ECONOMY IN SOUTH DAKOTA

  • In 2016, South Dakota ranked 23rd among the 50 states for economic output per working age adult, at $77,644. This compared to No. 1 Delaware, at $100,269, No. 50 Mississippi, at $50,138, and the national average, at $78,304.

  • South Dakota's tourism tax is on the upswing, going from $745 million in 2015 to $831 million in 2016. (Inflation adjusted figures are used based on 2016 dollars.) South Dakota's tourism tax revenue has continued to increase year over year since 2011. 

  • South Dakota's gross sales decreased slightly in 2016 to $67.5 billion, down from $69.1 billion, (inflation adjusted dollars) in 2015. 

  • Jobs in South Dakota resumed modest annual growth in 2011 after the state shed jobs in 2009 and 2010. Jobs in the Rushmore State hit an all-time high in 2016 at 432,700. The figures exclude the self-employed as well as agriculture, domestic and military workers.

Monday, 12 January 2015 17:00

Deuel County No. 1 for Homeownership in SD

Deuel County ranks No. 1 statewide for homeownership with a rate of 85 percent, according to recently updated data from the U.S. Census

Statewide, the homeownership rate was 67.2 percent in 2013 compared to 63.5 percent nationally, both below prerecession rates of 69.2% and 66.6% respectively in 2008. Over the five-year period (2009-2013), the statewide homeownership rate was 68 percent.

Here's a look at the top 5 counties for homeownership: 

 County  Rank  Rate
 Deuel   1st  85%
 Hanson   2nd  83.5%
 Potter   3rd  81.4%
 Aurora   4th  80.6%
 McCook   5th  80.1%

Each of South Dakota's five counties with the lowest rates of homeownership are on an American Indian reservation. 

 County  Rank  Rate
 Buffalo   66th  37.3%
 Todd   65th  46.5%
 Ziebach   64th  51.7%
 Bennett   63rd  52.4%
 Shannon   62nd  52.5%

Statewide, the homeownership rate was 67.2 percent in 2013 compared to 63.5 percent nationally, both below prerecession rates of 69.2% and 66.6% respectively in 2008. Over the five-year period (2009-2013), the statewide homeownership rate was 68 percent.

At the same time, South Dakotans living in non-metro areas were more likely than those in metropolitan and micropolitan areas. 

 Status  Rate (2009-13)
 Non-metropolitan      70.2%
 Metropolitan      68%
 Micropolitan      66.3%

Here's a look at the highest and lowest rates among South Dakota cities from a list of the state's 27 most populous municipalities. 

 City    Rank    Rate
 Harrisburg    1st    83.9%
 Tea    2nd    76.7%
 Dell Rapids   3rd    74.8%
 Hartford   4th    71.8%
 Brandon   5th    71.5%
 Mobridge   23rd    53.6%
 Spearfish   24th    49.4%
 Brookings   25th    47.3%
 Box Elder   26th    46.7%
 Vermillion   27th    43.3%

Homeowners in South Dakota are more likely to be white than of color. The homeownership rate for whites was 71.6 percent (2009-2013), compared to a rate of 36.9 percent for American Indians and 38.2 percent for others of color. Homeownership ranges widely on South Dakota's American Indian reservations, from 68 percent on the Lake Traverse reservation to 30.8 percent on the Crow Creek reservation. 

Find much more data on interactive charts, plus downloadable files and images on the Homeownership page on the South Dakota Dashboard

 

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By Northern Plains News
 
The U.S. Geological Survey has released a new report detailing changes of groundwater levels in the High Plains Aquifer.
 
The report presents water-level change data in the aquifer for two separate periods: from 1950 — the time before significant groundwater irrigation development — to 2013, and 2011 to 2013. Find state-by-state information for each year back to 1980 online through the USGS.
 
“The measurements made from 2011 to 2013 represent a large decline,” said Virginia McGuire, USGS scientist and lead author of the study. “This amount of aquifer depletion over a 2-year period is substantial and likely related to increased groundwater pumping.”
 
In 2011, the total water stored in the aquifer was about 2.92 billion acre-feet, an overall decline of about 267 million acre-feet — or 8 percent — since predevelopment. Change in water stored from 2011 to 2013 was an overall decline of 36.0 million acre-feet. The overall average water-level decline in the aquifer was 15.4 feet from predevelopment to 2013, and 2.1 feet from 2011 to 2013.
 
The USGS study used water-level measurements from 3,349 wells for predevelopment to 2013 and 7,460 wells for the 2011 to 2013 study period.
 
The High Plains Aquifer, also known as the Ogallala Aquifer, underlies about 112 million acres (175,000 square miles) in parts of eight states, including: Colorado, Kansas, Nebraska, New Mexico, Oklahoma, South Dakota, Texas, and Wyoming. In South Dakota, it underlies all of Bennett County, most of Todd County, part of Shannon, Mellette, Gregory and Tripp counties.
 

The USGS, at the request of the U.S. Congress, has published reports on water-level changes in the High Plains Aquifer since 1988. Congress requested these reports in response to substantial water-level declines in large areas of the aquifer.

Read more about water on the Black Hills Knowledge Network.

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South Dakota is the most entrepreneur friendly state in the nation, reports Northern Plains News.

This month, the Small Business & Entrepreneurship Council released its 19th annual "Small Business Policy Index 2014: Ranking the States on Policy Measures and Costs Impacting Small Business and Entrepreneurship." Find the full report online and attached to this post.
 
The Index ranks the 50 states according to 42 different policy measures, including a wide array of tax, regulatory and government spending measurements.
 
The most entrepreneur-friendly states under the "Small Business Policy Index 2014" are:
  1. South Dakota
  2. Nevada
  3. Texas
  4. Wyoming
  5. Florida
  6. Washington
  7. Alabama
  8. Indiana
  9. Colorado
  10. North Dakota
  11. Ohio
  12. Arizona
  13. Utah
  14. Michigan
  15. Virginia
 
"Top-tier policy states like Texas, Nevada, South Dakota, Florida and Wyoming continue to leverage their long-standing policy advantage and are doing things to get even better," said SBE council president and CEO Karen Kerrigan.

In contrast, according to the Index, the most negative policy environments for entrepreneurs are: 

40. Rhode Island

41. Connecticut

42. Maine

43. Iowa

44. Oregon

45. Vermont

46. Minnesota

47. Hawaii

48. New York

49. New Jersey

50. California

 

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South Dakota was the only state to report a decline in personal income in the third quarter of 2014, ranking at the bottom of a recent report from the U.S. Bureau of Economic Analysis. Lower corn prices were a major factor in the 0.2 percent decline in total earnings—a $181 million decrease—and affected Nebraska and North Dakota as well, which finished 49th and 48th among the 50 states.

In South Dakota, seasonally adjusted Farm earnings fell by $413 million from the second quarter of 2014, a 1.04 percent drop. The strongest growth sectors on a percentage basis were Construction (up 0.9 percent) and Finance and Insurance (up 0.11 percent). These two sectors also had the largest gains in total earnings, up $34 million and $44 million respectively.

The drop comes on the heels of very strong growth in personal income in South Dakota in the second quarter of 2014—up 2.3 percent, the fifth fastest in the nation.

The recent personal income report is available from the Bureau of Economic Analysis. The Wall Street Journal published an analysis and an interactive map of the data. 

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Thursday, 18 December 2014 17:00

Rural Job Gains Near Pace for Urban Growth

Job growth in rural America looks nearly as bright as does employment gains in metropolitan areas, reports The Daily Yonder

The numbers don't come close - about 428,000 rural jobs vs. 3.4 million urban jobs - but the pace is close. (Rural equates to any county not in a metropolitan statistcal area, as designated by the federal government.) Rural jobs grew by 2.1 percent between October 2013 and October 2014, while urban jobs grew by 2.7 percent.

The Daily Yonder:

"The pace of job creation is quickening. Rural counties in September had 208,000 more jobs than September a year ago. Rural counties added more than twice that number from October 2013 to October of this year. "

At the same time, the unemployment rate in rural America has dropped below that of urban America - 5.3 percent vs. 5.6 percent (on average). 

Across South Dakota, the unemployment rate is even lower - below 3 percent in most counties. The exceptions are some counties on American Indian reservations, where unemployment reaches into double digits in some instances. Click here for an interactive map that offers county-by-county data by clicking on a given county. 

Explore more statistics on rural jobs, proportion of adults working, and other economic factors in our South Dakota Dashboard Economy and Workforce information hubs.

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Butte County's economy is smaller but growing faster than Lawrence County's economy, reports the Black Hills Pioneer in a story about the Black Hills Knowledge Network's analysis of personal income growth.

Butte County's income growth is being driven in part by a growth in sales, which is being driven by manufacturing.

In inflation-adjusted numbers, gross sales grew by 10.8 percent in Butte County, while they fell in Lawrence County by 15 percent.

Much of the increase in Butte County was driven by an 82 percent increase in gross sales in manufacturing that added more than $23 million to the local economy and a major increase in mining activity that brought in another $7 million.

The number of jobs in Butte County increased by 4 percent between the fourth quarter of 2012 and the fourth quarter of 2013, while the number of jobs in Lawrence County grew 0.8 percent.

Read more about the Black Hills region's Work & Economy on the Black Hills Knowledge Network.

 

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Per-capita consumer spending in South Dakota jumped 14.9 percent since the Great Recession ended in 2009 through 2012, the most recent year for which statistics are available. The Rushmore State has logged the third-fastest growth among the 50 states of this type of spending during that timeframe. (The figures have not been adjusted for inflation.)

South Dakota's spending increase closely trails second-place Oklahoma, with 15.6 percent growth. North Dakota, with its recent explosion of growth in the Baaken oil fields, is nearly double its southern neighbor, at 28 percent growth from 2009 to 2012.

Across the nation, per-capita consumer spending growth from 2009 to 2012 was 10.7 percent, with states in the southeast ranking in the bottom quintile for growth.

The figures come from a report released this week by the U.S. Bureau of Economic Analysis. It is the first data set for the category of consumer spending and is described as "prototype data." The BEA plans to release more refined data in 2015, according to its website.

South Dakota per-capita consumer spending:

  • 2009 - $32,225

  • 2010 - $33,810

  • 2011 - $35,775

  • 2012 - $37,036

North Dakota per-capita consumer spending:

  • 2009 - $34,393

  • 2010 - $36,695

  • 2011 - $40,331

  • 2012 - $44,029

Per capita expenditures on gasoline and other energy goods were highest in 2012 in North Dakota ($3,916), Wyoming ($3,475), South Dakota ($2,521), and Maine ($2,373). Per capita expenditures were lowest in Hawaii ($882), New York ($919), Florida ($1,020), and California ($1,039).

Consumer spending in South Dakota by category, 2012:

  • Healthcare - $7,098 – 8th highest in the country
  • Housing - $5,030 – 10th lowest in the country
  • Food/beverage for off-premisis consumption - $2,859 – 18th highest in the country
  • Gas and other energy - $2,521 – 3rd highest in the country

Over the 15-year period between 1997 and 2012, per capita consumer spending by South Dakotans increased by an average of 6.5 percent, while per capita personal incomes rose on average by 6.7 percent per year. While spending and income patterns may vary widely among individuals, the data suggests that on the whole South Dakotans are living within their means.

 

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Wednesday, 27 August 2014 18:00

Manufacturing Leads Job Growth in South Dakota

Manufacturing led the way for job growth in South Dakota between Febrary 2015 and February 2014, according to recently released ferderal data. That sector added 1,700 jobs year-over-year, followed closely by the Education/Health sector, which added 1,600 jobs.

When looking month-over-month, February 2015 marked South Dakota's best month for jobs growth since June 2014. From January 2015 to February 2015, the state added 3,500 jobs. That followed three straight months of downturns, including a 12-month record drop of 9,600 jobs between December 2014 and January 2015. The February 2015 over February 2014 growth represents a 1.2 percent annual increase in jobs for the state, which now employs 416,500 South Dakotans.

 

 

South Dakota versus the U.S.

Overall, South Dakota added 5,000 jobs from February 2014 to February 2015. That ranks the state 41st among the 50 states for year-over-year job growth and sets us just ahead of neighboring Nebraska, which saw 1.1 percent growth, and ahead of Montana, which tied with West Virginia for last place with 0.3 percent growth.

Utah, with 4.2 percent job growth, edged out neighboring North Dakota for the No. 1 slot. North Dakota logged 4 percent job growth and easily led the region, besting No. 27 Minnesota (1.7 percent growth), No. 30 Iowa (1.6 percent growth) and No. 35 Wyoming (1.4 percent growth).

Education/Health

After 19 months of stagnation, the education/health sector is seeing job growth. Education/Health, which employs 69,700 South Dakotans had a 2.3 percent increase from February 2014 to February 2015. The increase of 1,600 jobs makes it the second highest sector for raw job growth in the state.

The increase follows a full year of slow growth in the past years, when each month saw year-over-year growth in the 0 to 1 percent range. That trend began in June 2013 after a year of high growth in the 2 to 3 percent range.

Financial Industries

Recent data reinforces the previous year trends of job loss in the financial services sector. This sector was one of only three industries to show decline from February 2014 to February 2015 and has consistently shown negative numbers since June of 2014.  Financial Services lost 400 jobs, marking a 1.4 percent decrease industry wide.

Government

After posting large gains in 2014, government sector job growth has tapered off. The sector came to a halt in January of 2015 with zero new jobs over the previous year. February 2015 saw only 200 more jobs over the previous year. The growth rate comes in at only 0.3 percent, rounding off at 78,400 jobs in the government sector.

Leisure/Hospitality

The industry continued shedding jobs on a four-month trend that followed a year of job growth in the leisure/hospitality sector. In December, the industry was down 700 workers from 2013 to 2014. In January 2015, job losses were even higher at 1,200, and in February the industry had 700 fewer workers than the previous year, a 1.7 percent decline for the 40,900-member workforce.

Manufacturing

Substantial growth continued in the manufacturing sector in 2015, with 3.9 percent increase year-over-year in January and 4.1 percent for February. This increase comes after an eight month growth trend that began in July 2014. This brings 1,700 more jobs in February 2015 than in 2014, for a total of 43,000 employees.

Mining/Logging/Construction

This sector had one of the largest percentage increases for any industry in February 2015.  With an increase of 900 jobs year-over-year for February 2015, the Mining/Logging/Construction sector saw a 4.9 percent growth rate.

Professional/Business Services

The category of professional/business services was down 1.4 percent in South Dakota for February 2015 over the previous year, losing 400 jobs. That brings total workers in this sector to 29,100 and follows a declining trend that began in October of 2014.

The slow-down in this sector follows a more volatile trend throughout 2012 and into 2014. Before that, the industry had posted strong growth consistently, going back to 2011.

Wholesale Trade

The wholesale trade sector continued over a year of steady job growth, with February’s numbers strong as 1,000 jobs were added a 5 percent growth over February 2014. January posted a 4.5 percent growth rate with 900 more jobs over January 2014. The industry employs 21,200 people.

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Per-capita consumer spending in South Dakota jumped 14.9 percent since the Great Recession ended in 2009 through 2012, the most recent year for which statistics are available. The Rushmore State has logged the third-fastest growth among the 50 states of this type of spending during that timeframe. (The figures have not been adjusted for inflation.)

South Dakota's spending increase closely trails second-place Oklahoma, with 15.6 percent growth. North Dakota, with its recent explosion of growth in the Baaken oil fields, is nearly double its southern neighbor, at 28 percent growth from 2009 to 2012.

Across the nation, per-capita consumer spending growth from 2009 to 2012 was 10.7 percent, with states in the southeast ranking in the bottom quintile for growth.

The figures come from a report released this week by the U.S. Bureau of Economic Analysis. It is the first data set for the category of consumer spending and is described as "prototype data." The BEA plans to release more refined data in 2015, according to its website.

South Dakota per-capita consumer spending:

  • 2009 - $32,225

  • 2010 - $33,810

  • 2011 - $35,775

  • 2012 - $37,036

North Dakota per-capita consumer spending:

  • 2009 - $34,393

  • 2010 - $36,695

  • 2011 - $40,331

  • 2012 - $44,029

Per capita expenditures on gasoline and other energy goods were highest in 2012 in North Dakota ($3,916), Wyoming ($3,475), South Dakota ($2,521), and Maine ($2,373). Per capita expenditures were lowest in Hawaii ($882), New York ($919), Florida ($1,020), and California ($1,039).

Consumer spending in South Dakota by category, 2012:

  • Healthcare - $7,098 – 8th highest in the country
  • Housing - $5,030 – 10th lowest in the country
  • Food/beverage for off-premisis consumption - $2,859 – 18th highest in the country
  • Gas and other energy - $2,521 – 3rd highest in the country

Over the 15-year period between 1997 and 2012, per capita consumer spending by South Dakotans increased by an average of 6.5 percent, while per capita personal incomes rose on average by 6.7 percent per year. While spending and income patterns may vary widely among individuals, the data suggests that on the whole South Dakotans are living within their means.

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Wednesday, 14 August 2013 00:00

Tourism Tax

Gains In Metro Areas Drive SD Tourism Tax Upward Trend

Taxable tourism sales in South Dakota increased 11.5 percent over 2015, continuing a five-year upward trend. The state recorded an eight-year high of nearly $831 million, up from $745 million in 2015 (all figures are inflation-adjusted for 2016 dollars). 

Taxable tourism sales in the Rushmore State’s metropolitan communities increased by 8.6 percent from 2015-2016 to more than $439 million. The Rapid City, Sioux Falls and Sioux City metro areas accounted for 52.9 percent of the state's tourism tax receipts in 2016, down from 55.1 percent in 2015 and 54.6 percent in 2016.

The Black Hills region—driven largely by the Pennington, Lawrence, Meade and Custer counties—delivered nearly half of the state's taxable tourism sales in 2016. Pennington County (home to Rapid City and Mount Rushmore) maintained its commanding lead, netting 27.4 percent of the state's taxable tourism sales in 2016. 

No. 2 Minnehaha County (home to Sioux Falls) put up nearly half of Pennington’s share at 14.1 percent. No. 3 was Lawrence County (home to Deadwood) at 8.7 percent, followed by No. 4 Meade County (home to Sturgis) at 5.6 percent and No. 5 Custer County at 4.4 percent. 

Lodging accounts for the vast majority of the state's taxable tourism sales. That sector made up 56 percent of taxable tourism sales in 2016. The No. 2 sector, shops and markets, accounted for 9 percent of taxable tourism sales in 2016, down from the six-year high of 14.8 percent recorded during a 2010 spike in taxable tourism sales. No. 3 visitor attractions accounted for 8.6 percent of taxable tourism sales in 2016, continuing a steady slide since 2009 when it was 12 percent.

Recreational services and rentals accounted for 5.4 percent in 2016, down from a five-year high of 11.1 percent in 2011. Restaurants totaled 3.7 percent in 2016, an eight-year high for that sector. Spectator events and "other visitor-related businesses" represented less than 1.0 percent, and 1.2 percent, respectively. 

 

Published in Economy

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Rapid City, SD 57701
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