This week in 2017, Luis Fonsi and Daddy Yankee's "Despacito" officially became the most-watched video in YouTube history, proving that sometimes you don't need to understand what's happening to know it's amazing. The reggaeton-pop fusion spent 16 weeks at #1, becoming so inescapable that even your grandmother was probably humming along while gardening. Even if your Spanish vocabulary consisted entirely of "¿donde está el baño?" and "más cerveza," no doubt you were confidently belting out what you thought were the lyrics. Probably you were just repeating any English word that got close.
"Despacito,” which in English roughly means “let’s do something naughty” was so hot so fast that even Justin Bieber wanted to collaborate, beating out the likes of Ed Sheeran for the chance. The song would go on to top the charts in 47 different countries and be banned in another (Malaysia) for being too sexy. That’s like banning Patrick Swayze or Kevin Bacon if you ask me.
“Despacito” proved that the best surprises come from completely unexpected directions, much like finding out your uncle who collects vintage lawn mowers also owns twenty Bitcoin. The song transcended every conceivable barrier, making grown adults attempt the salsa in grocery stores and suburban dads move away from Snow’s “Informer” as the song they most confuse with reggae.
This month's economic indicators are a lot like that, staging their own viral sensation, complete with plot twists made for a telenovela. Just as quickly as we thought there would be a downturn in demand, gross sales exploded this month to $1.063 billion, which is an all-time record. That’s a mind-melting 36.59% increase from a year ago. Perhaps people were stocking up, anticipating a tariff-related shock later, but after months of sales hovering around $700 million, Rapid City’s economy pulled off something it’s never done in its history. Is it a dead-cat bounce or a new TikTok dance sensation? Honestly, we’re just not sure.
Employment continues its steady climb with non-farm jobs reaching 75,400 (up 2.59%), though average weekly wages dipped slightly to $1,006. It's like having a band where the drummer is absolutely killing it, but the lead singer keeps forgetting some of the words. Education and health services are also crushing it with 7.03% growth, proving that while robots might steal our jobs eventually, they apparently haven't figured out how to perform surgery or keep kindergarteners from eating glue.
The rest of the economy is a bit of a mixed bag. Tourism continues to be a reliable industry, with airport passengers reaching 60,513 (up 8.0%) and hotel occupancy holding steady at 59%. Construction and real estate are also consistent but not scorching. For example, building permits climbed to 223, though housing permits dropped from 30 to 22, suggesting single-family housing continues to be a need. That could explain why the days-on-market fell to just 36 days. And active listings, although up from last month (246), are still significantly below pre-pandemic numbers.
The ongoing tariff saga has apparently entered its "director's cut" phase. While the daily whiplash of news is certainly dramatic, things are more nuanced now and with fewer special effects. Meanwhile, inflation dropped to 2.4% regionally, unemployment held at 1.8%, and labor force participation climbed to 66.2%, suggesting, again like last month, the local economy isn’t ready to succumb to the national narrative of impending disaster.
Rapid City's economy continues—despacito.
Stay safe and God-speed,
Tom
