Banaian; St. Cloud Area Seeing Labor Growth

The St. Cloud area is seeing labor growth.  That according to St. Cloud Economist King Banaian, who joined me on WJON today.  He says the St. Cloud area has seen a number of workers come into the area through migration.  Banaian indicates the local labor work force is growing by a rate of 1.5%, which is faster than the population growth.  He says this is a positive trend for the area but the question is how long can that sustain.

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Gas prices are on the rise but Banaian doesn't expect that to be a trend.  He says the increase in gas prices is likely to be short lived.  He says the unrest in the middle east and Hurricane Milton have each contributed to the supply chain disruption. Banaian indicates Saudi Arabia has indicated they will make oil available if there is a slackness in demand.  He suggests prices may stay at this level through deer hunting opener weekend.

What becomes of the oil taken from the ground in western North Dakota?  Banaian says the majority of the oil is shipped on a pipeline to a refinery in Nebraska.  He says that oil doesn't end up in Minnesota but does stay in the plains states.  Banaian indicates Minnesota gets their oil from refineries in Chicago and/or Canada.

People are still traveling at normal to high levels.  Banaian indicates air travel continues to be high and hotel prices are maintaining normal levels.  He says customer credit is something he keeps a close eye on.  Banaian indicates last month less people were willing to use credit cards but one month isn't a trend.

If you'd like to listen to my conversation with King Banaian, it is available below.