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Labor Market Information Center

Overview of the Labor Market

The overview below is based on South Dakota data for May 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 42,775 in May 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
May 2026

Labor Force

This data is seasonally adjusted.

Preliminary estimates show South Dakota's unemployment rate decreased to 2.1% in May 2026. The labor force decreased over the month by 800 workers (0.2%) to 489,900, and the level of unemployed decreased by 400 (3.7%) to 10,300.

South Dakota's May 2026 labor force of 489,900 decreased 1,300 (0.3%) compared to the May 2025 level of 491,200. The level of employed decreased by 1,800 persons (0.4%); the number of unemployed increased by 500 persons (5.1%). The unemployment rate increased 0.1% to 2.1%.

South Dakota Unemployment Rates by County

May 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 9,400 (2.0%) from April 2026 to May 2026. Gains over the month were dispersed over several industries with Leisure and Hospitality, Construction, Government, and Retail Trade leading the way.

Leisure and Hospitality worker levels rose 8.2% over the month with the addition of 4,200 workers. The Rapid City Metropolitan Statistical Area (MSA) added 1,500 workers over the month, while the Sioux Falls MSA added 1,200. Museums, campgrounds, zoos, casinos, fitness centers, hotels, and restaurants are examples of establishments included in this supersector. Establishments often boost their staffing levels in May to prepare for an expected rise in visitors during the summer months.

Construction gained 2,500 workers (8.7%), reaching 31,300 in May 2026. Specialty Trade Contractors increased 1,500 workers (8.7%). Specialty Trade Contractors perform a specific activity, such as site preparation, pouring concrete, plumbing, painting or doing electrical work. Heavy and Civil Engineering Construction also showed gains, adding 600 workers (12.2%) in May 2026. Construction of Buildings had an increase of 400 workers (6.0%). This time of year usually brings a rise in staffing as establishments kick off new projects or restart work paused during winter conditions.

Government added 1,100 workers (1.3%) over the month. Local Government accounted for all the growth, adding 1,300 workers. Gains in Local Government agencies are typical this time of year as they hire summer workers for ground maintenance, road work, lifeguarding, etc. Federal Government added 100 workers (0.9%). State Government had a loss of 300 workers, dropping to 18,700 workers in May 2026.

Retail Trade added 1,000 workers (1.9%) in May 2026. Seasonal establishments increasing their workforce to prepare for the inflow of consumers contributed to this gain. Souvenir stores, sporting goods retailers, garden centers, hardware stores, supermarkets, and gasoline stations are examples of establishments in this sector.

Over-the-year comparisons

The total nonfarm wage and salaried worker level increased by 100 from May 2025 to May 2026. The top contributors to this growth were Leisure and Hospitality, Private Education and Health Services, and Construction.

Leisure and Hospitality increased by 2,300 workers (4.3%), jumping to 55,200 in May 2026. This growth took place primarily outside the Sioux Falls and Rapid City MSAs. The Rapid City MSA added 200 workers (1.7%), and the Sioux Falls MSA added 300 workers (1.6%). Over-the-year growth is fueled by increased travel, dining out, and entertainment events throughout the state.

Private Education and Health Services worker levels remained strong over the year, adding 1,300 workers (1.6%). Health Care and Social Assistance accounted for the majority of this growth. Health Care and Social Assistance added 1,200 workers (1.7%), reaching 73,700 workers. Hospitals had an increase of 400 workers (1.4%) over the year. The demand for workers in Health Care and Social Assistance has remained strong over the year. Growth is related to several factors such as population growth and an aging population. Private Educational Services increased 100 workers (1.2%).

Construction continued an upward climb, adding 700 workers (2.3%) over the year. Specialty Trade Contractors added 600 workers (3.3%) over the year, and Heavy and Civil Engineering Construction added 300 workers (5.8%). Construction of Buildings showed a decline of 200 workers (2.7%). Growth in construction is driven by increased demand for housing, infrastructure updates, and new commercial projects that come with population growth.