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Labor Market Information Center

2022 Annual Report

Quarterly Census of Employment and Wages

Trade, Transportation and Utilities Supersector

The Trade, Transportation and Utilities supersector is comprised of the Wholesale Trade sector, the Retail Trade sector, the Transportation and Warehousing sector and the Utilities sector. Businesses within this supersector sell or arrange the sale of goods and supplies and retail merchandise to the public, provide transportation of passengers or cargo or generate and/or distribute electricity, gas or water.

Wholesale Trade

NAICS Sector 42

The Wholesale Trade sector comprises establishments engaged in wholesaling merchandise and rendering services incidental to the sale of merchandise. The wholesaling process in an intermediate step in the distribution of merchandise as they sell merchandise to other businesses and normally operate from a warehouse or office.

Wholesale Trade worker levels continued trending upward in 2022, adding 491 workers (2.3%). This sector went from 21,465 workers in 2021 to 21,956 in 2022. Average annual pay had a 7.8% growth over the year with an increase of $5,573. With a 2022 annual pay of $76,603, this sector is ranked sixth in highest annual pay among all the sectors in 2022. Gains in Wholesale Trade correlates with the growth in Manufacturing. As the supply grows, so does the need for additional workers to handle the demand.

Merchant Wholesalers, Durable Goods (NAICS 423) was the only subsector within Wholesale Trade to produce worker level gains from 2021 to 2022. This subsector added 544 workers (5.2%), reaching 11,077 workers in 2022. The average annual pay increased $5,941 (7.7%). Businesses in this subsector sell capital or durable goods to other businesses. Durable goods are new or used items that have a normal life expectancy of three years or more. They include construction equipment, farm machinery, furniture, computer equipment, jewelry and household appliances. Gains were spread throughout many of the industries as establishments grow their workforce in order to keep up with demand. The top three contributors to worker level growth in Merchant Wholesale, Durables Goods were in the following industries:

• Professional and Commercial Equipment and Supplies Merchant Wholesalers (NAICS 4234)
• Household Appliances and Electrical and Electronic Goods Merchant Wholesalers (NAICS 4236)
• Machinery, Equipment, and Supplies Merchant Wholesalers (NAICS 4238)

The Merchant Wholesalers, Nondurable Goods (NAICS 424) subsector had a loss of 47 workers (0.4%). The annual pay increased $5,062 (8.0%), reaching a 2022 average annual wage of $68,541. Establishments in this industry sell nondurable goods to other businesses. Nondurable goods generally have a normal life expectancy of less than three years. They include paper and paper products, drugs, petroleum, food, apparel and newspapers. Worker losses in this subsector were largely in Farm Product Raw Material Merchant Wholesalers (NAICS 4245) and Miscellaneous Nondurable Goods Merchant Wholesalers (NAICS 4249).

The last subsector group in this industry is the Wholesale Trade Agents and Brokers subsector (NAICS 425). This subsector had a loss of six workers (1.3%) in 2022, dropping to 467 workers in 2022. Despite a loss in employees over the year, this subsector’s annual pay increased by $1,347 (1.2%). This subsector has the highest annual pay out of the three subsectors with a 2022 annual wage of $113,221. Brokers and agents in this subsector act on behalf of buyers or sellers in the wholesale distribution of durable or nondurable goods. The pay structure is usually salaried with distribution of bonuses and profits, resulting in some years where pay is more elevated.

Retail Trade

NAICS Sectors 44-45

Retail Trade worker levels rose 2.7% with the addition of 1,398 workers in 2022. Annual pay increased $1,715 (5.0%) to $35,881. Retail Trade is ranked third out of all sectors in the number of establishments (3,955) and second in employment (52,904 workers) in South Dakota. Establishments in Retail Trade employ many part-time workers, with many arranging their schedules around school, family responsibilities or another job. Seven out of the nine Retail Trade subsectors had gains in worker levels, and every subsector had growth in annual pay from 2021 to 2022.

Gains in Retail Trade are related to population growth and increases in demand. The U.S. Census Bureau estimated South Dakota’s population at 909,824 in July 2022 compared to 896,164 in July 2021. As cities around the state expand, so does the need for additional establishments in Retail Trade to meet residents' demand. South Dakota added 83 establishments in Retail Trade in 2022. The demand for services provided by establishments remained strong in 2022. From online shopping with delivery or pick-up options or strolling the aisles of a store, there is an option for everyone. While most of the services started due to public health reasons in 2020, many have continued and expanded due to convenience. The options for shopping are endless, and this sector will continue to evolve along with with technology advancements.

General Merchandise Retailers (NAICS 455) added the largest number of workers from 2021 to 2022. This subsector added 619 workers (7.2%), climbing to 9,258 workers in 2022. Annual pay increased $1,909 (6.8%). Department stores, supercenters, dollar stores and general stores are the type of establishments included in this subsector. Growth in the General Merchandise Retailers subsector occurred primarily in Warehouse Clubs, Supercenters, and Other General Merchandise Retailers.

Sporting Goods, Hobby, Musical Instrument, Book and Miscellaneous Retailers (NAICS 459) also had strong gains from 2021 to 2022, adding 335 workers (6.6%). The average annual pay increased $609 (2.1%), reaching $29,688. This subsector added 38 establishments in 2022. Industries in this subsector are involved in retailing sporting equipment, musical instruments and other specific leisure activities. Sewing supply stores, florists, bookstores, hobby shops, pet supply stores and toy stores are examples of establishments included in this subsector.

Motor Vehicle and Parts Dealers (NAICS 441) added 47 workers (0.6%) in 2022. The average annual pay increased 5.3%, increasing $3,081. With a 2022 average annual wage of $61,108, the Motor Vehicle and Parts Dealers subsector has the highest annual wage in Retail Trade. Boat dealers, utility trailer dealers, new and used car dealers, auto supply stores and tire dealers are examples of establishments in this subsector. This may be because of the bigger-ticket items sold in this sector, with sales forces sometimes earning commissions or bonuses based on sales records.

Gasoline Stations and Fuel Dealers (NAICS 457) gained 246 workers (3.6%). The Gasoline Stations and Fuel Dealers subsector accounted for 13.5% of the workforce in Retail Trade in 2022. The annual wage increased $1,692 (6.6%). Gasoline service stations, truck stops, and gasoline stations with convenience stores are examples of establishments included in this subsector. Establishments in this subsector may also provide automotive repair services.

Building Material and Garden Equipment and Supplies Dealers (NAICS 444) annual average wage increased $2,949 (7.7%) from 2021 to 2022. This subsector added 205 workers (3.5%), jumping to 6,084 workers. Establishments include paint stores, lawn power equipment stores, garden center, lumber yards and home improvement stores. Establishments in this subsector remained strong in 2022 and expanded their workforce to keep up with the demand for those looking to build or remodel. Trends in this subsector also tend to track closely with those in the Construction sector, with building and specialty trade contractors relying on businesses in this subsector for materials and supplies.

Transportation and Warehousing

NAICS Sectors 48-49

The Transportation and Warehousing sector include industries that provide passenger and cargo transportation, warehousing and storage for goods, scenic and sightseeing transportation, and support activities for transportation. It is common for a business in this sector to operate a network of facilities, workers and equipment over a widespread area.

The Transportation and Warehousing sector splits into several subsectors:

• Each mode of transportation (Air, Rail, Water, Truck, Transit and Ground Passenger, and Pipeline)
• Warehousing and Storage
• Establishments providing Support Activities for Transportation
• Establishments providing Passenger Transportation for Scenic and Sightseeing purposes
• Postal Services and Courier Services

Transportation and Warehousing continued trending up in 2022, adding 413 workers (3.7%). This sector went from 11,087 workers in 2021 to 11,500 workers in 2022. Worker gains in the Warehousing and Storage subsector accounted for a majority of the growth in this sector. The average annual wage increased $2,476 (5.0%), jumping to an average annual pay of $51,943 in 2022. This sector added 33 establishments in 2022. Five subsectors in the Transportation and Warehousing sector had employment growth and eight had gains in earnings from 2021 to 2022.

The Warehousing and Storage (NAICS 493) subsector had the largest increase of workers in this sector with the addition of 311 workers (34.1%). The average annual wage increased $4,288 (9.5%), reaching an annual average of $49,388 in 2022. Establishments in this subsector include refrigerated warehousing, grain elevator storage, lumber storage terminals, bulk petroleum storage and general warehousing and storage. Gains in this subsector are related to businesses building their workforce in order to keep up with demand.

The Support Activities for Transportation (NAICS 488) subsector’s average number of workers in 2022 was 1,090, an increase of 152 workers (16.2%). The average annual pay rose $190 (0.4%) in 2022. Establishments provide services including air traffic control, motor vehicle towing and freight transportation arrangement. Gains in worker levels are due to the industry reclassification, moving some establishments from the Air Transportation subsector to the Support Activities for Transportation subsector.

The largest percentage annual wage growth among the Transportation and Warehouse subsectors was in the Air Transportation (NAICS 481) subsector. Annual pay rose $39,469 (84.6%), jumping to an average annual pay of $86,106 in 2022. Worker levels declined 167 (63.0%) from 2021 to 2021. This loss is related to the reclassification that took place in this subsector, moving some establishments to the Support Activities for Transportation subsector. This reclassification also played a major role in the over-the-year growth in annual pay, as some establishments with lower pay levels were moved to other industry categories. Industries in this subsector provide air transportation of passengers and/or cargo using an aircraft.

Couriers and Messengers (NAICS 492) annual employment in 2022 was 2,310, an increase of 3.8%. The average annual pay for this subsector increased $1,102 (2.5%) to $45,333 in 2022. Couriers and Messengers provide intercity and/or local delivery of parcels and documents without operating under a universal service obligation. The restriction to small parcels partly distinguishes these establishments from those in the transportation industries. Growth is related to establishments expanding due to increasing demands. As online shopping continues to rise, so does the need for additional workers in delivery services.

Utilities

NAICS Sector 22

The Utilities sector (NAICS 22) contains one subsector, also titled Utilities (NAICS 221), at the three-digit NAICS classification level. The Utilities sector lost five establishment and increased by 33 workers or 1.7% over the year. As of 2022, there were 1,993 workers in the Utilities sector. The annual pay for 2022 was $99,125, an increase of $5,661 or 6.1% compared to 2021. The Utilities sector experiences one of the highest annual pay statistics. In fact, this sector ranked second highest in annual wage rank in 2022, following only the Management of Companies and Enterprises sector (NAICS 55).

Establishments in this subsector provide electric power, natural gas, steam supply, water supply and sewage removal through a permanent infrastructure of lines, mains and pipes. Within this sector, the specific activities associated with the utilities services provided vary by utility. Electric power encompasses transmission and distribution, natural gas includes distribution, steam supply involves distribution, water supply offers treatment and distribution while sewage removal includes collection and disposal of waste. Waste management services are excluded from this sector since they do not use sewer systems or sewage treatment facilities, however they do collect, treat and dispose waste materials.

While this sector ranks high in annual wage, it ranks toward the bottom in establishment and employment ranks. The high wage rank is revealing of the critical services this sector provides. The demand for these services will likely boost employment in the upcoming years as South Dakota’s population increases. According to the Census Bureau, the population estimate for South Dakota from 2020 to 2022 showed an increase of 22,025 residents or 2.5%. As the number of residents continues to increase, it will have a direct relationship with the need for more workers and establishments that provide power, gas and water.

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