>> CATHY: WE HAVE GOT A FULL SHOW FOR YOU TONIGHT.

IN ADDITION TO OUR THANKSGIVING COOKING FUN, WE'LL TALK WITH "PIONEER PRESS" REPORTER FRED MELO ABOUT THE HISTORIC ST. PAUL CITY COUNCIL ELECTIONS.

POLITICAL SCIENCE PROFESSOR KATHRYN PEARSON IS HERE WITH AN UPDATE ON CONGRESS.

AND MARY LAHAMMER WILL SHOW US SOME POSSIBLE STATE FLAG DESIGNS.

>> ERIC: WE START TONIGHT WITH MINNESOTA'S RECORD JOB GROWTH IN OCTOBER.

MORE THAN THREE MILLION MINNESOTANS WORKED LAST MONTH, CONTINUING A TREND OF OUTPACING NATIONAL JOB GROWTH AS UNEMPLOYMENT TICKED UP SLIGHTLY AND THE LABOR FORCE SHRUNK.

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

PROFESSOR, RECORD NUMBER OF JOBS, BUT STILL A LOT OF "HELP WANTED" SIGNS.

WHAT GIVES?

>> WE'VE GOT BOTH GOING ON AT THE SAME TIME.

PEOPLE ARE GETTING INTO THE LABOR MARKET, THEY'RE LOOKING FOR JOBS, BUT BUSINESSES ARE DOING WELL AND THEY JUST CAN'T FIND THE HELP SO YOU'VE GOT BOTH THINGS GOING ON AT THE SAME TIME.

>> Cathy: DOESN'T IT DEPEND ON WHAT BUSINESSES WE'RE TALKING ABOUT?

>> DEFINITELY.

SO IF YOU TAKE A LOOK AT THE NUMBERS, WE HAD A LOT F GROWTH IN AREAS LIKE HOSPITALITY, CONSTRUCTION WAS A SURPRISE, A LOT OF THINGS IN THERE, BUT, FOR EXAMPLE, MANUFACTURING ACTUALLY FELL.

AND SOME OF THE OTHER AREAS LIKE THAT FELL.

SO IT'S VERY MUCH ALL OVER THE BOARD.

>> Cathy: WHO'S NOT BEING ABLE TO FIND WORKERS?

I MEAN, IS IT ONE SPECIFIC -- SEVERAL SPECIFIC AREAS OF THE ECONOMY OR IS IT JUST ACROSS THE BOARD?

>> IT'S ACROSS THE BOARD, BUT ESPECIALLY, FOR EXAMPLE, IN AREAS LIKE CHILD CARE, HEALTHCARE AIDES, THOSE KINDS OF AREAS WHERE IT'S KIND OF ABOVE THE MINIMUM WAGE BUT NOT REAL HIGH ABOVE, THAT SEEMS TO BE A REALLY TIGHT AREA.

>> Eric: WAGES KEEPING UP WITH INFLATION?

>> MOSTLY.

SO, AGAIN, THAT'S KIND F ACROSS THE BOARD.

WHAT'S INTERESTING THIS YEAR, ESPECIALLY, IS THAT PEOPLE AT THE LOWER END ARE ABLE TO KEEP UP BETTER THAN PEOPLE AT THE UPPER END.

SO THAT'S ACTUALLY COMPRESSING THE WAGE DISTRIBUTION A LITTLE BIT.

>> Cathy: INTERESTING.

SAY, I WAS NOTICING THAT EVIDENTLY WE ARE ON A GLIDE PATH TO A SOFT LANDING IN THE ECONOMY.

I THINK YOU SAID THAT.

EVERY TIME YOU'VE BEEN HERE.

>> I DON'T WANT TO -- >> Eric: DON'T JINX IT.

>> THANK YOU.

I COULD NOT THINK OF THE WORD.

YES, BUT THAT'S NOT HAT WE DON'T WANT TO DO BUT WE ARE.

AS THE INFLATION RATE CONTINUES TO COME DOWN, GRADUALLY, WE SEEM TO BE KEEPING UNEMPLOYMENT DOWN AROUND 4% OR BELOW, FINGERS CROSSED, WE SEEM TO BE DOING IT.

>> Eric: HOLIDAY SHOPPER, LOOKS LIKE A DOWNER FROM WHAT I READ.

>> NOT A DOWNER, BUT I THINK IT'S GOING TO BE PRETTY SLOW COMPARED TO LAST YEAR.

IT WILL GROW 3 OR 4% FROM WHAT WE CAN TELL.

>> Eric: IT'S A CONSUMER-DRIVEN ECONOMY, AND WHEN HOLIDAY SALES ARE LOW, HOW DOES THAT AFFECT THINGS?

>> WELL, IT'S CONSUMER DRIVEN, BUT IT'S VERY OVER THE COURSE OF THE YEAR.

SO IF YOU DON'T HAVE A REAT CHRISTMASTIME, THAT'S NOT GOING TO KILL THE ENTIRE YEAR.

PEOPLE SPREAD OUT THEIR PURCHASES MUCH MORE THAN THEY USED TO.

>> Cathy: BUSINESSES SAME -- I'M ASSUMING ARE OKAY WITH THAT?

>> THEY ARE.

BUT ONE OF THE THINGS THAW BROUGHT UP AT THE BEGINNING WAS THE LABOR SHORTAGE.

SO A LOT OF BUSINESSES, OR EXAMPLE, TARGET, THEY START HIRING EARLY, THEY STARTED GOING OUT THIS SUMMER AND EARLY FALL, GETTING THE LABOR FORCE THAT THEY NEEDED SO THAT THEY WOULDN'T HAVE TO GO OUT AT THE LAST MINUTE AND HIRE TEMPORARY PEOPLE.

SO, AT THIS TIME, THEY SEEM TO BE MUCH MORE READY THAN USUAL.

>> Eric: THE STORY IN THE PAPER ABOUT THE OFFICE SPACE.

ARE WE GOING TO SEE A BIG RESIDENTIAL PROPERTY TAX INCREASE?

>> WELL, THEY'VE GOT TO FIGURE OUT A WAY TO PAY FOR CITY SERVICES, GOT TO FIGURE OUT A WAY TO PAY FOR THESE THINGS, AND RIGHT NOW THE OFFICE REAL ESTATE, TAX ON OFFICE REAL ESTATE, IS THE ONE THAT BRINGS IN THE MOST MONEY AND WITH THAT GOING DOWN, WE'VE GOT TO FIGURE OUT ANOTHER WAY TO DO IT.

RESIDENTIAL MIGHT BE A WAY.

St. PAUL PASSED A SALES TAX TO FIGURE OUT HOW TO FUND ROADS AND THINGS.

MAYBE SOME KIND OF CITY SALES TAX MIGHT BE THE WAY TO GO IN MINNEAPOLIS, TOO.

>> Cathy: HEY, GETTING BACK TO THE WORKER SITUATION HERE, WITH MORE BUSINESSES LOOKING AT HAVING WORKERS COME BACK, THERE'S THAT -- STILL THAT QUESTION ABOUT, YOU KNOW, ARE WE HYBRID?

HOW ARE WE GOING TO BE FLEXIBLE TO EVERYONE'S NEEDS?

WHAT DO YOU HEAR ABOUT THAT?

>> I HEAR THAT BUSINESSES ARE REALLY TRYING TO BE PERSONAL ABOUT THAT.

SO, THEY'RE LOOKING AT THEIR WORKFORCE AND SAYING, WHAT'S GOING O WORK BEST, BOTH FOR US AS A BUSINESS AND FOR THEM AS PEOPLE.

SO, IN SOME SITUATIONS, IT'S REALLY IMPORTANT TO BE TOGETHER, TO BE ABLE TO TALK TO ONE ANOTHER AND RUN INTO EACH OTHER AND DO THINGS LIKE THAT, AND, SO, IF THOSE BUSINESSES ARE TRYING TO GET PEOPLE BACK.

ON THE OTHER HAND, IF YOU'VE GOT PEOPLE WHO ARE KIND OF SITTING IN THEIR CUBICLES AND THEY DON'T REALLY NEED TO TALK TO ONE ANOTHER, WHY NOT LET THEM WORK FROM HOME A DAY OR TWO OR THREE A WEEK.

THAT WORKS OUT FINE.

>> Eric: THE TEMPORARY BUDGET DEAL IN WASHINGTON DOES WHAT TO THE ECONOMY, IF ANYTHING?

>> WELL, AT LEAST IT ALLOWS US TO EXHALE.

BECAUSE WE DON'T HAVE TO WORRY ABOUT EITHER A GOVERNMENT SHUTDOWN OR SOMETHING WORSE LIKE A DEFAULT OR SOMETHING LIKE THAT.

WE'VE GOT SOME BREATHING ROOM UNTIL JANUARY AND FEBRUARY.

>> Eric: AND YOU'RE CONFIDENT SOMETHING WILL HAPPEN THEN?

>> I HAVE A FEELING THEY'RE GOING TO KICK THE CAN DOWN THE ROAD YET AGAIN.

>> Eric: THANKS FOR COMING OVER, PROFESSOR.

HAPPY HOL