Income & Wages

Income Differences Sharpest in Metro Area

Median household income differences are greatest in the Rapid City metropolitan area, compared to more rural parts of the Black Hills. As depicted in this interactive map, data from the 2010 U.S. Census reveals that the region's highest income tracts are on the south and western sides of the Rapid City metro area. The lowest income areas are to the north and east of downtown and on the Pine Ridge Indian Reservation. This data aligns with national studies of income inequality that show that income differences are highest in urban areas. 

Personal Income and Government Benefits in the Black Hills

Across the United States, Americans derived 17.6 percent of their personal income from government benefits including Social Security, veteran’s benefits, food stamps, unemployment insurance, Medicare and more. In the Black Hills, as well as the rest of the country, this reliance on the government for personal income has grown over the last three decades. Using data provided by the U.S. Bureau of Economic Analysis, the New York Times provides an interactive, county-by-county map to show this change over time.

For Black Hills counties, the percent of personal income derived from government benefits (not including agricultural subsidies, student loans or other transfers), was:

Butte – 19.51%  

Custer – 20.25%

Fall River – 26.74%

Lawrence – 18.41%

Meade – 15.11%

Pennington – 17.02%

Shannon – 42.98%

Meade County Leads Region in Per Capita Income

Personal incomes in the Black Hills region are not as high as for the state or the nation. Among the seven counties, the average per capita income was $32,103 in 2008 (the most recent year for which statistics are available). This was well below the national and state averages of $40,166 and $38,644 respectively.

Within the region, there are significant differences. Meade County led the region with per capita income of $37,867, while per capita incomes in Shannon County were among the lowest in the country at $17,603. Incomes in the two counties that comprise the Rapid City metropolitan area averaged $37,744 per capita. In the more rural counties, incomes averaged $32,907 (excluding Shannon County) or $29,846 (including Shannon County). 

Over a ten-year period, however, incomes in the rural counties have been increasing faster (averaging 5.3 percent without Shannon County and 5.1 percent with Shannon County) than in the metropolitan area, which has an average annual growth rate of 5.0 percent.

For access to the 2008 data posted by the Bureau of Economic Analysis, U.S. Department of Commerce click here: http://www.bea.gov/regional/bearfacts/action.cfm.

Chart - Average Weekly Wages By County in South Dakota, Second Quarter 2010

Source: U.S. Bureau of Labor Statistics, updated February 4, 2011. (http://www.bls.gov/ro5/qcewsd.htm)

Below is a chart showing the average weekly wages in the Black Hills region in 2009, as recorded by the Bureau of Labor Statistics. Click on the tabs to access a time series of a specific county.

Wages include bonuses, stock options, profit distributions, the cash value of meals and lodging, tips and other gratuities, and, in some states, employer contributions to certain deferred compensation plans such as 401(k) plans.

Below is a chart showing an alternate measure of income, the average annual pay in the Black Hills region in 2009. Click on the tabs to see a time series of each county.