SIOUX FALLS, S.D. (AP) - An economist said South Dakota’s growth is expected to continue at a slow pace in the next two years.
University of South Dakota Beacom School of Business professor Mike Allgrunn told the Argus Leader (https://argusne.ws/2eZwaI6 ) tight labor markets are keeping the state from growing at a faster pace. But he said a more educated labor market is a good thing in the long run.
About 17.6 percent of the state’s population had a bachelor’s degree, and in 2014, it was 20 percent. Allgrunn said higher education should lead to higher wages, more productivity and different kinds of jobs.
Allgrunn predicts that the state GDP will grow at 1.9 percent this year and 2.4 percent in both 2017 and 2018. He projects 1.2 percent employment growth next year.
“We are still sort of coming out of the Great Recession of 2008,” Allgrunn said. “We did not come out of this recession very quickly, and rather than the rapid growth you usually see during a recovery, we saw slow, relatively stagnant growth.”
In South Dakota, “it’s for the most part better,” he said. “We have seen employment growth in South Dakota, which is pretty impressive considering nearly everyone already has a job.”
The state’s labor market also is becoming more educated. For example, in 2006, about 17.6 percent of the population had a bachelor’s degree. In 2014, it was 20 percent.
“That’s probably a good thing in the long run for South Dakota,” Allgrunn said. “Higher education should lead to higher productivity and different types of jobs and higher wages. It can be difficult if you’re looking for people at the lower end of that as workers.”
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Information from: Argus Leader, https://www.argusleader.com
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