Economy
East Metro Economic Indicators
In the East Metro, jobs are being lost, foreclosures are rising and working families are losing ground. During an economic crisis, counties provide assistance and programs that keep people fed, clothed, sheltered and safe. We’ve never seen anything like the current crisis: We’re seeing people in our shelters and food shelves who have never before asked for assistance. We’re seeing caseloads rise at staggering rates. Some of the community impacts of this recession are highlighted below.
Foreclosure
Emergency shelter is a real concern in the East Metro, as foreclosures, unemployment and rising rents drive the working poor from their homes. During the week of Dec. 3, Ramsey County was unable to find emergency shelter for 44 families, 184 children and 67 adults due to eviction, family issues and foreclosure. Average monthly income of families seeking shelter was $726.43. Twenty-four were two-parent families and 29 had not sought help before.
Foreclosures increased an astonishing 670.2% in Ramsey County from 2003-08.
Foreclosures in Dakota County rose more than 701% in the same time span.
Employment
Ramsey County’s 2008 unemployment rates were the highest in almost two decades. Ramsey County’s January 2009 unemployment rate was 7.5%. A worrisome shift has occurred in recent months: Historically, Ramsey County’s unemployment rate has tended to be lower than the state rate, which in turn tended to be lower than the federal rate. More recently, the rates have become closer, with the state and Ramsey County rates moving toward the higher national rates. Ramsey County’s 2008 unemployment rates were the highest since before 1990 (the oldest data available for counties). Visits to Workforce Solutions Resource Centers by residents seeking jobs increased 42%, and workshop attendance rose 98.7% from 2006-08.
In Dakota County, the unemployment rate increased from 4.9% in October 2008 to 6.1% in just two months. Visits to WorkForce Centers in Dakota County increased more than 46 percent from 2006-08. In 2008, centers in West St. Paul and Burnsville had 57,391 visits — up from 39,237 in 2006 when the Burnsville location had just opened mid-year.
Economic Assistance
Active public assistance cases in Ramsey County increased 12.8% 2004-08. Emergency assistance requests rose by 14% in October 2008, year over year. Food assistance requests have increased regularly over the past 10 years. Through October, the average monthly caseload was 16,612, 31.2% higher than in 2004. General Assistance cases increased 63.7% over the same period.
According to the latest figures available, 13% of Ramsey County residents — about 65,000 people — live in poverty. Nearly 1 in 5 children in the county, about 23,400 children, live in poverty.
Requests for public assistance in Ramsey County have risen by 34.4% from 2003-08.
Food stamp usage is steadily increasing in Ramsey County. The average monthly number of cases in 2008 was 16,612 families, 31.2% higher than in 2004.
In Dakota County, the number of food support cases has risen by 98 percent from April 2004 to April 2009.
During an economic recession more residents find themselves in need of county services, often on an emergency basis. At the same time, counties find it difficult to meet this sharply increased need because of declining revenues — including state and federal financial participation — levy limits, increased expenses and borrowing costs. Ramsey, Dakota and Washington counties stand ready to work with government leaders at all levels, nonprofit organizations, businesses and community groups to find creative ways to meet these challenges.
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