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.

8 Thoughts on “Unemployment rising in Sioux Falls? No surprise.

  1. Poly43 on March 11, 2010 at 7:01 am said:

    “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.”

    I would add that 16% is a lowball number. Probably much higher than that. Many years ago, I worked in the construction trades. Still maintain many friendships in that arena. In my day, this was the time of year we geared up for a busy year by working 40 to 6o hours week from now til the snow fell again. Then we dropped back down to a 40 hour week. Not so anymore. Hundreds, if not, thousands of workers in the trades are working at drastically reduced hours. And that prospect does not look to be getting any better anytime soon. These guys are hangin on by the skin of their teeth. Many are going to lose that grip as reduced working hours appear to be going in that trend for many more months to come.

    Another example. Next time you see a crew out working on potholes, or manning the trucks or tractors for snow removal, keep this in mind. Two out of every three are probably temporary employees. Employees who by city contract cannot work more than 1400 hours in a year. $11.00 bucks an hour, no bennies, and most importantly, no health insurance. Work the hell out of em til their 1400 hours are up, then say “see ya”, and hire a new batch of suckers who think that somehow this might lead to a fulltime position. It’s not just the city that does this…many, many companies pull off the same bullshit scam.

    L3wis, you say you have worked many jobs here in SF for the past 18 years. Correct me if I might be wrong, but I would guess many of those jobs are filled by people working less than 32 hours a week so management can skirt fulltime bennies like health insurance?

  2. Plaintiff Guy on March 11, 2010 at 10:00 am said:

    Good fill Poly. Agreed, real numbers always worse.

    On the other hand; a mayor’s assistant can make 100K/year and full time city employees are paid well above national average with full and complimented benefits. To me, a city employee is the biggest scam here. Yes, contractors are used but they are schemed via the 3 robber barons on the council. There’s no ‘competitive bids’, just ‘usual (the 3 only) bid process’.

    Sell your house while there’s still a market. Move to an outside community. They’re still growing because they are constitutional democracy where corruption can’t exist and citizens have a voice. Sioux Falls is decaying from Munson’s reign. Eventually, you’ll drive through downtown where barrels are lit to keep the homeless warm. Building walls will fall and not be repaired. A car jacking or liquor store holdup will be just another weekday. You’ll walk by addicts not sure whether they are alive or deceased.

  3. L3wis:

    “I think it will take Sioux Falls longer to recover, just like in the 1990’s.”

    The only Recession we had in the ’90s lasted all of 8 months.

    L3wis:

    “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.”

    Okay..but did you consider any of these your “career” or were these simply “jobs” to cover your living expenses while you pursued your artistic avenues? There’s major differences between a job and a career and if you are unaware of them I’ll submit that is directly related to your perceived value to a potential employer.

    L3wis:

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

    That’s a relatively new phenomenom. Under the last Admin. the numbers of underemployed were always mentioned alongside what looked like (and actually were) excellent unemployment statistics.

    L3wis:

    “Business first, citizens second.”

    Besides possibly a nice commission, has a citizen ever given you a job or better yet a career? This Economy does best when small businesses can hire an employee or two at a time. Take that number and multiply it by the neearly 30 million small businesses that are in this Country and there’s the heavy lifting. It’s been that way for generations. The current climate in no way incentivises this activity, actually the reverse. You can lay the blame for this squarely on the current ruling class of DC..none of whom have clue 1 on how to run a business or even work an 8 hour shift producing something of value.

    We have several potential 6 figure hits that will come via legislation on the horizon and at this point we don’t know which (if any) can be stopped. Credit is next to impossible to come by even if your ratios and business plans are sound. Costs of all kinds are rising and profits are becoming a dirty word for some strange reason. All of this adds up to small businesses holding back their plans to grow until they can actually see what’s coming.

    God only knows when that will be.

  4. Poly43 on March 11, 2010 at 3:50 pm said:

    There’s major differences between a job and a career and if you are unaware of them I’ll submit that is directly related to your perceived value to a potential employer.

    ~Sy

    There were 135,110 jobs in this town as of September 2009. 33,777 of those jobs pay less than $10.62 an hour. 67,555 of those jobs pay LESS than $14.00 an hour. A good percentage of city employees work for $11.00 an hour or less with ZERO benefits. Same for county jobs. Same for state jobs. Same for federal jobs. Same for some private industry jobs.

    You’re right. There is a major difference between a job and a career. The problem is employers treat most everybody like they’re lucky to have a job, let alone a career.

  5. Poly:

    “There were 135,110 jobs in this town as of September 2009. 33,777 of those jobs pay less than $10.62 an hour. 67,555 of those jobs pay LESS than $14.00 an hour….”

    and those numbers have been set by the marketplace via the nonjudgmental rules of supply and demand.

    Force them to pay your “living wage” and you’ll see about 100K of them vote with their feet, the only question is will they go to a neighboring State, Canada or overseas. What good is 35K jobs that pay $25 an hour if you have 100K unemployed or moved away?

  6. Poly43 on March 11, 2010 at 4:35 pm said:

    Force them to pay your “living wage

    You seem to have a problem with a “living wage”. That’s all working people want. A wage that keeps them out of a welare state. You think those numbers I gave out are FAIR just because of nonjudgmental supply and demand? I think not.

    BTW. You still owe me a drink. And I think I want that drink at Foley’s. Took my wife there last week for our 40th. Fair food, a couple of drinks, and a bill for $180.00. When we first met, we could sit in the “Barrell” all night long for two bucks. Yeah, I know. Join the 21st century. That’s the problem. Today’s middle class is the working poor. There was a time when there really was a middle class.

  7. Poly:

    “You seem to have a problem with a “living wage”.

    I do, because it is subjective and ambiguous. It implys a person’s lifestyle should dictate what they are paid.

    You and I have been down this road before though, and you know I have no issue paying people top dollar in exchange for their best performance. I don’t care if they live like a prince or pauper.

  8. Oh..and sure…we need to have that drink soon. Lot’s of time between now and football season.

    How about a Spring SDColafest L3wis?

Post Navigation