Service Industry Fuels Employment Growth in North Dakota

Total employment in North Dakota rose an average of 2 percent per year between 1990 and 1998 according to the latest Population Bulletin released from the North Dakota State Data Center at North Dakota State University. Ten North Dakota counties experienced overall losses in employment between 1990 and 1998; Billings (-9.2 percent), Slope (-7.0 percent), Burke (-5.9 percent), Walsh (-5.7 percent), Adams (-5.3 percent), Golden Valley (-3.7 percent), Logan (-2.8 percent), Oliver (-2.3 percent), Sheridan (-1.3 percent), and Nelson (-0.2 percent).

The service sector continues to be the largest employer in the state, employing approximately 125,000 persons in 1998 or 28.3 percent of all ND employees. In addition, service employment has risen nearly 5 percent per year on average since 1990 making it one of the fastest growing industries in the state.

"The service sector offers new opportunities for many rural areas in our state," said Richard Rathge, director of the center. "It is at the heart of the new economy and is less dependent on traditional barriers such as geographical distance. The information age, for example, allows us to touch international markets through cyberspace. However, our leadership has to be visionary enough to explore new technologies and new ways of thinking regarding economic development if we are to take advantage of this emerging new industry. Equally important, our policy makers have to be bold enough to invest in new initiatives if North Dakota is to be successful in the new service economy," said Rathge.

Retail trade was the second largest employer in 1998, capturing 17.1 percent of all ND employees, while the government sector was third, employing 16.2 percent.

For 23 North Dakota counties, the service industry employed more than one-fourth of their workers. North Dakota earnings in the service industry averaged $ 20,382 per job in 1998.

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Source: Richard Rathge, (701) 231-8621, richard_rathge@ndsu.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu

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