(Source & Credit: IBISWorld) – New numbers have been released on the state of North Dakota’s economy in 2022. The numbers are provided by IBISWorld, which provides economic and demographic research for businesses and governments around the world.
North Dakota’s Population
In 2022, the state of North Dakota had a population of 777,525, having grown an annualized 0.5% over the five years to 2022, which ranks it twenty-sixth out of all 50 U.S. states by growth rate.
North Dakota’s Gross State Product (GSP)
State GSP, or Gross Domestic Product (GDP), is a measurement of a state’s output, or the sum of value added from all industries in the state. It is a common indicator used to track the health of a state’s economy.
North Dakota’s GSP in 2022 reached $54.6b, with growth of 0.2% over the 5 years to 2022. North Dakota’s GDP has declined at an annualized rate of -2.0% over the five years to 2022. Moreover, North Dakota’s trailing five-year GDP growth ranks it forty-fourth out of all 50 states.
Businesses in North Dakota employed a total of 411,928 people in 2022, with average annual employment growth over the past five years of -0.3%.
The top three sectors by total employment are Mining, Agriculture, Forestry, Fishing and Hunting, Real Estate and Rental and Leasing, while the unemployment rate across the state in 2022 was 2.8%.
What Employment Trends are Impacting North Dakota?
The state of North Dakota employs 411,928 people in 2022, which ranks it forty-eighth out of all 50 US states. Employment in North Dakota has grown at an annualized rate of 1.0% over the five years to 2022, underperforming the national average of 3.7%.
Major sectors by employment in North Dakota include Healthcare and Social Assistance, Retail Trade and Accommodation and Food Services, which employed 77,600, 57,807 and 32,704 people in 2022, respectively. North Dakota’s unemployment rate is 2.8% in 2022, which ranks it eleventh out of 50 states.
North Dakota’s unemployment rate has trended upwards at a rate of 1.7% over the five years to 2022, underperforming the U.S. economy as a whole.
What is North Dakota’s Per Capita Disposable Income?
Per capita disposable income, also known as disposable personal income (DPI), is the amount of money that the average person in an economy has available for spending and saving after accounting for income taxes.
North Dakota’s DPI in 2022 was $63.9k, compared to the US average of $56.6k, which places it thirty-fifth out of all 50 US states.
Disposable income is regarded as a key economic indicator as trends in disposable income are indicative of the level of aggregate demand, the state of labor markets and the financial strength of households.
What Construction Trends Tell Us About North Dakota’s Economy?
In North Dakota, non-residential construction was $1.2b in 2022, which ranks it ninth out of all U.S. states.
Residential construction was $16.3m in 2022, which places North Dakota tenth in the United States. The number of building permits issued in North Dakota in 2022 was 3,397, representing a -1.7% annualized growth rate between 2017 and 2022.
Trends in the construction sector are important because it creates jobs, income and tax revenue for a state. In addition, construction sector activity impacts other sectors in its supply chain, including manufacturing, wholesaling, warehousing, transportation, and real estate, rental and leasing services. Therefore, construction trends are important indicators of the health of an economy.