Economist Ernie Goss react to wage increase in South Dakota

OMAHA, N.E.(KELO)- South Dakota workers are enjoying big wage gains…but are they better off?

The State Labor Department says the average wage increased by 5 1/2% in 2022.

But, when you offset those gains by inflation, employees are actually losing buying power.

Creighton University Economist Ernie Goss says there are some groups that are gaining more than others.

Employers are doing all they can to hold on to the workers they have.

Normally, when business falls off, companies lay off employees.

Goss says that isn’t what they’re doing now.

Goss says that is hurting the economy.

With unemployment at historic lows, companies are holding on to employees when they would normally have lay-offs.

Goss calls that labor hoarding and says it’s causing huge problems.

Goss says the jobs added to the economy should generate much higher profits, but it hasn’t.