Overview of the Labor Market in May

Labor Supply

Labor Force

South Dakota’s labor force of 444,800 in May was down just slightly from April. There were 12,900 unemployed in May. The May 2008 unemployment rate was 2.9 percent, up from April's rate of 2.6 percent. (Click here for related data.)

Nonfarm wage & salaried workers by industry

This data is not seasonally adjusted.

Over-the-month comparisons

Based on a monthly survey of South Dakota establishments where employment data is collected for the pay periods occurring during the 12^th of the month, preliminary estimates show total nonfarm wage and salaried workers increased by 8,700 workers (or 2.1 percent) from April 2008 to May 2008. (Click here for related data.) The seasonal gain is within historical patterns derived from previous April to May employment level changes, but on the lighter side for growth. (Click here for related historical data.)

Natural resources, mining and construction; professional and business services; leisure and hospitality; and local government produced a majority of the gains.

Natural resources, mining and construction showed an April to May seasonal gain of 2,100 workers (or 9.3 percent). The seasonal change is well within historical patterns derived from previous April to May employment level changes.

Professional and business services grew by 700 workers (or 2.5 percent). The strong seasonal gain appears to be the result of businesses relying more on professional and business services to help meet their operating needs.

Leisure and hospitality grew by 2,900 workers (or 7.0 percent) as those businesses catering to travelers welcomed a new tourist season. The 7 percent increase is just slightly weaker than the historical average March to April employment level changes.

Local government showed a seasonal growth of 1,100 workers (or 2.3 percent).  The strong non-educational growth is the result of summer workers being hired for road crews, ground maintenance, office positions, etc. 

Over-the-year comparisons

Based on a monthly survey of South Dakota establishments, preliminary estimates show total nonfarm wage and salaried workers increased by 4,500 employees (or 1.1 percent) from May 2007 to May 2008. The accumulations of weaker over-the-month seasonal worker growth for March through May 2008 were evident in the May 2007 to May 2008 total nonfarm employment growth.

Natural resources, mining and construction showed a gain of 900 workers (or 3.8 percent). The national economic slowdown did have an effect on the industry’s growth in 2007, as it caused caution in South Dakota consumers. It is likely continued growth of higher paying jobs in South Dakota and continued low mortgage rates (which allows people to build or remodel homes/businesses they would not be able to with higher rates) has revived over-the-year growth in the natural resources, mining and construction industry.

Worker levels in the financial activities industry grew by 700 workers (or 2.3 percent) over the year. South Dakota’s financial activities growth trend seems to have stabilized around the low- to mid- 2 percent range at this time.

Professional and business services added 900 workers (or 3.2 percent), which is good news, as it indicates other industries are still expanding to the point they need additional help from professional and business services.

The healthcare and social services industry produced an increase of 1,400 workers (or 2.6 percent) over the year. South Dakota healthcare worker numbers have increased every year since the specific data was first recorded in 1972. The Federal Reserve Bank of Minneapolis has written several articles on our regional healthcare which help explain some of the recent increases in medical workers. (Click here for regional health care articles).

Government employment increased by 700 workers (or 0.9 percent), with local governments producing most of the growth. As communities continue to grow, so will local government agencies to meet the communities’ needs.

Nonfarm Wage and Salaried Workers in the Metropolitan Statistical Areas

Rapid City MSA

Based on preliminary estimates from the monthly survey of Rapid City MSA establishments, the total nonfarm wage and salaried worker count from April 2008 to May 2008 grew by 1,700 workers (or 2.8 percent). The seasonal gain is within historical patterns derived from previous April to May employment level changes. The gain was made up mainly by natural resources, mining and construction’s 300 worker (or 6.0 percent) increase, and leisure and hospitality’s 700 worker (or 9.1 percent) worker gain. There were no industries which produced over-the-month worker losses in the Rapid City MSA. (Click here for related data.).

From May 2007 to May 2008, the Rapid City MSA nonfarm wage and salaried worker levels increased by 400 employees (or 0.6 percent). (Click here for related historical data.)

Sioux Falls MSA

Based on preliminary estimates from the monthly survey of Sioux Falls MSA establishments, the total nonfarm wage and salaried worker count from April 2008 to May 2008 increased by 1,900 workers (or 1.4 percent). The seasonal gain is within percentage changes that have occurred during past April to May time frames. (Click here for related data.)

From May 2007 to May 2008, the Sioux Falls MSA had a 1,800 (or 1.3 percent) nonfarm wage and salaried worker increase. (Click here for related historical data.)

Click here for more information on the Current Employment Statistics (CES) Program, including definitions.