North Dakota Gov. Doug Burgum has been praised by Donald Trump as one of the best governors in the country, sparking speculation that he could be a potential running mate for the former president. Despite his low-key personality and financial resources, his record as governor will undergo scrutiny, particularly on the economic front, as North Dakota’s job numbers have not fully recovered from the COVID-19 pandemic compared to national figures. The state’s economic growth has also lagged behind the national economy due to its reliance on energy and agriculture, two industries prone to boom-and-bust cycles.
While Trump has not revealed his VP prospects, Burgum was recently seen with the former president at Mar-a-Lago, along with other potential rivals for the spot, such as Sens. Tim Scott and J.D. Vance. Republicans have been critical of President Joe Biden’s handling of inflation, which has impacted his approval rating on the economy. Choosing a running mate with potential vulnerabilities on the economy, like Burgum, could complicate their messaging, making it harder to criticize the current administration’s economic policies.
A spokesman for Burgum defended the state’s recent economic performance and highlighted the governor’s efforts to diversify the economy. However, the number of jobs in North Dakota has not fully recovered to pre-pandemic levels, with only a slight decline in total employment since February 2020. Additionally, the state saw a slower compound annual growth rate compared to the national average, potentially due to the decline in energy exploration activities in the region.
The boom in energy exploration in North Dakota’s Bakken field led to significant economic growth in the late 2000s, but production has since stagnated, resulting in decreased attractiveness to workers and residents. This has led to a net out-migration of residents from the state, further affecting economic growth potential. Despite these challenges, North Dakota continues to have the lowest unemployment rate in the nation and higher labor force participation rates compared to the national average, suggesting some positive economic indicators for the state.
While North Dakota’s economy faces challenges, there are also bright spots, such as a strong labor force participation rate, high economic growth rates, and record-high population numbers. Burgum’s efforts to diversify the economy by attracting data centers, drone companies, tourism businesses, and new factories demonstrate a commitment to sustaining and strengthening the state’s economic landscape. Overall, the governor remains optimistic about North Dakota’s economic prospects, citing ongoing growth and diversification efforts as key drivers of the state’s economic resilience.
