Report says North Dakota’s 2022 economic outlook is strong
BISMARCK, N.D. (AP) — The latest economic outlook report for North Dakota is showing continued improvement for 2022, despite a national economy that shrank in the first quarter and is showing signs of entering a recession.
The quarterly report by the University of North Dakota predicts growth in wages and salaries, as well as a growing labor force with decreasing unemployment rates, strong total tax collections and a rising gross state product.
“When the rest of the economy is hitting a recession, we’re often experiencing growth. And that’s what we see on a lot of the most recent analysis, is that North Dakota is actually looking to have economic growth while the rest of the economy is hitting a recession,” said Dr. Jeremy Jackson, MDSU economics professor and author of the report.
Jackson says one reason to expect economic growth in 2022 is that North Dakota is one of the few states in the nation that’s a net exporter. For example, when oil prices are high, costs increase everywhere, but in North Dakota, that cost increase is tied to a wage increase, Jackson told KFYR-TV.
Consistent with the previous forecast, the labor force grew by nearly 1% in the first quarter of 2022. The report said this growth is expected to continue over the next year. The state unemployment rate is forecast to hold steady near its current level of about 3%.