The Iron Range: A Tale of Two Industries

A Quick History about the Iron Range Region

In 2010, the Iron Range contributed more than $3 billion to Minnesota's economy. Mining also supported more than 11,200 jobs in the state. Nationwide, the Iron Range supports nearly 11 million jobs due the steelmaking and transportation of the iron ore produced. This accounts for roughly 16% of the United States' GDP for 2010. Iron mining corporations paid $152 million in 2011 for the state of Minnesota. $48 million went to local schools, University of Minnesota received $16 millions alone. Mining contributes about 30% of the GDP in the Arrowhead Region, compared to the 11% that tourism contributes. Mining jobs also have an estimated pay of $81,500 per year for employees that work in the mining industry. This is in comparison to the $23,000 that is the average yearly pay for tourism based jobs in Northeastern Minnesota.

The map above depicts a comparison of mining jobs and tourism jobs by county in Minnesota. This shows the percent of jobs that mining and tourism comprise in each county. As shown by the map, almost all counties with a heavy reliance on tourism are north of the Twin Cities. In fact, Cook County is one of the highest areas reliant on tourism, with over 21% of all jobs being tourism based. In Northeastern Minnesota, four counties have over 12% of tourism-based jobs. Northeastern Minnesota in general has the highest concentration of tourism-based jobs.

As shown by the map comparison above, mining jobs do not account for a large number of jobs in Minnesota. Some counties have less than 0.25% of mining jobs in the local economy. However, 7% of jobs on the Iron Range are based around mining.

As shown on the map comparison above, areas with a high reliance on tourism jobs are closer to the Canadian border or are in a few select towns. These towns include Duluth, Two Harbors, Chisholm, Hibbing, and Ely where between 15 to 31% of jobs in those areas are based on tourism.

Also shown on the map comparison, mining jobs tend to occur nearest to the Mesabi Iron Range. The dark blue areas show where there are more mining jobs than tourism in those census blocks.

As shown to the left, there is a significant decrease in the annual iron ore tonnages from 1960 to 2019. The orange trendline shows that the annual tonnages shipped out of the Duluth Seaway Port Authority have been on a decreasing trend. In 1965, the tonnages leaving the port were about 36 million tons, while in 2019 they were down to 20 million tons. The lowest amount of tons shipped out was roughly 8 million tons in 2009. That is a decrease of about 28 million tons in 44 years. The trendline forecasts a continuous decrease in iron tonnages in the years to come.

There is a continuous decrease in the average number of mining jobs each year. The trendline is negative, meaning that mining jobs are continuing to decrease in the area. The lowest year was in 2009, with an average of roughly 7,400 jobs in mining. The highest was in 1999, with an average of 11,184 mining jobs. However, since 2013, the region has seen an increase in the average number of mining jobs. The data from 2010 to 2019 suggests there is growth in mining jobs. Though the trend is decreasing, that could change with the current rise in mining based jobs.

The yearly averages of tourism jobs in the counties that make up the Duluth area, have continued to increase since 1990. In 29 years of tourism data, only five records have shown decreases in tourism jobs. Each year since 1990, the tourism industry has been increasing by an average of 140 jobs per year. This growth is projected to continue for this industry.

I conducted a linear regression test to figure out if there is a correlation between the negative growth in mining jobs and the positive growth in tourism jobs. I used the program SPSS to run the linear regression test and analyze the data from the results. I was expecting to find that the average mining jobs and tourism jobs were significantly related, explaining the disparities of the employment of those two industries.

As shown to the left, the regression between the yearly average mining and tourism jobs does return a significant relationship. These results suggest that the loss of mining jobs is likely related to the increase in tourism jobs. Since the ability to predict trends based on this regression test is only a low explanation of 16%, one should exercise caution that this data is related.

The decrease of mining jobs and the increase of tourism based jobs could be due to the aging and small population that occupies Northeastern Minnesota. Many areas of Northeastern Minnesota are below 1 to 10 people per square mile, meaning that the population is smaller and less dense than elsewhere in Minnesota. Due to the lack of population, this would cause a limited amount of jobs in an area, such as the case for Northeastern Minnesota.

The future projection of the population that is 4-17 years old is expected to continue to decline. This would cause less workers in the long term future and even in the short term. Without a young population to replace the older population, population in Northeastern Minnesota will likely continue to decrease, as will the amount of jobs in the area.

The working age population, 18-64, has seen many fluctuations in Northeastern Minnesota. This is due to mining booms and the development of the land. However, by 2030, working age populations are going to hit there lowest that Northeastern Minnesota has seen since before 1950. This will continue to cause less jobs in the area due to a lack of eligible workers.

With a decreasing projected population that is increasing in age, less workers and children will be in the area. This itself could be causing a decrease in mining jobs due to the fact that miners with the qualified skills are retiring or leaving the area. Since there is not an influx in working age workers, this could also mean less qualified people to work on mines. Mining jobs require schooling and training while tourism jobs don't require as many qualifications and are easier to get. This also ties into the fact that mining jobs produce more income while tourism jobs do not. So, while mining continues to decrease, the population in Northeastern Minnesota will continue to be older than the rest of the state.

Mining has had significant impact on the Minnesotan economy and history. Another way it is influencing Minnesota is through tourism. It does appear that mining jobs and iron ore tonnages are decreasing on the Iron Range, and it also appears that tourism is increasing. However, tourism could also be increasing due to the way mining plays into tourism. Recreational trails now run their courses through old mining pits and people are now able to take tours of old mining operations. Through these experiences, people are being attracted to learn about the areas mining history and how mining has changed the landscape. They are now taking the opportunities that mining has provided and are now turning them into attractions that will draw thousands of tourists to them.

Depicted in the graph above are the top tourist destinations along the Iron Range and outside of the Duluth metro area. The Duluth metro area was not included as the economy is not as dependent upon mining and logging and is able to survive by service industries. As shown above, mining has had a significant impact on tourism locations on the Iron Range and many of the current locations have a strong connection to mining. These could be due the influence of mining history, recreational activities that occupy past mining locations, and tourism locations that are directly involved around mining activities. Below is a chart depicting the type of attractions and what they are mostly concerned with.

From the table above, 11 of the tourist attractions on the Iron Range deal with cultural aspects, such as cultural museums, local influential figures, or memorials. However, the second most populous tourist attractions are those revolved around mining. These could be places such as the Soudan Underground Mine State Park, to drill sites, mining museums, and other things that center on the topic of mining.

The Iron Range will continue to see the trend of losing jobs in mining and gaining jobs in tourism. This trend will hurt the local economy as mining jobs pay nearly four times as much as tourism based jobs. Mining jobs also require skilled and trained workers, while tourism jobs do not. This loss of skill will continue to draw jobs away from mining and toward lower skilled tourist jobs. An aging population adds to the economic stress, as retired people do not contribute to local jobs and are more likely to rely on economic assistance than age groups. Since the amount of working aged people is going to continue to decline, there will be a loss of workers for mining corporations.

In a more positive light, mining tourism is picking up on the Iron Range. People who are visiting the Iron Range tend to stop at cultural centers and places that have a direct relationship with mining. In a sense, tourism is being helped by mining while not necessarily helping to increase mining jobs on the Iron Range. In the future, I expect more places to open that are centered around the role mining played on the Iron Range and help educate people about the importance that mining once had on the Iron Range. Mining jobs will likely decrease in the future, as tourism takes a stronger hold on the local economy Again, mining job loss doesn't have a strong link to tourism job gain, but mining is helping to improve the tourism.

For further information regarding Northeastern Minnesota and the Iron Range, please visit any of the following websites;

Watch the videos below for more information about the Iron Range's history and tourism.

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‌Saxhaug, Jan. “Prescription for a Healthy Economy.” Mn.Gov, MN Employment and Economic Development, June 2014, mn.gov/deed/newscenter/publications/trends/june-2014/healthy-economy.jsp. Accessed 18 May 2020.

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‌Minnesota Department of Natural Resources. “Lands and Minerals List of GIS Data, Digital Print Maps, & Web Maps.” Minnesota Department of Natural Resources, www.dnr.state.mn.us/lands_minerals/gis_data_maps/index.html. Accessed 17 Sept. 2020.

‌Huang, Ganlin. “Mining and Tourism: Comparing Spatial Patterns, Socioeconomic Contributions, and Environmental Impacts in China.” University of Vermont, 2008.

‌O’Neill, Kendra. Bridging Mining-Scarred Landscapes and Nature- and Resource-Based Tourism and Recreation in Northern Ontario. 2015.

Iron Range Tourism Bureau. “Family Fun Activities | Northern MN | Iron Range Tourism Bureau.” Ironrange.Org, ironrange.org/. Accessed 21 Oct. 2020.

“Hull-Rust-Mahoning Mine Historical Marker.” Historical Marker, 16 June 2016, www.hmdb.org/m.asp?m=2833. 

Ralph W. Marsden, "Geology of the iron ores of the Lake Superior region in the United States," in, John D. Ridge (ed.), Ore Deposits of the United States, 1933–1967 (New York: American Institute of Mining Engineers, 1970) 493.

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