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January 2000

State Roundups
South Dakota

South Dakota's version of the deer hunt going to the birds

In Minnesota, Wisconsin and the Upper Peninsula of Michigan, deer hunting is the biggest complement to fishing when it comes to outdoor economic development. But in South Dakota, the pheasant is king.

From mid-October to mid-December, pheasant hunters are expected to have flushed $100 million into the state. This year's hunt was also enhanced by a big increase in the number of birds—this after huge losses of birds just two years ago due to a severe winter.

Pheasant hunting is strongest in the eastern half of the state—not coincidentally, also the heart of agriculture, which provides good habitat for pheasants. Given low grain and livestock prices, many farmers supplement their incomes by renting land to hunters, particularly on the opening weekend, when as many as 100,000 hunters try their luck.

Workers receive good news, bad news on wage front

A recent governor's task force reported that South Dakota workers had the lowest average wages of any state in the country at $21,645, almost $9,000 below the national average. The study cited a lack of advanced education—the result not of poor education but of "education flight" upon graduation-low union membership and lack of large firms as a few of the reasons for low wages.

The good news is that the state's low tax burden lets workers keep a larger portion of their income, giving them as much buying power as those making higher wages in higher-tax states, the report said.

The report also cited the state's relative lack of metropolitan areas, which typically offer higher wages across the board. A recent analysis by the Sioux Falls Argus Leader showed that Sioux Falls wages in the state's top 10 fastest growing jobs paid wages comparable to the same jobs in Minneapolis. A tight labor market and weather (seen as a deterrent to labor migration) are two factors believed to be exerting upward pressure on wages.