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South Dakota nonfarm industry trends in 2011

From the February 2012 South Dakota e-Labor Bulletin

Please note: Unless otherwise noted, the following highlights are based on a comparison of annual average data for 2010 and 2011.

Statewide Trends

South Dakota total nonfarm employment increased by 3,000 workers (0.7 percent) from 2010 to 2011. Our state fared relatively well during the recession and into the recovery stage, which was reflected by our unemployment rate being consistently much lower than the national rate.

Goods producing industries (which include mining, logging and construction plus manufacturing) in South Dakota had a gain of 1,900 workers (3.3 percent) during 2011. Service providing industries (which includes all other sectors except government) had a gain of 1,100 workers (0.3 percent).

South Dakota Statewide Nonfarm Wage & Salaried Workers by Industry
Industry	2010 Annual Average	2011 Annual Average	Net Change	Percent Change
Total Nonfarm	403,200	406,200	3,000	0.7%
Total Private	324,500	328,200	3,700	1.1%
Goods Producing	57,900	59,800	1,900	3.3%
Service Providing	345,300	346,400	1,100	0.3%
Natural Resources, Mining and Construction	21,000	20,900	-100	-0.5%
Manufacturing	36,900	38,900	2,000	5.4%
Wholesale Trade	18,600	19,100	500	2.7%
Retail Trade	49,500	50,500	1,000	2.0%
Transportation, Warehousing & Utilities	12,500	12,600	100	0.8%
Information	6,500	6,400	-100	-1.5%
Financial Activities	28,900	28,000	-900	-3.1%
Professional & Business Services	27,500	28,500	1,000	3.6%
Educational & Health Services	64,500	65,400	900	1.4%
Leisure & Hospitality	43,000	42,400	-600	-1.4%
Other Services (except Public Administration)	15,600	15,500	-100	-0.6%
Government	78,700	78,000	-700	-0.9%
Note: Numbers may not add due to rounding. Source: Labor Market Information Center, South Dakota Department of Labor, March 2012.

The natural resources, mining and construction sector remained relatively stable over the year, with a 100 worker (0.5 percent) loss. The construction industry accounts for most of the workers within this sector. Data published by the U.S. Census Bureau shows new privately owned housing permits in South Dakota did increase this past year, from 2,193 permits in 2010 to 2,939 in 2011. This compares to an overall decline of 1,204 (29.2 percent) permits for the 2008-2010 period, which corresponded with the loss of 2,300 workers (9.9 percent) in this industry for the same time period.

Manufacturing gained 2,000 workers (5.4 percent) from 2010 to 2011. This gain reflects a comeback from the recessionary losses that occurred during the years 2008 and 2009, with a total combined loss of 5,800 workers by the end of 2009. The manufacturing sector has experienced over-the-year employment gains since July 2010.

The wholesale trade sector increased by 500 workers (2.7 percent) during the year. The strong agriculture economy in South Dakota served as a solid source of support to the wholesale trade industry.

The retail trade sector gained 1,000 workers (2.0 percent) from 2010 to 2011.

Transportation, warehousing and utilities remained relatively stable over the year, increasing by 100 workers (0.8 percent). The information sector also remained relatively stable, with a loss of 100 workers (1.5 percent).

Worker levels in the financial activities industry dropped by 900 workers (3.1 percent). This continues the slightly downward trend of national and local credit card operations affected by legislated restrictive credit card laws. Banks not deeply involved with credit card operations remained relatively stable.

Professional and business services added 1,000 workers (3.6 percent). 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.

The education and health services sector increased by 900 workers (1.4 percent). Approximately 200 workers were added within the private education sector, as educational institutions continue to expand their educational curriculum to meet expected workforce needs. (Note: public education is classified within government.)

An additional 700 workers were added within the healthcare and social assistance sector, continuing a lengthy growth trend. State healthcare worker numbers have increased every year since the data was first recorded in 1972. The continued worker demand in this industry is related to several factors, including continued population growth, an aging population and specialized procedures which require additional staff. As life expectancy increases related to medical advancements, people are living longer, with the older population typically using health care services more often.

Leisure and hospitality services decreased by 600 workers (1.4 percent). Other services remained relatively stable with a loss of 100 workers (0.6 percent) from 2010 to 2011.

Total government reflected a loss of 700 workers (0.9 percent). This loss was shared by the federal government (400 workers or 3.4 percent) and local government (300 workers or 0.6 percent). The state government worker level was unchanged.

Rapid City Metropolitan Statistical Area (MSA) Trends

The Rapid City MSA's total nonfarm worker level increased by 900 (1.5 percent) from 2010 to 2011. Most industry sectors showed growth over the year or remained stable, with the exception of the information sector (loss of 100 workers or 10.0 percent) and leisure and hospitality (loss of 100 workers or 1.2 percent).

Rapid City MSA Nonfarm Wage & Salaried Workers by Industry (Meade & Pennington Counties)
Industry	2010 Annual Average	2011 Annual Average	Net Change	Percent Change
Total Nonfarm	60,500	61,400	900	1.5%
Total Private	49,700	50,500	800	1.6%
Goods Producing	6,800	6,900	100	1.5%
Service Providing	53,700	54,400	700	1.3%
Natural Resources, Mining and Construction	4,300	4,400	100	2.3%
Manufacturing	2,500	2,500	0	0.0%
Wholesale Trade	2,000	2,000	0	0.0%
Retail Trade	8,700	9,000	300	3.4%
Transportation, Warehousing & Utilities	1,700	1,700	0	0.0%
Information	1,000	900	-100	-10.0%
Financial Activities	3,700	3,700	0	0.0%
Professional & Business Services	4,700	4,900	200	4.3%
Educational & Health Services	9,700	10,100	400	4.1%
Leisure & Hospitality	8,600	8,500	-100	-1.2%
Other Services (except Public Administration)	2,700	2,800	100	3.7%
Government	10,800	10,900	100	0.9%
Note: Numbers may not add due to rounding. Source: Labor Market Information Center, South Dakota Department of Labor, March 2012

Sioux Falls Metropolitan Statistical Area (MSA) Trends

The Sioux Falls MSA total nonfarm worker level increased by 2,500 workers (1.9 percent) from 2010 to 2011. Most industry sectors added workers or remained stable, with the exception of the financial activities, which showed a drop of 500 workers (3.2 percent).

Sioux Falls MSA Nonfarm Wage & Salaried Workers by Industry (Lincoln, Minnehaha, McCook & Turner Counties)
Industry	2010 Annual Average	2011 Annual Average	Net Change	Percent Change
Total Nonfarm	133,400	135,900	2,500	1.9%
Total Private	120,400	122,900	2,500	2.1%
Goods Producing	18,600	18,900	300	1.6%
Service Providing	114,800	117,000	2,200	1.9%
Natural Resources, Mining and Construction	6,600	6,600	0	0.0%
Manufacturing	11,900	12,300	400	3.4%
Wholesale Trade	6,700	7,000	300	4.5%
Retail Trade	16,500	17,300	800	4.8%
Transportation, Warehousing & Utilities	4,900	4,900	0	0.0%
Information	2,900	2,900	0	0.0%
Financial Activities	15,500	15,000	-500	-3.2%
Professional & Business Services	11,300	11,900	600	5.3%
Educational & Health Services	26,500	27,300	800	3.0%
Leisure & Hospitality	12,700	12,900	200	1.6%
Other Services (except Public Administration)	4,800	4,800	0	0.0%
Government	13,000	13,000	0	0.0%
Note: Numbers may not add due to rounding. Source: Labor Market Information Center, South Dakota Department of Labor, March 2012

Balance of State 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 suffered a minimal decline of 400 workers (0.2 percent). Private industries losing the most workers include leisure and hospitality (700 or 3.2 percent) and financial activities (400 or 4.1 percent). Manufacturing added the most workers (1,600 or 7.1 percent).

Balance of State* Nonfarm Wage & Salaried Workers by Industry
Industry	2010 Annual Average	2011 Annual Average	Net Change	Percent Change
Total Nonfarm	209,300	208,900	-400	-0.2%
Total Private	154,400	154,800	400	0.3%
Goods Producing	32,500	34,000	1,500	4.6%
Service Providing	176,800	175,000	-1,800	-1.0%
Natural Resources, Mining and Construction	10,100	9,900	-200	-2.0%
Manufacturing	22,500	24,100	1,600	7.1%
Wholesale Trade	9,900	10,100	200	2.0%
Retail Trade	24,300	24,200	-100	-0.4%
Transportation, Warehousing & Utilities	5,900	6,000	100	1.7%
Information	2,600	2,600	0	0.0%
Financial Activities	9,700	9,300	-400	-4.1%
Professional & Business Services	11,500	11,700	200	1.7%
Educational & Health Services	28,300	28,000	-300	-1.1%
Leisure & Hospitality	21,700	21,000	-700	-3.2%
Other Services (except Public Administration)	8,100	7,900	-200	-2.5%
Government	54,900	54,100	-800	-1.5%
*Balance of State includes all counties of South Dakota except those included in the Metropolitan Statistical Areas (Meade, Pennington, Lincoln, Minnehaha, McCook and Turner counties). Note: Numbers may not add due to rounding. Source: Labor Market Information Center, South Dakota Department of Labor, March 2012

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