Saturday, August 17, 2013
The Bismarck (N.D.) Tribune: The high wages in North Dakota’s western oil-producing counties received the headlines when North Dakota Job Service released figures for 2012. The Tribune story was topped with: “Oil patch pays highest.” Perhaps more important was the 10 percent increase in wages statewide. The cliche “a rising tide lifts all boats” would seem to be proved out.
The top four counties for wages, think oil patch, saw annual averages ranging from $68,800 to $78,400.
Oil trumped coal. Historically, it was the mining of lignite and operating coal-fired power plants that paid best in North Dakota. For years Oliver, Mercer and McLean counties lead the way on pay. Now it’s Williams, Slope, Dunn and McKenzie counties — ground zero for the Bakken formation.
Frankly, North Dakota’s wages and benefits have for years lagged behind the rest of the country. The state’s citizens would mutter that it was OK because of the lower cost of living, a thin economic soup for a family paying bills. But the spinoff from oil exploration and production, along with long-term higher commodity prices, has improved the statewide average salary to $45,900.
The strong economy and prolonged low unemployment rate have forced businesses to raise pay in order to attract and keep workers.
North Dakota’s economic model is changing. The improved salaries are here to stay, not just because oil is here to stay, but also because of the work the state has done in diversifying its economy.