Employment, Wages, and Prices Labor markets remain tight. With the unemployment rate just over 2 percent, not all openings can be filled. In Montana, high turnover in low-skilled workers is reported. To draw applicants, a fast food restaurant is offering free meals in exchange for job applications. One sign of labor market softening was reported in the June St. Cloud State University survey, where fewer surveyed businesses expect to add workers in the next six months, almost 40 percent compared with 58 percent in March.
Employers continue to increase wages.
According to an informal survey of manufacturers in the Dakotas, Minnesota, and Wisconsin, about 50 percent of respondents have increased wages about 2 percent to 5 percent to retain and attract workers. Teachers in South Dakota on average received a 7 percent hike in pay compared with a year ago. Some major Minnesota law firms are paying new associates salaries 14 percent to 35 percent higher than last year. Some price increases are noted, especially in housing and natural gas. According to an informal survey of manufacturers in the Dakotas, Minnesota, and Wisconsin, about 35 percent of respondents expect to increase product prices about 2 percent to 5 percent.