We’ve just posted the January edition of State of the Economy. This is a monthly publication that pulls together key economic developments both locally and nationally. It also includes the most recent data available about referrals made by United Way 2-1-1.

A few highlights from our most recent issue:

• Both local and national unemployment rates remained steady in January at 10% (U.S.) and 7.4% (MN) respectively.
• Lender-mediated home sales averaged $124,000 in the Twin Cities in 2009 compared to $204,000 for traditional home sales.
• The Twin Cities’ housing inventory is down 22% from a year ago.
• Teenagers are experiencing the highest unemployment rates nationally (27%) while women and Asians are experiencing some of the lowest rates (8%).
• Weekly wages declined 1.6% in 2009 when inflation is factored in.
• TCF is ending its “Totally Free Checking” program. More than 1,000,000 accounts that were previously free will be charged a monthly maintenance fee beginning early this year.
• Target Corp. is opening fewer than 10 new stores this year, but is renovating 340 stores already in operation.
• UnitedHealth Group reported fourth quarter profits up 30% and profits for the year up 28%.
• United Way 2-1-1 made nearly 175,000 referrals for basic needs in 2009. More than one-third of these were for either emergency food or emergency shelter.

For more news on the local and national economy, read the full report (including graphics!) here. 

What is the state of your economy? What one issue has had the most impact on you, your family, or your work in the past year? What do you think the State of the Economy will be next year at this time? Let me know, and I’ll post selections of the answers I receive.

Andrea Ferstan, our intrepid reporter impact manager in the area of homeless prevention, recently helped out with the Wilder Homeless Study count—interviewing people about the unfortunate circumstance they have found themselves in. (Every three years Wilder Research issues a report on homelessness in Minnesota, based on headcounts and interviews. This invaluable report gives us information about the causes, effects and circumstances surrounding homelessness, including specific subgroups such as youth, veterans, and older adults.) 

She was kind enough to answer a few questions about her experience.

LP: So what exactly did the evening entail? Where did you go? How many people did you talk to, did you work in pairs, and how long did it take? 

AF: I went to Mission Lodge, a transitional housing program in Plymouth. I arrived at 5:00 p.m.  There were eight of us available to interview residents, including Wilder staff who had been there since at least 1:00 p.m. Everyone serving as an interviewer for the study is asked to watch a training video, review the interviewing tool in advance, and conduct one practice interview. This training and preparation ultimately ensures the integrity and clarity of the data. Residents are encouraged to participate in the study and are paid $5 for their time upon completion of the interview. Each interview is done individually, one interviewee and one interviewer, taking approximately 30 minutes.

We were all at tables in the dining area. Mission Lodge staff encouraged residents to participate, noting that this information would help inform efforts to improve and expand housing and services for homeless people. Residents generally approached us if they were willing to participate. Due to the large number of interviewers and possibly the timing of our shift, I only had the opportunity to interview two individuals.

LP: How did it make you feel?

AF: I enjoyed the opportunity to hear directly from these individuals about their challenges and successes. What is always frustrating in these situations is the need to strictly follow the interview questions which can at times be challenging when someone may need or want to just share their story. Asking someone to share a great deal of personal information with you, a stranger, also feels a bit uncomfortable, even when one knows that this is for a worthwhile purpose. In the end, I just felt extremely grateful to those who took the time to open themselves up one more time with the hopes of creating more opportunities, and possibly a better system from which they and/or others can achieve and maintain greater housing stability.

LP: What surprised you?

I wouldn’t say anything surprised me, though I am continually amazed at the capacity of the human spirit to overcome seemingly insurmountable adversities, particularly when there are people and resources that can serve as a hand up.

LP: What were you hoping that you wouldn’t see that you did?

One father noted that while he had temporary housing, his son could not stay with him, something which we know results in unaccompanied homeless youth.

LP: Do you think you’ll do it again three years from now?

Absolutely.

United Way recently announced $300,000 worth of special grants in the area of rapid re-entry housing.  I’m not sure

Andrea Ferstan, Community Impact Manager

exactly how that works, so I decided to get the skinny from one of our in-house experts, Andrea Ferstan, Community Impact Manager for Basic Needs.

Andrea: Rapid Re-housing is an innovative and cost-effective approach to secure stable housing for homeless families. Re-housing programs work with people who are recently homeless to help them quickly move into rental housing.

 Rapid Re-housing includes:

• Comprehensive screening of families to ensure success
• Support to locate and maintain affordable rental housing
• Short-term rental subsidies while the family transitions
• Connections to needed resources for families addressing multiple challenges such as health care or child care

 Is this something new in the Twin Cities?

 Andrea: Rapid Re-housing builds on the success of Rapid Exit, a proven best practice that started in Hennepin County. The Rapid Exit model includes:

1. Central screening of all families within three days of shelter admission to determine housing barriers.
2. Barrier rating (level of difficulty in getting and keeping housing).
3. Referral to a Rapid Exit nonprofit for immediate re-housing in the private housing market.

The Rapid Exit direct service staff have successfully been re-housing families with little to no (rental) subsidy until recently, when higher rents and a weakening job market have made this more difficult. In Hennepin County, 72% of families entering the shelter are aided through the Rapid Exit program and 95% of those families remain housed 12 months later. Savings to Hennepin County has been in the millions of dollars.

Rapid Re-entry builds on this model, adding temporary rental subsidies to help families get settled and back on their feet.

Given current economic realities and the scope of the recession, $300,000 doesn’t seem like a lot of money. How many people do you think United Way can help with $300,000?

Andrea: Greater Twin Cities United Way’s investment of $300,000, leveraged with other resources, will result in 414 families moving out of the shelter and into permanent housing. Greater Twin Cities United Way is hosting a Rapid-Re-housing event tomorrow (6/26/09). Learn more.