SIOUX FALLS, S.D. (KELO) — For at least two years Gov. Kristi Noem has cited South Dakota’s economy as one of the strongest. The latest ranking by Wallethub shows the state has toppled from any top spot it may have had.
Wallethub is a personal finance group that does research on economic factors and analyzes data.
South Dakota is ranked 43rd in best and worst economies. The best economy is in Washington.
The rankings are based on several factors including the change in the gross domestic product (GDP), start-up activity, growth in state personal income, business growth and others. It then grouped those findings into the three categories of economic activity, economic health and innovation potential.
South Dakota ranked 43rd in economic activity, fifth in economic health and 50th in innovation potential for the overall rank of 43.
The state’s GDP declined by 4.3% from the third quarter of 2022 to the fourth quarter of 2022, according to the Bureau of Economic Analysis (BEA). South Dakota was one of three states with a decline. The GDP refers to the overall production of goods and distribution of goods in a state.
The state has had increases in personal income, but so have many other states. And its growth has not been at the pace of other states. The personal income and other factors were evaluated as part of the economic health of the state.
Personal income in the state increased by 4.1% from 2020 to 2021, according to the BEA. It increased by 3.3% from the third quarter of 2022 to the fourth quarter of 2022. The Federal Reserve of St. Louis said the state’s personal income was $65,806 in 2022 which was up from $64,405 in 2021. The Census Bureau said the median income in 2021 was $63,920.
Minnesota posted a 5.8% increase in personal income from the third quarter of 2022 to the fourth quarter. Alabama had a 7.3% increase. Iowa had a 3.6% increase.
The Wallethub analysis also analyzed STEM jobs in each state as part of an evaluation of innovation potential The Bureau of Labor and industry experts project increased growth in STEM jobs in the future. The BLM said jobs could increase by almost 800,000 by 2031.
South Dakota did not rank in the top tier of jobs for STEM majors in an evaluation by ISE ICT Solutions & Education in 2020. Smartasset in 2023 did not list it as a state with fast-growing STEM opportunities.
Industry publications and analysis do not list South Dakota on top 10, top 5 or top 20 lists for start-ups over the past several years.
In 2021, Advisor Smith did rank South Dakota as the 7th best state for an entrepreneur. It said it evaluated “personal and corporate tax policies, rates of business formation and hiring for new businesses, funding availability, and business survival rates.”
