Nov. 25, 2020

South Dakota has regained 95 percent of the workers lost in April because of the pandemic, according to an overview from the Labor Department.

Employment figures dropped by 33,600 people, or 7.5 percent, from March to April, but gains began to occur the following month.

“The number of employed has been steadily rising since the initial shock,” the Labor Market Information Center reported. “As of the October 2020 employment estimates, South Dakota has gained back roughly 95 percent (32,000) of the employment lost in April.”

Here are a few highlights from the analysis:

• Leisure and hospitality took the biggest hit, losing 37.4 percent of workers in April, dropping by 15,800 workers to 26,500. Temporarily closed businesses began to reopen in May and staffing increased by 8,300 workers. Levels continued to climb until October, when they dropped by 100 workers. “However, this is typical, as seasonal establishments in tourist destinations reduce staff to match the decrease in visitors as weather turns colder.”
• Retail trade worker levels dropped to their lowest point in a decade. The sector dropped to 45,900 workers in April, a loss of 4,000 workers, or 8 percent. Gains continued throughout the summer, reaching 50,000 workers in August. Seasonal dips nudged that level to 49,800 in October.
• Manufacturing has lost 700 workers, or 1.6 percent, since January. “The overall decline in manufacturing is a culmination of small worker declines within a number of South Dakota companies simply outweighing workforce additions at other manufacturers. The pandemic could be tagged as partially responsible on both sides. While some manufacturers found opportunities for new or expanded product lines in response to COVID-19, others had to reduce production in response.”
• Construction worker levels climbed steadily from January to July, hitting a 10-year high with 28,700 people employed. “Once COVID-19 hit the state, many people were encouraged to stay home to slow the spread. While spending more time at home, many South Dakotans focused on home improvements, increasing the demand for workers in construction. Projects have included creating a home office for working remotely and updating outdoor spaces to relax at home.” With seasonal downward trends, levels dropped to 27,500 workers in October.

The pandemic’s impact on the total number of businesses and organizations reporting employment and wages has not been as severe as it has been on employment levels, according to the Labor Market Information Center.

“The total number of establishments rose 0.1 percent from first quarter to second quarter 2020, indicating many South Dakota employers were able to remain in business but cut staffing levels,” the LMIC said, noting that some industries such as leisure and hospitality took significant hits in the number of surviving establishments.

The state’s jobless rate continues to improve from its record high of 10.9 percent in April. The seasonally adjusted figure was 3.6 percent in October, compared with 4.1 percent in September. That represents 16,900 people who do not have jobs, have actively looked for one in the past four weeks and are available to work. The rate was 3.4 percent in October 2019.

Unemployment figures in the Sioux Falls area also continue to head in a positive direction. The jobless rate dropped to 3 percent for October, compared with 3.4 percent in September. That represents 4,624 people who are looking for work.

In October 2019, the metro area’s unemployment rate was 2.6 percent. That figure had climbed to 10.5 percent in April as businesses shut down because of the pandemic.

From September to October, nonfarm wage and salaried worker levels in the Sioux Falls area dropped by 800 people. The largest decline was in the leisure and hospitality industry at 8 percent, a loss of 1,200 workers. The total of 13,800 workers is an 11 percent decline compared with a year ago. Mining, logging and construction lost 400 workers, a 4 percent drop. The biggest gain at 1.7 percent was in the retail trade sector with 300 additional workers.

Other large cities in South Dakota showed improvements in unemployment last month. Vermillion’s jobless rate increased one-tenth of a percentage point. Brandon’s rate was unchanged. Most of the figures are comparable with a year ago.

• Rapid City MSA, 3.7 percent vs. 3.2 percent
• Aberdeen, 3.3 percent vs 3.1 percent
• Brandon, 2.8 percent vs 2.8 percent
• Brookings, 3.4 percent vs 3.3 percent
• Huron, 3.2 percent vs 3 percent
• Mitchell, 3 percent vs 2.7 percent
• Pierre, 2.3 percent vs 2.3 percent
• Spearfish, 3.4 percent vs 3.2 percent
• Vermillion, 3.5 percent vs. 3.5 percent
• Watertown, 3.6 percent vs. 2.8 percent
• Yankton, 3.9 percent vs 3 percent.

The seasonally adjusted national unemployment rate in October was 6.9 percent, down from 7.9 percent in September. A year ago, it was 3.6 percent.