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Metal mining Is actually a Surprisingly Little Source of Jobs and Income

Despite enormous losses of jobs in iron mining and processing in Minnesota generally and on the Iron Range in particular, the non-iron sectors with the economic climate have continued to expand, diversifying the overall economy and building new sources of jobs and income. Consequently, average incomes increased 30 to 40 percent over and above inflation given that the collapse of metal market jobs began in 1978. As real earnings from the iron sector fell by 65 to 75 percent in Itasca and Lake Counties, genuine earnings from the rest with the economy increased 65 to 75 percent. In St. Louis County, dominated by the Duluth metropolitan region, a 63 percent decline in genuine earnings in the iron sector was accompanied by a 21 percent expansion in real earnings outside with the industry. aggregate crusher

After periods of reasonably high unemployment rates on the Iron Range, the region has been approaching complete employment with unemployment rates in the four to 5 percent range and shortages of skilled workers are getting reported. Because of this of declines within the iron industry and  expansion in the rest with the economy, the relative importance of the iron industry as a source of revenue and jobs declined dramatically. By  2005, earnings in metal mining were the source of only two-tenths of one percent of total Minnesota personal earnings. In Itasca County the  dependence on iron mining has declined from 23 to 4 percent and in St. Louis County, from 13 to 5 percent. Lake County has the largest reliance on iron ore processing, and its dependence declined from 43 percent to 13 percent. feldspar crusher

The metal mining and processing projects proposed for the Iron Range will have a comparatively modest impact on residents for several reasons.  First, both the temporary construction workforce and the new workers are likely to have to come from outside the Iron Range because the region is approaching complete employment and the aging existing sector work force will also have to be replaced.

Second, the number of jobs directly associated with each of the proposed metal mining and processing projects is reasonably modest compared to the 11,000 job losses that the business has suffered over the last 25 years. The largest in the proposals, the Minnesota Steel Project in Itasca County, would employ 700 workers once it was operating at complete capacity. If all with the jobs were filled by residents of Itasca County this would represent a 3 percent increase in employment. But the facility would be near the St. Louis County border and within commuting distance from Hibbing. Consequently, the jobs are likely to be shared with much larger St. Louis County. Even when “multiplier” impacts are taken into account, the total employment impact is estimated to. be an eight and a half percent increase in Itasca County employment (although, again, most of these jobs would have to be filled by in-migrants or commuters). cement mill

Similarly, PolyMet Corporation’s proposed NorthMet Project within the Hoyt Lakes location of St. Louis County would hire 470 workers when operating at full capacity. This would add four-tenths of one percent to St. Louis County employment. Even with the multiplier impacts, producing a total of 1,000 jobs, the impact would be less than one percent of total employment, representing only about three months in the earnings growth seen in recent years.