♪ ♪ >> ERIC: THIS WEEK THE CITY OF MINNEAPOLIS ESTIMATED A $700 MILLION COST FROM OPERATION METRO SURGE, A SIGNIFICANT JUMP FROM THE CITY'S EARLIER PROJECTIONS.

A RECENT STATE JOBS REPORT SAW AN INCREASE WITH A STEADY UNEMPLOYMENT RATE.

THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT - KNOWN AS DEED - HAS BEEN FOCUSING ON LOCAL AND SMALL BUSINESSES IN THE AFTERMATH OF METRO SURGE AND HERE WITH MORE, MINNESOTA DEED COMMISSIONER MATT VARILEK.

WHY THAT FOCUS?

>> WELL, WE KNOW THAT METRO SURGE, OF COURSE, CAUSED A LOT OF FEAR IN THE COMMUNITY.

IT CAUSED A LOSS OF LIFE AND IT CAUSED ECONOMIC IMPACTS.

A LOT OF WORKERS WHO WERE FEARFUL OF BEING PICKED UP WITHOUT REGARD TO THEIR LEGAL STATUS COULDN'T GO TO WORK AND THAT HAD ALL SORTS OF RIPPLE EFFECTS, CONSUMERS AFRAID AS WELL.

SO THAT WAS A HIT TO OUR ECONOMY AND THOSE RIPPLES CONTINUE.

SO DURING METRO SURGE, THE GOVERNOR DECLARED SHOP LOCAL MONTH AND WE LAUNCHED OUR SHOP LOCAL STAND TOGETHER EFFORT TO ENCOURAGE MINNESOTANS, WHEN YOU'RE SPENDING YOUR DOLLARS, SPEND THEM ON A LOCALLY-OWNED BUSINESSES SO THOSE DOLLARS STAY HERE AND CIRCULATE.

HERE WE ARE SEVERAL MONTHS LATER, SOME OF THE RIPPLE EFFECTS ARE WITH US AND NOW WE HAVE HIGH GAS PRICES AND HIGH INPUT COSTS FOR RESTAURANTS AND ALL SORTS OF BUSINESSES.

SO THERE ARE STILL CHALLENGES.

AND, THUS, WE'VE NOW LAUNCHED WHAT WE CALL CHOOSE MINNESOTA, AND THAT IS THE LONGER-TERM CONSUMER-ORIENTED EFFORT TO HELP US HELP OURSELVES Y SHOPPING LOCAL.

>> Cathy: I'M WONDERING WHAT YOU MADE OF THAT $700 MILLION FIGURE THAT WAS RELEASED BY MINNEAPOLIS.

IT SEEMS LIKE THAT'S PRETTY DARN HIGH AND I'M CURIOUS AS TO WHAT YOU THINK OF IT.

>> WELL, IT LWAYS DEPENDS EXACTLY WHAT YOU'RE COUNTING.

BUT I HAVE NO, YOU KNOW, QUESTIONS ABOUT THE METHODOLOGY NECESSARILY.

AND THERE ARE A WIDE VARIETY OF ESTIMATES THAT HAVE BEEN DONE.

AND, IN FACT, OUR AGENCY HAS HELPED TO BRING TOGETHER SOME OF THE FOLKS DOING HOSE ESTIMATES.

THE BOTTOM LINE IS, THEY'RE ALL BAD, THEY'RE ALL NEGATIVE.

AND THEN WE SEE THOSE IMPACTS AS WELL IN THE NUMBERS THAT WE TRACK AT OUR DEPARTMENT.

I THINK YOU MENTIONED THE UNEMPLOYMENT RATE, MINNESOTA TRADITIONALLY HAS AN UNEMPLOYMENT RATE BELOW THE NATIONAL AVERAGE, WHICH WE'RE PROUD OF, UT AT THE SAME TIME AS METRO SURGE, OR THE IMPACTS OF IT BEING FELT, OUR RATE WENT ABOVE THE NATIONAL RATE, WHICH IS OUT OF THE ORDINARY, AND I WOULD ATTRIBUTE TO METRO SURGE.

>> Eric: WITH GAS PRICES AND OTHER FACTOR, IT'S PRETTY EASY TO SEE THAT MINNESOTA CAN'T ESCAPE THE GLOBAL ECONOMY.

FAIR ENOUGH?

>> ABSOLUTELY.

AND IN FACT, WE'RE PROUD THAT WE DO A LOT OF TRADING WITH THE WORLD.

WE GO ON THESE TRADE MISSIONS AND WE HAVE THE MINNESOTA TRADE OFFICE IN OUR DEPARTMENT TO HELP MINNESOTANS EXPORT.

SO IT CAN BE A GREAT BENEFIT BUT, OF COURSE, THE TARIFFS HAVE BEEN A MAJOR CHALLENGE AND NOW THE IMPACTS OF THE WAR IN IRAN ON THE GAS PRICES.

>> Eric: WELL, I WAS LOOKING AT SOME FIGURES TODAY.

AND THERE'S A $22 BILLION AG ECONOMY IN MINNESOTA.

>> YEAH, ABSOLUTELY.

>> Eric: THAT SEEMS SO ENORMOUS.

HOW ARE THE FARMERS AND THE AG SECTOR DOING?

>> WELL, I WAS JUST TALKING TO MY GOOD FRIEND, COMMISSIONER THOM PEDERSEN, WHO COULD PROBABLY ANSWER THAT BETTER, BUT WE ALL SAW THE ISSUE WITH SOYBEAN FARMERS HAVING WORRIES ABOUT WHERE THEIR CROP WAS GOING TO GO BECAUSE THE CHINESE HAD STOPPED BUYING THEM.

SO THAT'S JUST ONE EXAMPLE.

AND THEN THE INPUT COSTS FOR FERTILIZER, FUEL, AND I LIVE IN GREATER MINNESOTA, NEAR SOME OF THOSE FARMERS AND WE DRIVE FARTHER DISTANCES OUT THERE SO THOSE ENERGY PRICES HIT HARDER.

>> Cathy: YOU KNOW, GETTING BACK TO METRO SURGE FOR JUST A MOMENT.

I'M WONDERING, THERE WAS THE BILL AT THE LEGISLATURE THAT FAILED TO PASS THAT WOULD HAVE OFFERED SOME RELIEF TO BUSINESSES BE AFFECTED BY THE I.C.E.

IMMIGRATION SURGE.

AND I'M WONDERING, BECAUSE IT DIDN'T PASS, IS THERE ANY MECHANIC AT ALL ON THE STATE LEVEL TO -- NESM AT ALL ON THE STATE LEVEL TO HELP BUSINESSES.

MECHANISM.

>> THAT IS PARTLY WHY WE'RE DOING THE CONSUMER CAMPAIGN OF CHOOSE MINNESOTA BECAUSE WE DON'T HAVE ADDITIONAL FINANCIAL RESOURCES AND I'VE SAID THROUGHOUT THAT WE WOULD BRING TO BEAR EVERYTHING THAT WE HAVE ACCESS TO NOW.

I MEAN, WE DO HAVE A NUMBER OF KIND OF BUSINESS CONSULTING RESOURCES THAT WE CAN HELP WITH.

>> Cathy: ANY GRANTS OR LOANS?

>> NOTHING NEW.

WE HAVE EXISTING PROGRAMS OF THOSE VARIETIES BUT NOTHING NEW AND ADDITIONAL.

AND, SO, I WISH WE HAD MORE.

AND THAT'S WHY THE GOVERNOR PROPOSED THE $10 MILLION PARTIALLY FORGIVABLE LOANS, AND IN THE LEGISLATURE THERE WERE PROPOSALS TO THAT EFFECT AS WELL.

BUT THAT DID NOT SURLIVE AND MAKE IT THROUGH THE FINAL NEGOTIATIONS.

SURVIVE.

>> Eric: AND WE WELCOME AN 18th FORTUNE 500 HEADQUARTERS.

>> THAT WAS SOME GOOD NEWS THAT WE WERE HAPPY TO SEE.

TWO YEARS AGO I THINK IT WAS, WE ADDED SOLVENTUM, THE HEALTHCARE SPINOUT OF 3M, NOW THE 18th WITH API IN NEW BRIGHTON.

AND IF YOU LOOK AT MINNESOTA ON A PER CAPITA BASIS, WE HIT WAY ABOVE OUR WEIGHT IN TERMS OF THE PRESENCE OF THOSE HEADQUARTERS HERE.

SO THAT'S WHY WE ARE KNOWN AS THE HEADQUARTERS ECONOMY.

WE'RE PROUD OF OUR SMALL BUSINESSES, TRYING TO HELP THEM AND OF THOSE LARGE COMPANIES AS WELL, AND IT ALL ADDS UP TO A STRONG AND POWERFUL ECONOMY HERE, DESPITE THOSE HEADWINDS THAT WE FACE RIGHT NOW.

>> Cathy: WHEN DO YOU THINK THE UNEMPLOYMENT NUMBERS MIGHT GET A LITTLE BIT BETTER IN MINNESOTA?

>> WELL, I HATE TO SPECULATE.

SO THE LAST ONE THAT WE RELEASED WAS THE APRIL NUMBERS, WE'RE ALWAYS ONE MONTH BEHIND, AND THERE WE SAW NUMBERS KIND OF GOING IN OPPOSITE DIRECTIONS.

WE STILL SAW SOME DOWNWARD TRENDS FROM METRO SURGE, BUT THERE WAS A 15,000 NUMBER INCREASE IN THE TOTAL NUMBER OF JOBS.

WHICH WAS QUITE A SPIKE.

SO MAYBE THAT WAS AN EARLY SIGN OF RECOVERY, WE ARE HOPEFUL THAT WE'LL SEE MORE OF THAT AND I THINK IT'S NEXT THURSDAY THAT WE'LL HAVE OUR NEXT REPORT.

>> Cathy: GOOD.

HE SAID WE'LL