I was thinking about the labor force increase during the Bakken oil boom and wondered how it stood up against streaks in other states. The answer surprised me.
The economic definition of labor force is a bit different from the conventional view. The labor force is employed plus unemployed, who by definition are those without a job but looking for work. I bring this up to avoid any confusion with the variable actually being forecast.
Labor force participation is a frequent topic of conversation on the radio these days so it seemed appropriate to actually share the graphs that I often show JT when the topic comes up.
I argued before that North Dakota is labor-constrained. My thinking on this went through multiple iterations, and I continue to try and refine this. In particular the data to demonstrate this most clearly just may not exist at this time, but I continue to pursue it. Here is the state of wages from Q1 2017 by county in North Dakota.
Many people ask me about the challenges for the North Dakota economy moving forward. This is much more difficult to do than it may seem; there are no easy answers here. There are many reasons for this. What seems to be an problem now may resolve itself of its own accord in the near future. It could also be the case new problems arise as a result of federal policy or technological innovations. As Yogi Berra said, “Predicting things is hard. Especially about the future.”