South Dakota's Quarterly Census of Employment and Wages - 2006

Natural Resources & Mining Industry Group

The natural resources and mining industry group is made up of the agriculture, forestry, fishing and hunting industry and the mining industry. Businesses in this industry group grow crops, raise livestock or extract natural mineral solids at a mine site, to name just a few examples.

Agriculture, Forestry, Fishing and Hunting Industry

The agriculture, forestry, fishing and hunting industry once again experienced gains in worker levels from 2005 to 2006. The average number of workers grew by 133 (4.2 percent) for a new total of 3,314 workers. The average annual pay of workers also increased by $759 to $25,570 (3.1 percent), ranking 14th among the 22 major industries detailed in this annual summary. Note should be made that some subsectors in this industry have seasonal workers, which may cause the ranking to be lower.

Industries in the animal production subsector made up 72 percent of the worker increase in this industry. This subsector increased worker levels by 96 jobs (4.8 percent) over the year. The majority of the growth came from larger operations expanding and the need for additional workers.

The only other subsector to show significant worker gains was support activities, with an increase of 37 jobs (11.5 percent). Industries in this subsector are primarily engaged in providing support services that are an essential part of agricultural and forestry production.

All other subsectors showed very small increases with the exception of crop production, which was the only subsector showing a loss in this industry. Crop production lost 11 workers (1.6 percent) from the previous year. Lingering drought conditions in most parts of western and central South Dakota in 2006 can be attributed to these losses.   

Mining Industry 

After a one-year gain in jobs in the mining industry in 2005 preceded by 11 consecutive years of losses, the mining division industry again experienced a job loss for 2006. With only 66 establishments classified in the mining industry and 785 employees, there is an average of less than 12 employees per establishment. Since industry employment data was first reported in the late 1930s, mining has lost nearly 75 percent of its jobs, which can be directly related to different methods of mining and the closing of several gold mines in the Black Hills.

The mining industry is comprised of establishments engaged in oil and gas extraction, mining (except oil and gas) and support activities for mining. From 2005 to 2006, the average number of workers in this industry decreased by four workers (-0.5 percent) to 785.

Employment in the oil and gas subsector gained 23 workers, for an increase of 328.6 percent. Since the industry worker levels have declined to such a small base level, a loss or a gain of a few workers translates to a large percentage change. Increasing oil prices may be the main reason for the gain in this area.

Industries in the mining (except oil and gas) subsector primarily engage in mining, mine site development and beneficiating (i.e. crushing, screening, washing, sizing, concentrating and floatation of) metallic minerals and nonmetallic minerals, including coal. Mining (except oil and gas) increased by 11 individuals (1.5 percent).

The number of workers employed in the support activities for mining subsector decreased by 38 workers, or 57.6 percent. Establishments in the support activities subsector provide support services, on a fee or contract basis, required for mining and quarrying and for the extraction of oil and gas. Examples include drilling, taking core samples and making geological observations for minerals at prospective sites.

Wages remained high in the mining industry in 2006, with an average annual pay of $44,801; this is an increase of $2,503 (5.9 percent) over the year. The average annual pay would have been even higher if not for the decrease in annual pay of $15,136 in the oil and gas subsector, which was skewed by bonuses paid in 2005. Even with the large decrease in the oil and gas subsector, the industry as a whole still maintained its fourth place ranking in annual pay among the 22 industries featured in this annual summary. For many years high wages paid by gold mines kept mining in the number one position by a substantial margin. As the number of workers in the gold mines declined, so did the average annual pay of workers in the industry.       

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If you have questions or need more information, contact Ron Meier of the Labor Market Information Center at (605) 626-2314 or e-mail him at ron.meier@state.sd.us.