Minnesota ‘Recession’ Has Roots in Real Estate Slowdown

by Alex Stenback on January 16, 2008

Minnesota’s State Economist (who knew we had such a person?) says:

"Minnesota is in a recession," the state’s economist, Tom Stinson, said Tuesday after reviewing the latest jobs figures. "I don’t see how you can label it anything else."

And it’s the result of a job market that is unwinding quickly, led by housing and real estate related industries:

Minnesota has a disproportionate share of its workers tied to making windows, lumber, paint and other building materials. In an era of falling home sales, that has turned from an advantage to a problem for the Minnesota job market, Hine said.

Residential construction employment over the 12 months [of 2007] fell 14.1 percent. Building materials jobs dropped 8.9 percent and construction jobs other than housing fell 8.6 percent.

State Jobs Picture Turns Ugly [Startribune]

{ 2 comments… read them below or add one }

Glen Cunningham January 17, 2008 at 11:26 pm

So it had its roots in real estate, but that in itself wasn’t enough for it slide into a recession.

Glen Cunningham January 17, 2008 at 11:27 pm

So it had its roots in real estate, but that in itself wasn’t enough for it slide into a recession.

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