"HELP WANTED!" An analysis of labor supply dynamics in booming North Dakota

Abstract

North Dakota's oil boom has lead to an increase in the level of vacancies, which has gained high attention at the level of state government and businesses. The general thought is that the high level of vacancies could be explained by a shortage in labor supply. In contradiction to this view, this thesis revealed that vacancies are not only a result of the incapability of filling the vacancies posted for job creation, but are also especially relying on the attrition rate. The attrition rate is the result of the labor supply dynamics. This research project aims to understand the level and trends in the supply of labor of each sector in North Dakota and its effect on the vacancy level. It captures (1) the internal dynamics of a sector, (2) the external dynamics with the other sectors and (3) the total labor supply dynamics which allows for immigration and commuters. A combination of these different levels of aggregation creates a new perspective on the labor supply dynamics and its role on the level of vacancies in booming economies.