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Labor Market Information Center
Overview of the Current Labor Market
The analysis below is based on the most current labor market data available at any point in time.
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 44,055 in January 2024. 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
January 2024
Labor Force
This data is seasonally adjusted.
Preliminary estimates show South Dakota's unemployment rate remained unchanged at 2.1% in January 2024. The labor force decreased over the month by 100 workers (0.0%) to 481,600 workers. The level of unemployed remained steady at 9,900.
South Dakota's January 2024 labor force of 481,600 increased compared to the January 2023 level of 476,400. The level of employed increased by 4,600 (1.0%); the level of unemployed increased by 600 persons (6.5%). The unemployment rate increased 0.1% to 2.1%.
South Dakota Unemployment Rates by County
January 2024
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 decreased by 13,800 (2.9%) from December 2023 to January 2024. Worker level declines are common this time of year as many seasonal establishments (Construction, Retail Trade, and Leisure and Hospitality) reduce workforce when the winter holidays end and the weather turns colder.
Construction worker levels fell 9.6% over the month with a loss of 2,800 workers. Specialty Trade Contractors had a loss of 1,800 workers (10.4%). Specialty Trade Contractors perform a specific activity, such as site preparation, pouring concrete, plumbing, painting or doing electrical work. Heavy and Civil Engineering Construction and Construction of Buildings also had declines over the month, dropping 600 workers and 400 workers, respectively. Worker levels commonly fluctuate due to the seasonality of this sector, with weather having a big effect on worker levels.
Retail Trade declined 1,400 workers (2.6%), dropping to 53,000 workers in January 2024. The Sioux Falls Metropolitan Statistical Area (MSA) had a loss of 700, while Rapid City MSA worker levels fell 200 over the month. Warehouse clubs, sporting goods retailers, car dealerships, department stores, hardware stores, supermarkets, and gasoline stations are examples of establishments in this sector. Declines are expected this time of year as many establishments reduce their workforce after the holidays.
Leisure and Hospitality worker levels declined 3.5% with the loss of 1,700 workers in January 2024. Losses in Leisure and Hospitality were spread throughout the state. While the Sioux Falls MSA declined 500 over the month, the Rapid City MSA had a loss of 400. Hotels, restaurants, museums, zoos and ice cream parlors are just a few examples of establishments in this supersector. Worker levels in Leisure and Hospitality typically peak in August and dip to lower levels in January and February.
Transportation, Warehousing and Utilities worker levels fell 1,300 (7.7%). 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.
Government worker levels dropped 1,800 (2.2%) over the month. Local Government dropped 900 workers (1.7%). Local Government Educational Services had a loss of 700 workers (2.4%). State Government had a loss of 800 workers (4.3%) with State Government Educational Services dropping 800 (8.2%) over the month. Historically, worker levels in both State and Local Government Educational Services drop this time of year as many establishments in educational services reduce their workforce during winter break. Federal Government had a loss of 100 workers (0.9%) from December 2023 to January 2024.
Over-the-year comparisons
The total nonfarm wage and salaried worker level increased by 8,900 workers (2.0%) from January 2023 to January 2024. The top contributors to this growth were Construction; Leisure and Hospitality; Transportation, Warehousing and Utilities; and Government.
Construction had strong gains over the year, adding 2,400 workers (10.0%). Worker levels went from 24,100 in January 2023 to 26,500 in January 2024. Specialty Trade Contractors added 900 workers (6.2%) over the year. Heavy and Civil Engineering Construction continued trending up over the year, adding 800 workers (24.2%). Construction of Buildings also had strong gains, adding 700 workers (11.3%). Growth in construction is driven by increased demand for housing and new commercial projects that come with population growth. Apartment complexes, strip malls, home renovations, and road improvements are just a few examples of projections underway throughout the state.
Leisure and Hospitality increased 1,400 (3.1%), reaching 46,200 workers in January 2024. A majority of this growth took place outside of the Sioux Falls and Rapid City MSAs. While the Rapid City MSA added 400 workers, the Sioux Falls MSA had a loss of 600 workers. Worker levels in Leisure and Hospitality have trended up since April 2021. Growth in Leisure and Hospitality is related to employers increasing worker levels throughout the year to keep up with demand.
Transportation, Warehousing and Utilities worker levels rose 7.6% over the year with the addition of 1,100 workers. This growth took place in the Sioux Falls MSA (1,500 workers). Data from the Quarterly Census of Employment and Wages (QCEW) program indicates growth was spread throughout the warehousing and storage subsector.
Government added 2,100 workers (2.7%) over the year. Local Government added 1,300 workers (2.6%) with Local Government Educational Services adding 600 workers (2.2%). State Government also had over-the-year growth, adding 400 workers (2.3%). State Government Educational Services worker levels increased 300 (3.4%). Federal Government added 400 workers (3.6%), reaching 11,600 workers in January 2024. As the population rises, city programs and services also expand to meet the needs of the community.