Numbers of North Dakota Business Establishments and Business Employees Grew in 2005

The number of North Dakota business establishments with paid employees grew 4.6 percent from 2000 through 2005, according to "County Business Patterns," which focuses on the number of single locations where business is conducted. The 21,061 business establishments in the state employed 270,479 people in mid-March 2005, up 6 percent from 255,178 in mid-March 2000.

This month's "Population Bulletin," a monthly publication from the North Dakota State Data Center at North Dakota State University, focuses on the number of North Dakota businesses, employees and annual payroll as released in "County Business Patterns," a U.S. Census Bureau publication issued annually.

Total payroll for North Dakota businesses was $7.8 billion in 2005, up 28.4 percent from $6.1 billion in 2000. Annual payroll per employee averaged $28,761 in 2005, up 21.2 percent from $23,737 six years earlier. Inflation rose 13.4 percent during this time. Nationally, the annual payroll per employee averaged $38,539 in 2005, up 13.3 percent from $34,011 in 2000.

"This is very good news for North Dakota because the percentage growth in payroll per employee in the state is outpacing the nation," says Richard Rathge, State Data Center director. "In addition, the growth in annual payroll is several points above inflation, indicating that the paychecks of workers, on average, are growing in buying power."

Various service industries, along with retail trade, employ a large proportion of North Dakota's business work force. Health care and social assistance employed 18.6 percent in 2005. Accommodation and food services accounted for another 10.6 percent. Retail trade employed 16.1 percent of the state's business work force. Business employment nationwide followed similar trends, with health care/social assistance and retail trade industries representing the largest business employers in 2005 (13.8 percent and 13.2 percent, respectively).

Nationally, the number of business establishments grew 6.1 percent from 2000 through 2005. Nevada reported the largest percentage gain in businesses (21.6 percent), followed by Utah (18.4 percent), Florida (17.8 percent) and Idaho (15.8 percent). Two states reported losses (Massachusetts and West Virginia). Approximately half of all North Dakota counties experienced growth in the number of business establishments from 2000 through 2005 (29 of 53 counties).

Data from "County Business Patterns" exclude those self-employed, railroad workers and most government employees. For more information, visit http://www.census.gov/epcd/cbp/view/cbpview.html.

NDSU Agriculture Communication