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U.S. News August 17, 2020 3 mins read

Gov. Kristi Noem declines $400 unemployment aid, citing strong economy

U.S. News ı By Colby McCoy

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South Dakota Governor Kristi Noem has refused President Trump’s $400 federal jobless aid, citing a strong economy where 80% of residents have ‘got their jobs back.’

Noem’s decision to forgo Trump’s unemployment aid, which was laid out in an Aug. 8 executive order, has drawn criticism from Democrats and major newspapers alike.

In a recent statement, Noem declared, “My administration is very grateful for the additional flexibility that this effort would have provided, but South Dakota is in the fortunate position of not needing to accept it.”

Noem further added, “South Dakota’s economy, having never been shut down, has recovered nearly 80% of our job losses. South Dakota is the only state in the nation that didn’t have extended benefits kick in because our insured unemployment rate has been the lowest in the nation.”

Noem had decided to avoid shutting down South Dakota’s economy at the start of the pandemic. The decision has drawn interest from business owners across the country as they continue to navigate statewide lockdowns and a lack of customers.

Noem’s critics have not wasted any time pointing out that Noem is a fervent ally of President Trump, arguing that Noem’s refusal to shut down the state could lead to devastating consequences.

Multiple experts and economists have also pointed out that the numbers in South Dakota do not tell the whole story. While the state’s jobless rate continues to hover around 3.5%, the measurement itself accounts for individuals who receive benefits, not the total labor force.

It has been suggested that people have fallen through the cracks and have not been accounted for in the state’s statistics.

South Dakota's unemployment rate, as measured by the South Dakota Department of Labor & Regulation, is currently 7.2% -- quite a bit higher than the 3.5% touted by Noem. This figure takes into account people who "do not have jobs, have actively looked for work in the prior four weeks and are currently available for work." This figure also takes into account those who have been laid off and are waiting to go back to work.

Either way, Noem’s approach to COVID-19 has proven controversial for many, who feel that South Dakota’s avoidance of a lockdown risks lives, pointing to the fact that COVID-19 has become a political battle as much as a public health battle.

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Colby McCoy

Colby is a full-time freelance writer based in Seattle, Washington. He grew up in the Southeastern U.S. and loves books, politics, and spending time with his two dogs hiking.

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