Minneapolis Fed: Employment to grow, unemployment flat in 2011

The Minneapolis Federal Reserve officials said Thursday that the region can expect an increase in employment and little change in unemployment rates in 2011. Businesses in the region are optimistic about an economic recovery, they added, and the Fed’s model for personal income showed an increase is expected in 2011.

“Optimism is back,” Toby Madden, regional economist at the Minneapolis Fed, said in a statement Thursday. “After two years of overall pessimism, businesses expect increased sales, employment and profits. In addition to the survey results, our statistical model predicts increases in income and employment.”

In a video presentation he said, “The mild economic recovery currently underway is expected to warm up in 2011.”

Rob Grunewald, associate economist at the Fed said that businesses are more hopeful for 2011. “Employment levels are expected to increase in all states in the district but unemployment numbers are expected to stay the same. Meanhwile small wage increases are expected.”

The Minneapolis Fed serves Montana, North and South Dakota, Minnesota Western Wisconsin and the Upper Peninsula of Michigan.

“In Minnesota expect the pace of employment growth to remain the same,” said Grunewald. “Unemplyment rates will remain above historical averages in all states” in the region.

Madden added, “According to the Minneapolis Fed’s forecast models, overall personal income should grow faster in 2011 than 2010. The largest gains are in Minnesota and South Dakota.”

Additionally, the economists said that the overall picture for agriculture in the region looks good.

Here are the video presentations the Fed put out this week: