South Dakota Statewide Nonfarm Worker Trends

All data is given in annual averages of non-seasonally adjusted data.

South Dakota statewide total nonfarm employment grew by 9,000 workers (or 2.3 percent) from 2005 to 2006 and continues on an accelerating growth trend. South Dakota has been doing quite well compared to the United States, as the national benchmarked estimates show a 1.8 percent annualized growth rate in 2006.

South Dakota Nonfarm Wage & Salaried Workers by Industry
Industry	2005 Annual Average	2006 Annual Average	Absolute Change	Percent Change
Total Nonfarm	389,800	398,800	9,000	2.3%
Natural Resources & Mining	900	900	0	0.0%
Construction	21,000	22,000	1,000	4.8%
Manufacturing	39,800	41,500	1,700	4.3%
Wholesale Trade	17,600	18,300	700	4.0%
Retail Trade	49,300	49,300	0	0.0%
Transportation, Warehousing & Utilities	12,100	12,700	600	5.0%
Information	6,800	7,000	200	2.9%
Financial Activities	28,500	29,600	1,100	3.9%
Professional & Business Services	24,500	25,500	1,000	4.1%
Educational & Health Services	57,400	58,600	1,200	2.1%
Leisure & Hospitality	41,700	42,500	800	1.9%
Other Services (except Public Administration)	15,500	15,600	100	0.6%
Government	75,000	75,100	100	0.1%
Note: Numbers may not add due to rounding. Source: Labor Market Information Center, South Dakota Department of Labor, February 2007

Worker growth in South Dakota was disbursed among several industries. Construction grew by 1,000 workers (or 4.8 percent) from 2005 to 2006; this growth has definitely been affected by population shifts within the state. These shifts have had an impact on sustained construction activity, with the movement in population affecting the demand for new housing and businesses.

Manufacturing grew by 1,700 workers (or 4.3 percent) and produced a 2006 average level of 41,500 workers.  Although some of the growth was centered in the metropolitan areas, the majority of the growth (1,400 workers) was dispersed throughout the rest of the state.  South Dakota’s statewide manufacturing recovery started in January 2004 and still continues, but the worker level has not reached the previous high of 44,200 in 1999. In comparison, the national estimates have not shown annualized growth since 1998.

Transportation, warehousing and utilities added 600 workers (or 5.0 percent).  Railroads, warehousing and storage, and truck transportation added a majority of the worker gains. Record high fuel prices in 2006 did not seem to curtail the need to transport goods for the goods producing industries and for the retail and wholesale trade industries that sold those goods. 

Worker levels in the financial activities industry grew by 1,100 workers (or 3.9 percent).  In the 1990s, financial activities was one of South Dakota’s fastest growing industries. The growth was a result of banking reform laws that eased competition restrictions while allowing institutions to expand their financial services. During the 1990s and into 2001, the industry enjoyed over a 60 percent increase in workers. As with most rapidly expanding industries, major mergers and reorganizations started taking place, which basically stagnated worker growth from 2002 to 2004.  Worker numbers started climbing once again in 2005 and 2006.

Professional and business services added 1,000 workers (or 4.1 percent) and produced its second consecutive annualized gain since 2000. The recession that took place in 2001 lowered the demand for many of the services this industry provides to other businesses. The increase in worker levels for this industry indicate South Dakota’s economy is doing well. Some services in this industry include legal, accounting, architectural, engineering, management, scientific and technical consulting services.

Education and health services increased by 1,200 workers (or 2.1 percent). About 500 of the worker gain came from private education, as educational institutions continued to evolve programs to provide skilled workers demanded by the labor market. (Note: public education is coded under government.) The health care and social services industry increased by 700 workers and is continuing a lengthy growth trend. South Dakota health care has been a growth industry since data was first recorded in 1972. This growth trend has continued for several reasons, including continued population growth, the advance of technology and new medical discoveries that enhance or extend human life. Another reason for continued worker growth is people are living longer, which corresponds to the need for increased health care services.

Leisure and hospitality grew by 800 workers (or 1.9 percent), continuing a growth trend now five years long. Even during the 2001 recession, leisure and hospitality employment remained stable. The continued growth of the leisure and hospitality industry correlates to spending related to tourism, as well the popularity of dining out or ‘driving thru” for a take home dinner.

South Dakota wholesale trade worker levels increased by 700 workers (or 4.0 percent). Employment increased primarily from employment gains in agents and brokers who sell wholesale goods. Employment in the information super sector increased by 200 workers (or 2.9 percent), with the worker increase focused in the telecommunications industry. Other services and government each showed a modest 100 worker increase from 2005 to 2006.

The number of workers in natural resources and mining and retail trade remained stable during this time period. Retail trade had a turbulent year in 2006, with this sector showing over-the-year losses from February through August, but strong employment gains from October through December. National retail employment showed a small annualized gain in 2006, but monthly estimates show over-the-year employment losses started occurring in July 2006 and still continue in 2007.

Rapid City MSA Nonfarm Wage & Salaried Workers by Industry (Meade and Pennington Counties)
Industry	2005 Annual Average	2006 Annual Average	Absolute Change	Percent Change
Total Nonfarm	59,500	60,300	800	1.3%
Natural Resources and Construction	4,900	4,900	0	0.0%
Manufacturing	3,800	3,700	-100	-2.6%
Wholesale Trade	2,200	2,100	-100	-4.5%
Retail Trade	8,700	8,700	0	0.0%
Transportation, Warehousing & Utilities	1,900	2,000	100	5.3%
Information	1,100	1,100	0	0.0%
Financial Activities	3,400	3,600	200	5.9%
Professional & Business Services	4,100	4,400	300	7.3%
Educational & Health Services	8,900	8,900	0	0.0%
Leisure & Hospitality	8,200	8,400	200	2.4%
Other Services (except Public Administration)	2,600	2,600	0	0.0%
Government	9,800	9,900	100	1.0%
Note: Numbers may not add due to rounding. Source: Labor Market Information Center, South Dakota Department of Labor, February 2007

Sioux Falls MSA Nonfarm Wage & Salaried Workers by Industry (Lincoln, Minnehaha, McCook & Turner Counties)
Industry	2005 Annual Average	2006 Annual Average	Absolute Change	Percent Change
Total Nonfarm	125,800	129,400	3,600	2.9%
Natural Resources and Construction	7,400	7,800	400	5.4%
Manufacturing	12,700	13,100	400	3.1%
Wholesale Trade	6,400	6,700	300	4.7%
Retail Trade	16,200	16,200	0	0.0%
Transportation, Warehousing & Utilities	4,700	5,000	300	6.5%
Information	2,900	3,000	100	3.4%
Financial Activities	15,400	15,800	400	2.6%
Professional & Business Services	9,400	10,000	600	6.4%
Educational & Health Services	22,500	22,900	400	1.8%
Leisure & Hospitality	12,100	12,600	500	4.1%
Other Services (except Public Administration)	4,500	4,600	100	2.2%
Government	11,600	11,700	100	0.9%
Note: Numbers may not add due to rounding. Source: Labor Market Information Center, South Dakota Department of Labor, February 2007

Balance of State* Nonfarm Wage & Salaried Workers by Industry
Industry	2005 Annual Average	2006 Annual Average	Absolute Change	Percent Change
Total Nonfarm	204,500	209,100	4,600	2.2%
Natural Resources and Construction	9,600	10,200	600	6.3%
Manufacturing	23,300	24,700	1,400	6.0%
Wholesale Trade	9,000	9,500	500	5.6%
Retail Trade	24,400	24,400	0	0.0%
Transportation, Warehousing & Utilities	5,500	5,700	200	3.6%
Information	2,800	2,900	100	3.6%
Financial Activities	9,700	10,200	500	5.2%
Professional & Business Services	11,000	11,100	100	0.9%
Educational & Health Services	26,000	26,800	800	3.1%
Leisure & Hospitality	21,400	21,500	100	0.5%
Other Services (except Public Administration)	8,400	8,400	0	0.0%
Government	53,600	53,500	-100	-0.2%
*Balance of State includes all counties of South Dakota except those included in the Metropolitan 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 2007