Is unemployment rising or falling in South Dakota?
RAPID CITY, S.D – The number of unemployment claims filed fell across the nation last week, according to data from the Department of Labor. This suggests that the labor market has remained relatively unaffected by a series of Federal Reserve interest rate hikes.
According to data from WalletHub, there was nowhere that the number of claims fell more sharply than in South Dakota, which saw a decrease of nearly 64%.
This puts South Dakota’s unemployment claim rate at 39 per 100,000 workers, the 5th lowest in the nation.
This is not merely a one-off drop, either. Unemployment claims in South Dakota were 47.63% lower than in the same week pre-pandemic (2019). This was the 9th biggest decrease in the U.S.
This continues a long-running trend of South Dakota having one of the lowest unemployment rates in the nation. But it’s not all good news; low unemployment can be a sign that employers can’t find enough workers.
According to the The Creighton University Mid-America Business Conditions Index for November 2022, 65% of firms in the Mid-America region reported shortages of job applicants.
In addition to a shortage of workers, businesses are facing higher input costs, shortages on supplies, and low market confidence.
“Confidence indices for each month in 2022, all below growth neutral, are the worst string of readings since the 2008-09 recession,” said Ernie Goss, director of Creighton University’s Economic Forecasting Group.
But in South Dakota at least, none of these factors are stopping continuous growth in both the number of jobs and the wages that they pay.
The Business Conditions Index said that over the past 12 months, private wages of all workers in South Dakota increased by 5.6%, and manufacturing wages climbed by 8.8%.
At the same time, South Dakota was only one of four states in the region that saw an increase in the total of number of jobs in the state. The other states included Nebraska, Arkansas, and Missouri.