That's the normal behavior. When you create your sketch dimensions, they remember their original locations even if the sketch geometry moves or gets very small, the dimensions will still think they're located where they were originally. You'll have to move them manually.
John R. Baker, P.E.
Product 'Evangelist'
Product Engineering Software
Siemens PLM Software Inc.
Digital Factory
Cypress, CA Siemens PLM: UG/NX Museum:
To an Engineer, the glass is twice as big as it needs to be.