Oil, gas and coal output is reportedly stable, with little new leasing or drilling. Copper and gold mine output is stable, though passage of an environmental initiative in Montana will limit new gold mining operations. Iron mines are finishing the year with output near earlier projections, but expect reductions in 1999 because of import competition. One Montana logging company will furlough 45 workers largely due to reduced demand in Asia. Employment, Wages and Prices Tight labor markets continue as a difficult problem for business.
Unemployment rates are low and largely stable in most parts of the district.
Even in Michigan's Upper Peninsula, usually the Ninth District's most sluggish labor market, unemployment has dropped below the national average. As before, employers report increases in starting wages and nonwage compensation, but there is little evidence of any sharp escalation in labor costs. Paul, hourly earnings in manufacturing are up about 2.5 percent from a year ago. There are few price increases at the producer or consumer levels. Gasoline is available at less than 90 cents per gallon in some areas, and red meat is often highly discounted in supermarkets.