Is Sioux Falls’ 3.5% unemployment rate America’s future?
Share Now on:
The halting pace of the economic recovery is all too apparent, despite glimmers of hope in housing and other sectors. But in some places, the recovery has ended and the economy is in expansion mode.
One of those places is Sioux Falls, South Dakota, a city which Marketplace host Kai Ryssdal said has more to do with the American and global economy than you might think.
“I was at a food processing plant two days ago where they are making pre-packaged meals that will in probably a week and a half be on lunch trays for kids in the Los Angeles Unified School District.”
And the economy of Sioux Falls looks pretty darn good. Unemployment is at 3.5 percent, compared to the national rate of 7.4 percent. And this week, Capital One just announced they are bringing 175 new jobs to town.
But here’s the catch: 3.5 percent unemployment is actually, if you ask economists, too low. There isn’t enough turnover between jobs and companies can’t find the employees they need. In fact, local business leaders in Sioux Falls say that when they work to woo new companies to come open stores in Sioux Falls, the companies first question is about that unemployment rate: With so few unemployed workers, how will firms find the employees they need?
Explore the Story Map: Read regular updates from James Fallows during his travels across the country. And explore related interactive maps. More
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.