Throughout the slow economy, Mower County has stayed below state and national unemployment averages.

But effects of unemployment, fewer raises and tight pocketbooks haven't gone unnoticed in the area.

The latest numbers show that 655 people are unemployed in Mower County, according to the Minnesota Workforce Center. The unemployment rate in May was 3.1 percent, lower than Minnesota's statewide average of 3.8 percent and significantly lower than the 5.8 percent national average.

The average also decreased 0.9 percent from April to May in Mower County.

"Generally, it's one of the lowest in southeast Minnesota," said Diane Nagel, program specialist at the Austin Workforce Center of the unemployment rate. "Generally, it's always been rather low."

The Austin Workforce Center had noticed more people stopping in for its services, such as a computer terminals with job listings.

But other services haven't seen much change. A monthly class called Creative Job Services offers tips on resumes and interviewing, but hasn't seen more use in the past year.

"It's been pretty much the same," Nagel said.

Nagel said use of the center has fluctuated each month and that the downturn in unemployment may be due to temporary summer jobs, such as construction.

Still, the rate is 0.2 percent higher than it was in May 2002. Nagel said she would prefer to see it keep decreasing.

"If it dips at all, that's good news," she said.

Sandy Forstner, executive director of the Austin Area Chamber of Commerce, has noticed the economy's negative effect on local businesses.

"Beginning last year, in the mid-third quarter to the spring, the economy, particularly with the smaller retailers, they were soft. Some said sales were as poor as they had ever seen," Forstner said.

Forstner said unemployment may be affecting people's spending habits.

"For whatever reason, people are a little more cautious in their purchasing," Forstner said.

Where business is booming, however, is in mortgages, real estate and insurance, Forstner said.

Joe Fuhrman, of Fuhrman Real Estate in Austin, said he expects 400 to 500 real estate sales in Austin this year.

"The interest rates really helped us," Fuhrman said. "They're at all time lows. If you've talked to people, they've either refinanced their house or bought a house. The housing sector has not been slow, hardly anywhere in the country. Housing's keeping stuff going."

Although new purchases of homes are about the same, refinancing is in demand, he said.

Those trying to find a job often realize they need more education. In the past five years, Riverland Community College has seen a 20 percent jump in enrollment, said Danielle Heiny, Riverland director of admissions.

"We do feel it's definitely reflective of the economy," Heiny said.

Some programs have been so popular, students have been wait-listed. Construction electrician, carpentry, auto body, radiography and nursing all have had waiting lists recently.

The school tries to get the students into other classes until they can take the ones they want, Heiny said. Heiny encourages people to register early to get into the programs they want to pursue.

Those unsure if getting a degree is right for them can apply for a grant to pay for tuition and books for a class up to five credits.

"For people coming back to school, it's a great way to try a class for free," Heiny said.

The grant, from the Alliss Grant Foundation is available for people who have been out of high school for seven years, or haven't taken a college course for seven years and didn't earn a bachelor's degree.

Riverland, in conjunction with the Workforce Center, also hosts new direction sessions at places where employees have been laid off. During the sessions, workers received information about what job fields are in demand, financial aid and how they can enroll in a college.

"We did a lot of them," Heiny said of this year.

New direction sessions were held after Celestica lay-offs in Rochester and at Truth and Owatonna Tool Company in Owatonna, Heiny said.

But none have been held in Mower County.

Although the economy is not hurting county residents too badly, officials would still like it to keep improving.

"The last couple of months, there's been signs of improvement," Forstner said. "So, hopefully, that keeps up."

Cari Quam and Dan Fields can be reached at 434-2231 or by e-mail at :mailto:newsroom@austindailyherald.com