STRIKING WORKERS AROUND THE REGION, SHELETTA BRUNDIDGE SENDS US A MESSAGE FROM HOUSTON, AND MARY LAHAMMER DIVES INTO GUN REGULATION PROPOSALS AT THE LEGISLATURE.

>> CATHY: WE START TONIGHT WITH ECONOMIC NEWS.

NUMBERS OUT THURSDAY SHOW MORE MINNESOTANS WORKING IN JANUARY THAN DECEMBER.

FOR THE SECOND MONTH IN A ROW, WAGE INCREASES OUTPACED INFLATION.

AND THE JOBLESS RATE STAYED STEADY AT 2.7%.

NO ONE IS HAPPIER TO DIVE INTO THESE NUMBERS THAN OUR NEXT GUEST.

LOUIS JOHNSTON TEACHES ECONOMICS AT THE COLLEGE OF ST. BEN AND ST. JOHN'S UNIVERSITY.

WELCOME BACK, PROFESSOR.

>> THANK.

>> Cathy: OKAY, WE ADDED 3,000 JOBS AND STEADY OB GROWTH.

WHAT DOES THAT SAY ABOUT THE MINNESOTA ECONOMY?

>> STEELD' AS WE GO.

IT'S REALLY GOOD, AND THE NATIONAL NUMBERS CAME OUT TODAY FOR FEBRUARY AND THEY SAY THE SAME THING, WHICH BASICALLY IS THAT UNEMPLOYMENT IS AT HISTORICALLY LOW LEVELS, BOTH IN THE NATION, AND ABOUT A PERCENTAGE POINT LOWER FOR THE STATE.

THE THING THAT REALLY SURPRISED ME LOOKING AT THE STATE NUMBERS WAS THAT PRETTY MUCH EVERY SECTOR HAS OB GROWTH.

IT ISN'T LIKE SOME RE OING REALLY WELL AND SOME ARE NOT EEL.

IN JANUARY, THERE WAS SOME SHRINKAGE IN MINING AND MANUFACTURING BUT ON A YEAR-TO-YEAR BASIS, THEY'RE ALL KIND OF EXPANDING NICELY, WHICH IS REALLY GOOD NEWS.

>> Eric: IT'S KIND OF FLOPPED ON ITS HEADS FROM LAST COUPLE YEARS, HOURLY WAGES UP 5%, INFLATION JUST 3%.

>> EXACTLY.

AND SO FINALLY PEOPLE ARE GOING TO FEEL A LITTLE BIT OF GAIN IN THEIR PAYCHECK RATHER THAN SAYING, OH, MY GOSH, STUFF'S TOO EXPENSIVE, I'M NOT KEEPING UP.

WE'RE GOING SOME THAT NOW AND I THINK THAT'S ONE OF THE REASONS WHY YOU'VE GOT LABOR ISSUES GOING ON IN SOME OF THE DIFFERENT SCHOOL DISTRICTS AND WITH THE UBER DRIVERS AND THINGS LIKE THAT IS BECAUSE WORKERS NOW HAVE SOME LEVERAGE.

>> Eric: BUT CRASHED DEBT, GROCERY PRICES, INSURANCE, PROPERTY TAXES, CHILD CARE, THAT STUFF STILL HITS PEOPLE WHERE THEY LIVE.

>> ABSOLUTELY AND THAT'S SKILL 3 AFTERSHOCK OF WHAT WE WENT THROUGH.

WE WENT THROUGH THIS, YOU KNOW, UNNATURAL DISASTER OVER THE LAST TWO, THREE YEARS, AND ESSENTIALLY THE INSURANCE PREMIUMS AND GROCERY PRICES, THOSE ARE STILL KIND OF LIKE THE AFTER-SHOCKS OF ALL THAT.

>> Cathy: SO LET'S LOOK AT AN AGING WORKFORCE AND PEOPLE WHO ARE RETIRING, WHO'S COMING UP BEHIND THEM?

>> THAT'S THE QUESTION.

I'M ONE OF THOSE WHO'S AGING, RIGHT NOW, SO I'M 63 BUT WE'VE GOT A OT OF US WHO ARE IN THAT AREA WHERE WE COULD QUIT NOW BUT A LOT OF US ARE PROBABLY GOING TO GO TO 70.

SO THAT'S ONE OF THE THINGS WE'RE GOING TO DO IS WE'RE GOING TO WORK LONGER THAN OUR PREDECESSORS DID.

WHO'S COMING UP BEHIND US?

WELL, THERE'S A COUPLE OF THINGS.

WE'VE GOT PEOPLE WHO ARE COMING FROM ABROAD, WE HAVE IMMIGRATION, THAT'S ACTUALLY BEEN A BIG HELP IN TERMS OF KEEPING OUR WORKFORCE UP.

I THINK THE OTHER THING, THOUGH, IS NOT EVEN WORKERS BUT RIGHT NOW THERE IS A EAL QUESTION THAT EMPLOYERS ARE ASKING IS, DO WE NEED TO HIRE WORKERS OR SHOULD WE MAYBE AUTOMATE SOME OF THIS STUFF?

SHOULD WE TAKE ARTIFICIAL INTELLIGENCE, SHOULD WE TAKE MECHANIC NAGS.

YOU GO TO McDONALD'S, THERE'S NOBODY THERE TO TAKE YOUR ORDER, IT'S JUST TOUCH BAD.

EVERY BUSINESS IS ASKING THAT QUESTION.

HOW CAN WE SUBSTITUTE AWAY FROM WORKERS AND TOWARDS CAPITAL.

>> Eric: I DON'T KNOW IF YOU CAN MEASURE THIS, BUILT DOES CEO PAY INCREASES, DOES THAT SKEW THE WAGE DATA?

>> IT DOES SOMEWHAT BUT DEPENDS ON HOW THEY GET PAID.

A LOT OF THEM GET PAID THROUGH STOCK OPTIONS SO THAT DOESN'T END UP SKEWING IT.

>> Cathy: I WANT TO GO BACK TO AUTOMATION AND A.I., THEN, AS THIS TAKES HOLD HIM WHAT DOES THAT DO TO THE FUTURE FOR WORKERS?

DOESN'T SEEM THAT GREAT.

>> I THINK IT'S A REALLY BIG ISSUE THAT WE AREN'T TALKING ABOUT ENOUGH BECAUSE, ON THE ONE HAND, ARTIFICIAL INTELLIGENCE, AUTOMATION AND THINGS LIKE THAT, CAN BE COMPLIMENTARY FOR WORKERS IN THE SENSE THAT WORKERS WHO HAVE CERTAIN SKILLS CAN USE THOSE TOOLS AN DO EVEN BETTER THAN THEY'RE DOING NOW.

ON THE OTHER HAND, IT CAN BE A SUBSTITUTE.

IT CAN TAKE JOBS AWAY FROM CERTAIN PEOPLE AND SO WE'VE GOT BOTH OF THOSE THINGS POTENTIALLY HAPPENING IN THE NEXT, NOW, TO THE NEXT TEN YEARS.

>> Eric: AND OUR INSTITUTIONS REALLY AREN'T GRAPPLING WITH THAT YET.

>> NO, THEY'RE NOT THINKING ENOUGH ABOUT IT.

>> Eric: AND I DON'T THINK GOVERNMENT CAN KEEP PACE WITH IT.

>> >> NO, WE'RE ALWAYS HYPED.

WE WERE BEHIND A HUNDRED YEARS AGO WHEN ELECTRICITY WAS RIP HIM THROUGH AND CHANGING THE FACTORY.

WE WERE BEHIND IN COMPUTERIZATION -- WE'RE ALWAYS SLIGHTLY BEHIND ON THIS STUFF.

>> Cathy: SO WHAT WILL YOU BE WATCHING FOR HERE IN THE NEXT MONTH OR SO?

>> I'M GOING TO E LOOKING AT THE INFLATION NUMBERS.

I WANT TO SEE WHETHER THEY'RE ACTUALLY GOING TO GO DOWN BECAUSE RIGHT NOW I'M KIND OF AGAINST THE TIDE, I DON'T THINK THE FED IS GOING TO BE LOWERING INTEREST RATES THE WAY A LOT OF PEOPLE SEEM TO THINK THEY'RE GOING TO BE IN THE SUMMER BECAUSE THEY WANT TO GET INFLATION DOWN TO% AND UNLESS IT GETS DOWN THERE, THEY'RE NOT GOING TO LOWER INTEREST RATES.

SO THAT'S WHAT I'M GOING TO KEEP AN EYE ON.

>> Cathy: ALWAYS A LESS SURE.

THANK YOU SO MUCH.

WE APPRECIATE IT.