Monday, October 20, 2014

This is What the Oil Boom is Doing to Wages in North Dakota

The oil boom in North Dakota is the result of the discovery of the Bakken formation in the state that followed the discovery of Parshall Oil Field in 2006. New technology, including methods of extracting oil from shale and fracking have contributed to the boom.

The boom in means that Walmart must compete aggressively for employees, in the region.

The below pic shows what WalMart has to pay for various jobs in Williston, North Dakota.

Note well: All these wages are far above the current minimum wage. When market conditions warrant wages above the minimum wage, there is nothing that businesses, including large corporations like WalMart, can do about it other than pay the prevailing market wages, if the want to employ the workers. No unions needed, no government regulations required.

North Dakota oil production:

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