Marcia Hultman

Cabinet Secretary

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South Dakota e-Labor Bulletin

February 2025

Nonfarm employment trends in 2024

Unless otherwise noted, the following highlights are based on a comparison of annual average data for 2023 and 2024.

South Dakota added 5,900 nonfarm wage and salaried workers (1.3%) in 2024. The average number of workers in 2024 was 467,800. Growth was spread throughout many of the industries in the state. The Sioux Falls Metropolitan Statistical Area (MSA) nonfarm worker level increased by 3,500 workers (2.0%) for a 2024 annual average of 179,400 workers. The Rapid City MSA also had growth from 2023 to 2024, adding 1,300 workers (1.8%).

South Dakota Statewide
Nonfarm Wage & Salaried Workers by Industry (Not Seasonally Adjusted)
Industry 2023
Annual
Average		 2024
Annual
Average		 Actual
Change		 Percent
Change
Total Nonfarm 461,900 467,800 5,900 1.3%
  Total Private 380,900 385,700 4,800 1.3%
  Goods Producing 74,700 75,600 900 1.2%
  Service Providing 387,100 392,200 5,100 1.3%
Mining, Logging & Construction 29,400 30,500 1,100 3.7%
Manufacturing 45,300 45,100 -200 -0.4%
Wholesale Trade 22,300 22,600 300 1.3%
Retail Trade 53,800 54,100 300 0.6%
Transportation, Warehousing & Utilities 15,600 15,900 300 1.9%
Information 5,200 5,200 0 0.0%
Financial Activities 27,800 27,500 -300 -1.1%
Professional & Business Services 37,300 37,300 0 0.0%
Private Education & Health Services 76,800 78,900 2,100 2.7%
Leisure & Hospitality 49,400 50,300 900 1.8%
Other Services (except Public Administration) 18,100 18,500 400 2.2%
Government 81,000 82,100 1,100 1.4%

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 900 workers (1.2%) from 2023 to 2024. Service Providing industries (all other sectors listed in the table above) gained 5,100 workers (1.3%).

Mining, Logging and Construction added 1,100 workers (3.7%) from 2023 to 2024. This sector went from an average of 29,400 workers in 2023 to 30,500 average workers in 2024. Construction accounted for this growth, adding 1,000 workers (3.5%).

Specialty Trade Contractors had the largest growth within Construction, adding 700 workers (4.2%). Specialty Trade Contractors account for just under 60% of the workforce in Construction with a 2024 annual average of 17,400 workers. Specialty Trade Contractors perform a specific activity, such as site preparation, pouring concrete, plumbing, painting, or doing electrical work. Construction of Buildings and Heavy and Civil Engineering Construction also had growth on a smaller scale, adding 200 workers (2.9%) and 100 workers (2.2%), respectively. The demand for construction has continued to thrive in 2024 despite rising costs. New residential buildings, commercial projects, renovations, and updates to infrastructures are just a few examples of the projects seen throughout the state.

Many establishments within construction and property development (ranging from small to larger companies) rely on Specialty Trade Contractors for their expertise and efficiency in handling certain aspects of projects. A company with a contract for a new build may outsource various pieces or stages of the construction with several Specialty Trade Contractors. For instance, one pours the concrete, another does the electrical work, another plumbing work, one works on heating and air-conditioning, another installs and seams the drywall, and another does the painting.

Mining and Logging gained 100 workers (8.3%) from 2023 to 2024. Over the last 10 years, Mining and Logging has been very stable with only modest changes from year to year.

Manufacturing worker levels declined slightly in 2024 after trending up for three consecutive years. Manufacturing had a loss of 200 workers (0.4%) in 2024. Non-Durable Goods Manufacturing added 100 workers (0.6%), reaching an annual average of 17,100 workers in 2024. 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 animal slaughtering.

Durable Goods had a loss of 300 workers (1.1%). 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. This loss is a result of small drops spread throughout many establishments over the year.

Wholesale Trade worker levels trended up for the fourth consecutive year with the addition of 300 workers (1.3%). The Wholesale Trade sector includes establishments engaged in wholesaling merchandise and providing services related to the sale of goods. Wholesalers sell merchandise in bulk from manufacturers to other establishments. The merchandise in this sector consists of the outputs of agriculture, mining, and manufacturing. When demand increases, the need for additional workers to coordinate the sale of product also rises.

Retail Trade saw a growth of 300 workers (0.6%) from 2023 to 2024. This sector went from an annual average of 53,800 workers in 2023 to an annual average of 54,100 workers in 2024. 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.

Population growth and increases in consumer spending play a huge role in the Retail Trade workforce. The U.S. Census Bureau estimated South Dakota’s population at 924,669 in July 2024 compared to 919,318 in July 2023. Increased consumer spending influences the demand for retail goods, leading to more jobs in this sector. As the population grows, establishments also expand their footprint to meet the needs of the community. Many establishments have pumped up their ‘influencing’ power, using social commerce through formats like videos modeling apparel or demonstrating products to increase consumer spending. Many establishments have also had to increase their workforce to combat theft.

Transportation, Warehousing and Utilities grew by 300 (1.9%), reaching an annual average of 15,900 workers in 2024. Examples of establishments in this industry include tow truck services, natural gas distribution, electric power distribution, local and long-distance trucking, scheduled air passenger transportation, and general warehousing. While Transportation and Warehousing are reliant on demand, Utilities is influenced by population growth. Many establishments rely on transportation and warehousing companies to move products from the manufacturer to the consumer. Growth is related to establishments expanding their workforce to keep up with demand.

The Information sector has remained steady with 5,200 workers for the last three consecutive years. 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. Technology advancements have simplified processes, helping some establishments expand services while keeping the worker levels stable.

Financial Activities declined by 300 (1.1%), dropping to an annual average of 27,500 workers in 2024. The Financial Activities supersector consists of the Finance and Insurance sector and the Real Estate and Rental and Leasing sector. Credit card banks, saving institutions, portfolio fund managing, and insurance claims adjusting are examples of establishments. Establishments in Financial Activities have continued to evolve with advances in technology and increased automation. As consumers shifted from in-person to using digital tools to complete transactions, foot traffic at physical locations declined, reducing the need for traditional roles.

Professional and Business Services worker levels stayed steady from 2023 to 2024, holding at 37,300. 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 typically sourced by other businesses, occasionally provided to households. Computer hardware consulting services, payroll processing services, landscaping services, tax preparation services, corporate offices primarily engaged in overseeing a company, and security guard services are examples of establishments in this supersector.  

Technology has changed the way this supersector provides services with the automation of routine tasks allowing employees to focus on other tasks. From scheduling to virtual assistants helping with customer service inquiries, automation has enhanced productivity, making establishments more efficient.

Private Education and Health Services added the largest number of workers from 2023 to 2024 with the addition of 2,100 workers (2.7%). Health Care and Social Assistance contributed to his growth, adding 2,100 workers (3.0%). Establishments in Health Care and Social Assistance include dentist offices, chiropractors, childcare centers, assisted living facilities, and vocational rehabilitation agencies. Hospitals increased by 700 workers (2.5%), reaching 28,700 workers. The continued growth in Health Care and Social Assistance is related to several factors, including an ongoing rise in new medical procedures and continued population growth. Private Educational Services added 100 workers (1.3%), climbing to an annual average of 7,600 workers in 2024. 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 trended up in 2024, expanding by 900 workers (1.8%). This sector went from an annual average of 49,400 workers in 2023 to an annual average of 50,300 workers in 2024.Establishments included in this supersector include performing arts, fitness centers, museums, arcades, amusement parks, hotels, and restaurants. Tourism plays a significant role in the growth of Leisure and Hospitality. According to Economic Impact of Tourism in South Dakota, 2024, 14.9 million visitors traveled to South Dakota in 2024 compared to 14.7 million visitors in 2023. As visitor levels in the state increase the demand for establishments in this supersector also grows, increasing the need for additional workers.

Other Services (except Public Administration) worker levels rose 2.2%, adding 400 workers during 2024. This sector went from an annual average of 18,100 workers in 2023 to an annual average of 18,500 workers in 2024. The Other Services sector consists of establishments that provide services not listed elsewhere, including repair and personal care services. 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. Growth in this sector is influenced by many things, including increased consumer demand, economic conditions, and population growth.

Government had an increase of 1,100 workers (1.4%). Local Government added 500 (1.0%) 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 400 (1.5%). State Government worker levels rose 2.2%, adding 400 in 2024. State Government Educational Services had a gain of 200 (2.2%). Federal Government added 200 workers (1.7%). Gains in Government can be tied to increases in population. As the population rises, city programs and services also expand to meet the needs of the community.