Department of Labor and Regulation

Title - Labor Market Information Center

South Dakota Nonfarm Worker Trends in 2010

From the February 2011 South Dakota e-Labor Bulletin

Please note: Unless otherwise noted, the following highlights are based on a comparison of annual average data for 2009 and 2010.

South Dakota total nonfarm employment declined by 900 workers (or 0.2 percent) from 2009 to 2010. The loss would have been 1,100 workers (or 0.3 percent) if temporary U.S. census workers and the temporary summer youth program (which was funded by stimulus money) were factored out.

It is quite evident South Dakota hit a turning point in the recession during 2010, as 2010 losses were minimal compared to the 2009 loss of 7,700 workers (or 1.9 percent). Other data supporting the notion of a South Dakota recovery was gross state sales (based on data from the South Dakota Department of Revenue) hitting new record highs in November and December 2010. An additional promising sign was new hire counts which started to recover in August 2010. Another indicator of strong economic growth is employment numbers for temporary help agencies, which have been growing since February 2010.

South Dakota fared relatively well during the recession, as our state unemployment rate was consistently well below the national rate. South Dakota's recessionary period was also much shorter and is currently recovering faster than the nation as a whole.

Good producing industries (which includes mining, logging and construction plus manufacturing) in South Dakota had a loss of 1,700 workers (or 2.9 percent) during 2010. This loss comprised the majority of the total private worker loss of 1,800 (or 0.6 percent).

South Dakota Statewide
Nonfarm Wage & Salaried Workers by Industry
Industry 2009 Annual Average 2010 Annual Average Absolute
Change
Percent Change
Total nonfarm 403,700 402,800 -900 -0.2%
  Total private 325,900 324,100 -1,800 -0.6%
  Goods producing 59,500 57,800 -1,700 -2.9%
  Service providing 344,200 345,000 800 0.2%
Mining, logging and construction 21,800 20,900 -900 -4.1%
Manufacturing 37,700 36,900 -800 -2.1%
Wholesale Trade 18,300 18,500 200 1.1%
Retail Trade 49,600 49,600 0 0.0%
Transportation, Warehousing & Utilities 12,800 12,500 -300 -2.3%
Information 6,700 6,600 -100 -1.5%
Financial Activities 30,400 28,700 -1,700 -5.6%
Professional & Business Services 26,900 27,300 400 1.5%
Educational & Health Services 63,200 64,400 1,200 1.9%
Leisure & Hospitality 42,900 43,100 200 0.5%
Other Services (except Public Administration) 15,700 15,700 0 0.0%
Government 77,800 78,700 900 1.2%
Note: Numbers may not add due to rounding.
Source: Labor Market Information Center, South Dakota Department of Labor, February 2011.

Natural resources, mining and construction showed a 900 worker (4.1 percent) loss. The end of the federal first-time homebuyer tax credit in 2010 plus the reduction in new housing construction reduced the demand for construction workers. (Data published by the U.S. Census Bureau shows new privately owned housing permits in South Dakota dropped from 3,529 in 2009 to only 2,913 in 2010.)

Manufacturing lost 800 workers (2.1 percent) from 2009 to 2010. The good news is manufacturing started to turn losses around in January 2010, and then started showing over-the-year gains by July 2010.

Wholesale trade worker levels increased by 200 workers (1.1 percent). The strong agriculture economy in South Dakota served as solid source of support to the wholesale trade industry.

Retail trade remained unchanged with zero worker growth (0.0 percent) from 2009 to 2010.

Transportation, warehousing and utilities decreased by 300 workers (or 2.3 percent), with 200 of the worker loss due to an administrative adjustment from a non-economic code change.

The information super sector decreased by 100 workers (1.5 percent) as the industry streamlined from reduced consumer demand.

Worker levels in the financial activities industry dropped by 1,700 workers (5.6 percent). Most of the losses came from national and local credit card operations which were affected by consumer financial woes and legislated restrictive credit card laws. Banks not deeply involved with credit card operations remained stable.

Professional and business services grew by 400 workers (1.5 percent) on an annualized basis. The professional and business service industry increase was the result of other industry businesses increasing output and therefore needing a higher level of services being provided by professional and business services.

Education and health services increased by 1,200 workers (1.9 percent). Some of this gain (200 workers) came from private education, as educational institutions expand their educational curriculum to incorporate new or expanding technologies (such as newly developed medical procedures and equipment, the coming of nano-manufacturing, genetic engineering, etc.). (Note: public education is classified within government.)

The health care and social services industry increased by 1,000 workers and is continuing a lengthy growth trend. South Dakota healthcare worker numbers have increased every year since the data was first recorded in 1972 and at comparable percentages. The demand for more workers in this industry is related to several factors, including continued population growth in South Dakota and new medical discoveries and specialized procedures which require additional staff. As many of these new discoveries increase life expectancy, people are living longer; the older population typically uses health care services more often.

Leisure and hospitality increased by 200 workers (0.5 percent), faring better than the nation, which lost 0.4 percent of workers in this sector. South Dakota's gain is likely related to our state providing a good value for money spent on vacations or shorter get-aways, especially popular during the recession among visitors watching their spending. It may be interesting to note leisure and hospitality did not lose employment during the 2001 recession either, but remained relatively stable with a 100 worker gain.

Other services remained unchanged with a loss of zero workers (0.0 percent) from 2009 to 2010.
Total government produced a growth of 900 workers (or 1.2 percent). Temporary census workers and the temporary summer youth program workers (funded by stimulus dollars) contributed 200 of the growth. Most of government's growth was related to educational services.

Rapid City Metropolitan Statistical Area (RCMSA) Nonfarm Worker Trends

The Rapid City MSA's total nonfarm worker level dropped by 400 (0.7 percent) from 2009 to 2010. The Rapid City MSA was hit particularly hard in mining, logging and construction, and manufacturing. However, the MSA's leisure and hospitality industry had the strongest growth in the state.

Rapid City MSA Nonfarm Wage & Salaried Workers by Industry
(Meade & Pennington Counties)
Industry 2009 Annual Average 2010 Annual Average Absolute
Change
Percent Change
Total nonfarm 60,800 60,400 -400 -0.7%
  Total private 50,300 49,600 -700 -1.4%
  Goods producing 7,400 6,800 -600 -8.1%
  Service providing 53,500 53,600 100 0.2%
Mining, logging and construction 4,700 4,300 -400 -8.5%
Manufacturing 2,700 2,500 -200 -7.4%
Wholesale Trade 2,100 2,000 -100 -4.8%
Retail Trade 8,900 8,700 -200 -2.2%
Transportation, Warehousing & Utilities 1,800 1,700 -100 -5.6%
Information 1,000 1,000 0 0.0%
Financial Activities 3,800 3,800 0 0.0%
Professional & Business Services 4,800 4,700 -100 -2.1%
Educational & Health Services 9,500 9,600 100 1.1%
Leisure & Hospitality 8,400 8,600 200 2.4%
Other Services (except Public Administration) 2,700 2,700 0 0.0%
Government 10,600 10,800 200 1.9%
Note: Numbers may not add due to rounding.
Source: Labor Market Information Center, South Dakota Department of Labor, February 2011.

Sioux Falls Metropolitan Statistical Area (SFMSA) Nonfarm Worker Trends

The Sioux Falls MSA total nonfarm worker level decreased by 600 (0.4 percent) from 2009 to 2010. The Sioux Falls MSA was also hit hard in mining, logging and construction, as well as in manufacturing. However, the MSA's financial industry felt most of the pain with a loss of 1,000 workers (or 6.1 percent). The educational and healthcare industry had the highest growth with a 1,000 worker (3.9 percent) increase.

Sioux Falls MSA Nonfarm Wage & Salaried Workers by Industry
(Lincoln, Minnehaha, McCook & Turner Counties)
Industry 2009 Annual Average 2010 Annual Average Absolute
Change
Percent Change
Total nonfarm 133,600 133,000 -600 -0.4%
  Total private 120,800 120,000 -800 -0.7%
  Goods producing 19,400 18,500 -900 -4.6%
  Service providing 114,200 114,400 200 0.2%
Mining, logging and construction 7,100 6,600 -500 -7.0%
Manufacturing 12,300 12,000 -300 -2.4%
Wholesale Trade 6,700 6,700 0 0.0%
Retail Trade 16,400 16,600 200 1.2%
Transportation, Warehousing & Utilities 5,000 4,900 -100 -2.0%
Information 3,000 2,900 -100 -3.3%
Financial Activities 16,300 15,300 -1,000 -6.1%
Professional & Business Services 10,900 11,200 300 2.8%
Educational & Health Services 25,500 26,500 1,000 3.9%
Leisure & Hospitality 12,900 12,700 -200 -1.6%
Other Services (except Public Administration) 4,700 4,800 100 2.1%
Government 12,800 13,000 200 1.6%
Note: Numbers may not add due to rounding.
Source: Labor Market Information Center, South Dakota Department of Labor, February 2011.

Balance of State Nonfarm Worker Trends

The balance of state is comprised of all counties not defined as part of an MSA. Therefore, balance of state includes all counties except Pennington, Meade, Lincoln, Minnehaha, McCook and Turner. The remainder of state data allows one to see how industries are doing in the more rural areas of South Dakota.

Total nonfarm employment in this area grew by 100 workers (0.0 percent). If government growth is not factored, the balance of state showed over-the-year losses. It is noteworthy that balance of state's mining, logging and construction industry showed no loss. Evidently construction demand in the rural areas remained stable.

Balance of State* Nonfarm Wage & Salaried Workers by Industry
Industry 2009 Annual Average 2010 Annual Average Absolute
Change
Percent Change
Total nonfarm 209,300 209,400 100 0.0%
  Total private 154,800 154,500 -300 -0.2%
  Goods producing 32,700 32,500 -200 -0.6%
  Service providing 176,500 177,000 500 0.3%
Mining, logging and construction 10,000 10,000 0 0.0%
Manufacturing 22,700 22,400 -300 -1.3%
Wholesale Trade 9,500 9,800 300 3.2%
Retail Trade 24,300 24,300 0 0.0%
Transportation, Warehousing & Utilities 6,000 5,900 -100 -1.7%
Information 2,700 2,700 0 0.0%
Financial Activities 10,300 9,600 -700 -6.8%
Professional & Business Services 11,200 11,400 200 1.8%
Educational & Health Services 28,200 28,300 100 0.4%
Leisure & Hospitality 21,600 21,800 200 0.9%
Other Services (except Public Administration) 8,300 8,200 -100 -1.2%
Government 54,400 54,900 500 0.9%
*Balance of State includes all counties of South Dakota except those included in theMetropolitan Statistical Areas (Pennington, Meade, Lincoln, Minnehaha, McCook & Turner counties).
Note: Numbers may not add due to rounding.
Source: Labor Market Information Center, South Dakota Department of Labor, February 2011.

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Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184