Unemployment

Unemployment rising in Sioux Falls? No surprise.

l3wis March 11, 2010 8Comments

I said it all along, just because the recession hit us late doesn’t mean it will leave early, in fact, I think it will take Sioux Falls longer to recover, just like in the 1990’s. But don’t take my word on it, just listen to Augustana economics professor Nesiba;

He said that one of the problems particular to Sioux Falls is not so much unemployment – which tends to be lower than in many parts of the country – but “persistently low wages.“

This has been a problem for a long, long time. Even when times are good, it seems business finds a way to keep wages low here.

“There are plenty of people in Sioux Falls that have multiple jobs,” Nesiba said. “Women with school-aged children here have high labor force participation rates. It isn’t because this is such a great place to work. It’s because two or three incomes are needed to get by.”

I can’t even remember in the 18 years I have lived in Sioux Falls that I did not have at least two jobs, at one time I even had four. For someone who is single, there really is no reason I should have to have two jobs to get by.

With a U.S. population of 300 million and a labor supply of about 150 million people, a 10 percent national unemployment rate means you have 15 million people out of work, Nesiba says.

“If you add in discouraged workers who have dropped off unemployment rolls or those who want more work, you get a number like 16 percent unemployment,” he said. “That’s a lot of people we need to put back to work.”

Those are the secret numbers that neither Washington, Pierre or SF City Hall want you to know about.

Nesiba said that even if the country could add 200,000 or 300,000 jobs per month – a rate not seen for a long time – a high unemployment rate is probable for years to come.

“I fear we’re going to have high and persistent unemployment for some time,” he said. “The advantage in South Dakota, and Sioux Falls in particular, is that we have lower unemployment than the rest of the nation. But the question is, how do we create higher living wages and jobs for middle-class people? I don’t see the leadership at the state or city level for that.“

That’s because the State’s and Sioux Falls’ motto has always been, “Business first, citizens second.” They are all bought and paid for. Just look at Pat Costello’s donor list. I hope Sioux Falls residents wake up and elect an honest fiscally conservative mayor and council for once.