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Labor Market Information Center

Overview of the Labor Market

The overview below is based on South Dakota data for February 2026, the most recent data available.

Labor Supply

The number of South Dakotans who would be available to staff a new or expanding business, or South Dakota's labor supply, was estimated at 48,020 in February 2026. Included in this labor supply are those who currently hold jobs (and would like to change) and those who, for a variety of reasons, do not have jobs.

South Dakota Labor Supply
February 2026

Labor Force

This data is seasonally adjusted.

Preliminary estimates show South Dakota's unemployment rate increased 0.1 to 2.3% in February 2026. The labor force decreased over the month by 700 workers (0.1%) to 492,800 workers and the level of unemployed increased by 100 (0.9%) to 11,100 persons.

South Dakota's February 2026 labor force of 492,800 increased compared to the February 2025 level of 489,900. The level of employed increased by 1,500 persons; the number of unemployed increased by 1,400 persons (14.4%). The unemployment rate increased 0.3% to 2.3%.

South Dakota Unemployment Rates by County

February 2026

This data is not seasonally adjusted.

Notes about labor force data

The unemployment rate represents the number of unemployed as a percent of the labor force. People are classified as unemployed if they do not have jobs, have actively looked for work in the prior four weeks and are currently available for work. People who were not working and were waiting to be recalled to jobs from which they were temporarily laid off are also included as unemployed.

Labor force estimates for South Dakota are produced by the Labor Market Information Center in cooperation with the U.S. Bureau of Labor Statistics. The concepts and definitions underlying the labor force data come from the Current Population Survey (CPS), the household survey which is the official measure of the labor force for the nation. The statewide estimate of the number of nonfarm jobs is a component of the model used to produce the labor force estimates. Other data used in this model include the number of continued unemployment insurance claims and survey data from the Current Population Survey (CPS) which is specific to the state.

Although state specific data is used in the production of the labor force estimates for South Dakota, the state monthly model estimates are controlled in "real time" to sum to national monthly labor force estimates from the CPS. Therefore, variation in the estimates of the employed and unemployed are somewhat controlled by what is happening nationally.

South Dakota Nonfarm Wage & Salaried Workers by Industry

This data is not seasonally adjusted.

Over-the-month comparisons

Based on a monthly survey of South Dakota establishments, preliminary estimates show the total nonfarm wage and salaried worker level increased by 2,100 (0.5%) from January 2026 to February 2026.

Government added 1,700 workers (2.1%) over the month. State Government added 1,000 workers (5.6%) with State Government Educational Services gaining 1,000 (11.2%). Local Government also showed growth with the addition of 600 workers (1.2%). Local Government Educational Services increased 500 workers (1.8%). Historically, worker levels in both State and Local Government Educational Services increase in February after taking a quick dip due to winter holiday breaks. Federal Government showed a gain of 100 (0.9%), resulting in 10,700 workers in February 2026.

Professional and Business Services increased 600 workers (1.7%) over the month. This sector went from 35,500 workers in January 2026 to 36,100 workers in February 2026. Establishments in this sector offer a wide range of services frequently used by other businesses and occasionally households. Growth was scattered throughout many of the establishments in this sector. Temporary staffing services, payroll processing services, tax preparation services, engineering services, trash collection services, and security guard services are examples of establishments in this sector.

Transportation, Warehousing, and Utilities worker levels fell 500 (3.1%). This sector includes industries that provide general freight trucking, courier services, warehousing and storage for goods, and support activities related to modes of transportation. Declines in Transportation, Warehousing, and Utilities are common this time of year as many establishments reduce workforce after building it up for the holidays.

Financial Activities decreased 300 workers (1.1%), falling to 26,600 workers. Worker levels in Financial Activities tend to fluctuate, driven by advancements in technology, demand for financial services, and evolving regulations. Credit card banks, saving institutions, portfolio fund managing, and insurance claims adjusting are examples of establishments.

Over-the-year comparisons

The total nonfarm wage and salaried worker level increased by 2000 workers (0.4%) from February 2025 to February 2026. This growth was the net result of a combination of increases and decreases across industries. At the supersector level, the primary contributors to this growth were Leisure and Hospitality; Private Education and Health Services; and Other Services (except Public Administration).

Leisure and Hospitality worker levels increased 3,800 workers, representing an 8.1% increase over the year. Most of this growth took place outside of the Sioux Falls and Rapid City metro areas. While the Rapid City area added 900 workers, the Sioux Falls metro area recorded an increase of 100 workers. Growth in Leisure and Hospitality is tied to employers expanding their workforce throughout the year to meet ongoing demand.

Private Education and Health Services increased by 1,100 workers (1.4%), with most of the growth taking place in the Sioux Falls metro area(900 workers). Statewide, Health Care and Social Assistance added 1,100 workers (1.5%). Hospitals worker levels went up 1.1% with the addition of 300 workers. Private Educational Services remained at 8,300 workers over the year. These gains stem from several factors, including population growth and an aging population that increase the demand for additional staff.

Other Services (except Public Administration) added 500 workers (2.7%) over the year. As population continues to increase, so does the demand for workers who provide a wide variety of services in this sector. Examples of establishments in this sector include beauty salons, car washes, wedding planning services, civic and social organizations, general automotive repair shops, and pet boarding services.