are also among the hardest hit, electrical equipment (down 295 jobs, 24 percent) and machinery manufacturing (down 54 jobs, 38 percent).

Mankato was the biggest leader in Region Nine, up 678 jobs from 2001 to 2003. Smaller cities rounded out the top five -- LeCenter (up 319 from 1,123 to 1,442), Blue Earth (up 254, from 2,549 to 2,803), Springfield (up 128, from 1,077 to 1,205) and Henderson (up 128, from 137 to 265).

Following New Ulm on the cities losing the most jobs were LeSueur (down 537, from 3,318 to 2, 781), Lime Township in Blue Earth County (down 197, from 503 to 306); North Mankato (down 193, from 7,415 to 7,222) and Waseca (down 193, from 6,814 to 6,621).

New Ulm Economic Developer Brian Tohal said he was surprised by the number of lost jobs, but feels there was little New Ulm could have done. "These changes have been incremental, over a large number of employers. We haven't lost a major employer. We are heavily reliant on manufacturing jobs, and manufacturing overall has lost a lot of jobs. In a down, economy, there's not a lot we can do."

Tohal said figures for New Ulm and Mankato are "exactly why Mankato should not be included in the JOBZ (Job Opportunity Building Zone) program. They are already gaining jobs without the JOBZ."

Brown County is part of a JOBZ application group that is seeking state approval for participation in the program, that wants to exclude Mankato from the zone. Mankato is working with Region Nine on another JOBZ application that would include the city.

The JOBZ program will offer different types of tax exemptions over a 12-year period for existing or new businesses that commit to extensive expansion and employment increases.

Tohal feels the JOBZ program would provide significant incentives to create more jobs in New Ulm.