Prices

 

From Reuters, September 16, 2016

"U.S. consumer prices rose more than expected in August as healthcare costs recorded their biggest gain in 32-1/2 years, pointing to a steady build-up of inflation that could allow the Federal Reserve to raise interest rates this year.

The cost of living last month was also pushed up by sustained increases in rents. The uptick in inflation is likely to be welcomed by Fed officials when they gather next week to deliberate on monetary policy, though a rate hike is not expected at that meeting.

"The economy may not be firing on all cylinders, but growth is enough to spark a little more inflation than we thought. The Fed decision is going down to the wire," said Chris Rupkey," chief economist at MUFG Union Bank in New York.

The Labor Department said on Friday its Consumer Price Index increased 0.2 percent last month after being unchanged in July. In the 12 months through August, the CPI increased 1.1 percent after advancing 0.8 percent in the year through July.

The so-called core CPI, which strips out food and energy costs, rose 0.3 percent last month, the biggest increase since February, after gaining 0.1 percent in July.

Economists had forecast the CPI nudging up 0.1 percent last month and the core CPI gaining 0.2 percent. The core CPI increased 2.3 percent in the 12 months through August after rising 2.2 percent in the year through July."    

 

Jobs and Unemployment

 

From the Minnesota Department of Employment and Economic Development, September 15, 2016

"Employment in Minnesota fell by 1,500 jobs in August, according to seasonally adjusted figures released today by the Minnesota Department of Employment and Economic Development (DEED).

The agency said the state has added 40,629 jobs over the past year, a gain of 1.4 percent. U.S. job growth in the past 12 months was 1.7 percent.

The state's seasonally adjusted employment rate in August climbed 0.1 percent from the previous month to 4 percent. The U.S. unemployment rate was 4.9 percent.

"Job growth over the past year indicates the Minnesota economy is expanding at a healthy pace," said DEED Commissioner Shawntera Hardy. "Seven of the state's 11 major industrial sectors added jobs in the last 12 months, and other economic measures point to continued growth."

Trade, transportation and utilities led all sectors in August with 2,300 new jobs. Other sectors gaining jobs were education and health services (up 700), government (up 600) and information (up 500). Logging and mining held steady.

The following industries lost jobs in August: construction (down 1,900), other services (down 1,100), manufacturing (down 1,000), financial activities (down 700), leisure and hospitality (down 700), and professional and business services (down 200).

Over the past year, education and health services led all sectors with 21,590 new jobs. Leisure and hospitality added 9,039 jobs, followed by trade, transportation and utilities (up 5,677), construction (up 5,087), financial activities (up 1,728), professional and business services (up 1,217), and government (up 327).

The following sectors lost jobs in the past 12 months: information (down 2,174), logging and mining (down 1,147), manufacturing (down 511) and other services (down 204)."

 

Income

 

From MPRNews, Jon Collins, September 15, 2016

"Wages across Minnesota are finally showing signs of recovering from the Great Recession. Census data released Thursday show increases in median household income last year across most demographic groups, although racial disparities in the state persist.

Median income for all Minnesotans increased by about $2,000 between 2014 and 2015, when it rose to an estimated $63,488. The state median household income for 2015 is almost 14 percent higher than the national rate.

Minnesota state demographer Susan Brower said other states are also experiencing similar increases in household income. Household incomes in the state, however, have stagnated for years and have yet to reach pre-recession levels.

"It has been a slow recovery in terms of incomes, so that makes this release what we've been waiting for for some time, to see some of those incomes begin to rise," Brower said.

The data show gains for a broad swath of the state's population, including most racial groups.

"The picture overall for Minnesota does look very good," Brower said. The state saw "reductions in the number and the prevalence of poverty for children under 18, of working age people and older adults, as well as Minnesotans who identify themselves as American Indian, black or non-Hispanic white."

Black household income bounced back in 2015 after an alarming drop of almost $4,000 in 2014.

But disparities between racial groups still persist. While the median household income for whites is an estimated $66,979, median household income for black Minnesotans is less than half that, at $30,306."

 

Annual Meeting

From mandated sick leave and minimum wage, to product regulation and plastic bans, local government is venturing into areas historically left to state & federal government.

Join us for a panel of perspectives on what's next in local government regulation and its impact on retail.

Event Details:
2016 MnRA Annual Meeting
Minneapolis Marriott West - St. Louis Park
Thursday, October 13, 2016
11:30 a.m. - 1:00 p.m.

Investment (includes lunch):
Members & Invited Guests: $35
Member & Invited Guests Table: eight seats, $325
Elected officials: Contact MnRA to register.

RSVP:
Pre-registration required. Call (651) 227-6631 or register online now. Cancelations must be made before noon on October 7 for a refund. Substitutions accepted.

This event is open to members and invited guests. For information on attending contact MnRA at (651) 227-6631.  

 

Sick and Safe Leave

"St. Paul's small-business owners are taking different approaches toward the recently passed city ordinance requiring them to provide workers with a minimum amount of paid sick leave.

Some are ready with a plan in place; some already offer the perk at some level. Others are taking a wait-and-see approach - waiting for the city to issue promised guidelines and then seeing if they can make it work. Others are contemplating legal action.

The ordinance, signed into law on Sept. 9, requires employers to provide paid sick leave to all employees at a rate of one paid hour off per 30 hours worked. Employees may accrue a maximum of 48 hours of paid sick time per year, beginning the day they are employed.

Some businesses, like Workhorse Coffee Bar on University Avenue, already provide paid time off to their employees, co-owner Shannon Forney said. Businesses that already comply with the sick-leave requirements do not have to provide any additional paid hours off. Forney was part of a group that supported the ordinance. For Forney, it's difficult to say how much paid sick leave costs her, because the cost depends on whether her eight employees use the hours.

Some St. Paul businesses that do not offer paid sick leave are thinking about how to pay for it. Jimmy Fritz, owner of the Wedding Shoppe on Grand Avenue, said he's already had to make changes to his business because of rising personnel costs - and these have caused him to cut staff.

"It's cheaper to outsource to outside contractors," Fritz said. "We don't do alterations anymore because of the cost of personnel."

The ordinance, Fritz said, adds new challenges. He said he will also have to restructure the way he does appointments and that he can no longer hire college interns to help with design and web content. "We can't just raise prices. We're competing with the rest of the state as well as online. If you increase the cost of employees, then you will have less employees."

Others see the increased costs putting St. Paul's small businesses at a competitive disadvantage.

"We're disappointed we couldn't pass practical amendments similar to those in Minneapolis," said Matt Kramer, president of the St. Paul Area Chamber of Commerce, which lobbied against the measure. One of those Minneapolis amendments was a proposed exemption for businesses that have fewer than six employees. "They're impacted the most (in St. Paul) as compared to their peers across the river.""