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South Dakota e-Labor Bulletin
February 2024
South Dakota Nonfarm Worker Trends in 2023
Please note: Unless otherwise noted, the following highlights are based on a comparison of annual average data for 2022 and 2023.
South Dakota’s nonfarm worker levels had strong gains during 2023, adding 9,700 workers (2.1%). The average number of workers in 2023 was 462,300. Growth was spread throughout many of the industries in the state. The Sioux Falls Metropolitan Statistical Area (MSA) nonfarm worker level increased 4,500 workers (2.7%) for a 2023 annual average of 172,000 workers. The Rapid City MSA also had growth from 2022 to 2023, adding 1,600 workers (2.2%). While the metro area growth is not surprising but still good news, the even better news is the remaining growth of 3,600 in the balance of the state during 2023.
| South Dakota Statewide Nonfarm Wage & Salaried Workers by Industry (Not Seasonally Adjusted) |
||||
| Industry | 2022 Annual Average |
2023 Annual Average | Actual Change | Percent Change |
| Total Nonfarm | 452,600 | 462,300 | 9,700 | 2.1% |
| Total Private | 372,900 | 381,200 | 8,300 | 2.2% |
| Goods Producing | 72,400 | 74,900 | 2,500 | 3.5% |
| Service Providing | 380,200 | 387,300 | 7,100 | 1.9% |
| Mining, Logging & Construction | 27,300 | 29,600 | 2,300 | 8.4% |
| Manufacturing | 45,100 | 45,300 | 200 | 0.4% |
| Wholesale Trade | 21,900 | 22,300 | 400 | 1.8% |
| Retail Trade | 53,000 | 53,700 | 700 | 1.3% |
| Transportation, Warehousing & Utilities | 14,300 | 15,600 | 1,300 | 9.1% |
| Information | 5,200 | 5,100 | -100 | -1.9% |
| Financial Activities | 28,000 | 27,900 | -100 | -0.4% |
| Professional & Business Services | 36,800 | 37,300 | 500 | 1.4% |
| Private Education & Health Services | 75,300 | 76,700 | 1,400 | 1.9% |
| Leisure & Hospitality | 48,300 | 49,400 | 1,100 | 2.3% |
| Other Services (except Public Administration) | 17,700 | 18,300 | 600 | 3.4% |
| Government | 79,700 | 81,000 | 1,300 | 1.6% |
| Note: Numbers may not add due to rounding. | ||||
| Source: Labor Market Information Center, South Dakota Department of Labor and Regulation, in cooperation with U.S. Bureau of Labor Statistics | ||||
The total nonfarm worker levels mentioned above can be divided into two major components: Goods Producing and Service Providing industries. Goods Producing industries (Mining, Logging, and Construction sector and the Manufacturing sector) increased by 2,500 workers (3.5%) from 2022 to 2023. Service Providing industries (all other sectors listed in the table above) gained 7,100 workers (1.9%).
Mining, Logging and Construction increased 2,300 (8.4%) from 2022 to 2023. The Sioux Falls MSA added 1,000 workers, while the Rapid City MSA increased by 400. Statewide, Construction worker levels trended up in 2023, adding 2,300 workers (8.8%). This sector went from an average of 26,100 workers in 2022 to 28,400 average workers in 2023. Specialty Trade Contractors accounted for most of the growth in Construction with the addition of 1,200 workers (7.7%). Specialty Trade Contractors account for just under 60% of the workforce in Construction with a 2023 annual average of 16,700 workers. Specialty Trade Contractors perform a specific activity, such as site preparation, pouring concrete, plumbing, painting, or doing electrical work.
Construction of Building and Heavy and Civil Engineering Construction also had gains, adding 600 workers (9.4%) and 400 workers (9.5%), respectively. According to the City of Sioux Falls, the construction valuation totaled $1.1 billion in 2023 (second largest building year). While this is below the 2022 construction value of 1.9 billion, it was still a solid year considering rising costs. The Construction sector has remained strong as cities continue to expand their footprint to keep up with population growth. Mining and Logging remained unchanged from 2022 to 2023 with 1,200 workers. Over the last ten years, Mining and Logging has been very stable with only modest changes from year to year.
Manufacturing worker levels trended up for the third consecutive year. Manufacturing gained 200 workers (0.4%) in 2023. Durable Goods Manufacturing increased 100 workers (0.4%) from 2022 to 2023. With an annual average of 28,400 workers in 2023, Durable Goods accounts for just over 60% of the workforce in Manufacturing. Durable Goods produced in South Dakota, such as trailers, furniture, and electronic equipment, are not immediately consumed and can be kept for a longer time. Non-Durable Goods Manufacturing added 100 workers (0.6%). Non-durable goods are immediately consumed in one use or have a lifespan of less than three years. Examples of non-durable goods produced or processed in South Dakota include food and beverage products, paper products, and fuel. Demand is the driving force behind growth in Manufacturing. As demand increases, establishments need to build their workforce to increase their output.
Wholesale Trade worker levels increased 400 (1.8%), reaching a 2023 annual average of 22,300 workers. The Wholesale Trade sector consists of establishments engaged in wholesaling merchandise and rendering services incidental to merchandise. The wholesaling process is an intermediate step in product distribution. Wholesalers sell merchandise received from manufacturers to other establishments and normally operate from a warehouse or office. The merchandise in this sector consists of the outputs of agriculture, mining, and manufacturing. Gains in Wholesale Trade are linked to growth in Manufacturing and Retail Trade. As supply and demand grow, additional workers are needed to coordinate the sale of product.
Retail Trade added 700 workers (1.3%), jumping to an annual average of 53,700 workers in 2023. The Sioux Falls MSA added 300 workers, while the Rapid City MSA added 200. Establishments in Retail Trade employ many part-time workers, many juggling work schedules around school or another job. Clothing boutiques, home furnishing stores, department stores, hardware stores, supermarkets, gasoline stations, antique shops, and souvenir stores are examples of establishments in this sector. Establishments in Retail Trade have expanded their services by giving customers more flexibility with ordering and fulfillment options. From shopping in-store to one-hour delivery, there is an option for everyone.
Transportation, Warehousing and Utilities had significant growth from 2022 to 2023, adding 1,300 workers (9.1%). This growth took place in the Sioux Falls MSA (1,400 workers). Examples of establishments in this industry include tow truck services, natural gas distribution, taxicab services, local and long-distance trucking, scheduled air passenger transportation, and general warehousing. Through the Quarterly Census of Employment and Wages (QCEW) program which provides more detailed data than the monthly establishment survey, we've noticed an uptick of workers in the warehousing and storage subsector from the first quarter of 2022 to the third quarter of 2023.
Information declined from 2022 to 2023 with a loss of 100 workers (1.9%). The Information sector is comprised of establishments engaged in publishing, internet publishing, motion picture and sound recording, broadcasting, movie theaters, internet service providers, data processing, and all other information services. Advancements in technology have played a role in this modest loss. Technology has simplified the process of sharing information and made it possible to get information instantly. As more people use technology to share information, traditional options such as printed newspapers and paper invitations have declined.
Financial Activities had a loss of 100 workers (0.4%), dropping to an annual average of 27,900 in 2023. This loss took place in the Sioux Falls MSA (400 workers). Over half of the workers in the Financial Activities supersector are in the Sioux Falls MSA (14,800 workers). The Financial Activities supersector consists of the Finance and Insurance sector and the Real Estate and Rental and Leasing sector, with the losses concentrated in Finance and Insurance. Credit card banks, saving institutions, portfolio fund managing, and insurance claims adjusting are examples of establishments. From filling out an application to signing important documents, consumers have many options to complete transactions at their leisure. Advances in technology and increased automation have simplified many services, resulting in time-saving processes that have kept worker level changes small.
Professional and Business Services worker levels jumped 500 (1.4%) over the year, reaching an average of 37,300 workers in 2023. The Rapid City MSA added 300 workers, while the Sioux Falls MSA remained unchanged with 17,300 workers. This supersector is broken down into the following sectors: Professional, Scientific, and Technical Services; Management of Companies and Enterprises; and Administrative and Support and Waste Management and Remediation Services. This industry provides a wide range of services usually obtained by other businesses, sometimes provided to households. Data from the QCEW program indicate growth was spread throughout the Professional, Scientific, and Technical Services sector. Legal services, tax preparation services, engineering services, graphic design, computer systems design services, environmental consulting services, marketing, and veterinary services are examples of establishments included in the Professional, Scientific, and Technical Services sector.
Private Education and Health Services increased by 1,400 workers (1.9%). This growth took place primarily in the Sioux Falls MSA (900 workers). Statewide, Health Care and Social Assistance accounted for most of the growth in Private Education and Health Services, adding 1,100 workers (1.6%). Establishments in Health Care and Social Assistance include dentist offices, chiropractors, childcare centers, assisted living facilities, and vocational rehabilitation agencies. Hospitals increased by 300 workers (1.1%), reaching 28,100 workers. Health Care and Social Assistance has been on an upward trend for 20 years. This trend has continued for several reasons, including population growth, advances in technology and scientific research, and increases in specialized medical procedures.
The U.S. Census Bureau estimated South Dakota’s population at 919,318 in July 2023 compared to 909,869 in July 2022. Private Educational Services added 300 workers (4.2%), climbing to an annual average of 7,500 workers in 2023. This number includes private educational services; public educational services are included in government worker levels. The Educational Services sector is made up of establishments that provide instruction and training in a wide variety of subjects.
Leisure and Hospitality worker levels rose 2.3%, adding 1,100 workers during 2023. Establishments included in this supersector include performing arts, fitness centers, museums, arcades, amusement parks, hotels, and restaurants. Tourism plays a huge role in the growth of this supersector, and South Dakota offers many different events throughout the year to draw visitors to the state. According to the South Dakota Department of Tourism’s Tourism Economics, 14.7 million visitors traveled to South Dakota in 2023 compared to 14.4 million visitors in 2022. Growth is related to establishments building their workforce to keep up with a rise in visitors.
Other Services (except Public Administration) increased by 3.4% with the addition of 600 workers over the year. This sector went from an average of 17,700 workers in 2022 to an average of 18,300 workers in 2023. The Sioux Falls and Rapid City MSAs each added 200 workers from 2022 to 2023. As the population in South Dakota continues to grow, so does the demand for workers who provide the wide variety of services included in this sector. Examples of establishments in this sector include hair salons, nail salons, car washes, wedding planning services, civic and social organizations, general automotive repair shops, and pet boarding services.
Government added 1,300 workers (1.6%), reaching a 2023 annual average of 81,000 workers. Local Government increased 600 (1.2%) over the year. Tribal, city, and county governments, along with public and tribal school districts, are included in Local Government. Local Government Educational Services added 300 (1.1%). Growth in Local Government can be attributed to population increases, as city programs and services expand to meet the needs of the communities. State Government worker levels rose 2.3%, adding 400 in 2023. State Government Educational Services increased by 200 (2.3%). Federal Government had a gain of 300 workers (2.7%), rising to an annual average of 11,500 in 2023.