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South Dakota e-Labor Bulletin

May 2025

Fact or Fiction? Demystifying Labor Market Data

Workforce data for South Dakota's "Tourism Industry" is elusive.

We all know tourism is a big part of South Dakota’s economy. Employment rises each spring as the "tourism season" begins. We hear about record numbers of visitors and the billions of dollars they spend.

So why can’t we find tourism job and wage numbers in our virtual data system or website? We don’t find “tourism” listed in key tables on our website or even in our annual Workforce Report. Why not?

The answer lies in the North American Industry Classification System (NAICS), which groups like businesses into industries. This system is used nationwide to keep industry data consistent, easy to compare, and reflective of current economic trends.

NAICS groups businesses based on their primary business activities. So even though many businesses serve tourists, they’re placed in different categories. For example, a gift shop and a hotel both serve tourists, but how they serve them differs.

NAICS codes range from broad to very specific. For example, “72” covers Accommodation and Food Services, while “721191” is just for bed and breakfasts. We publish most data at the three-digit level. This follows guidelines in place to protect confidential employer information. Learn more about NAICS.

The industries most directly linked to tourism in South Dakota are:

• Scenic and Sightseeing Transportation (NAICS 487) – like bus tours, trolleys, and helicopter sightseeing rides.
• Museums, Historical Sites, and Similar Institutions (NAICS 712) – including zoos and museums.
• Accommodation (NAICS 721) - hotels, motels, B&Bs, RV parks, and campgrounds.
• Food Services and Drinking Places (NAICS 722) – full-service restaurants, fast food places, snack bars, food trucks, and bars.

The table below shows the importance of these industries using 2024 data.

Measuring tourism’s impact on industries is challenging because some are more reliant on visitors than others. For example, while restaurants and bars benefit from visitor spending, serving locals year-round is their bread and butter.

Additional industries support tourism, even though they don’t typically hire more workers for the tourism season.

• Administrative and Support Services (NAICS 561) - travel agencies and event organizers.
• Membership Associations and Organizations, and Business Associations (NAICS 813) - chambers of commerce, local economic development groups.

Seasonal employment patterns vary somewhat among tourism-reliant industries. But job numbers usually start rising in March or April, then peak in July or August. For example, on average over the last four years:

• Scenic and Sightseeing Transportation added 181 workers (a 536% jump) from March to July.
• Museums, Historical Sites added around 488 workers (a 113% increase) from March to July.
• Accommodation jobs rose about 3,282 (a 49% boost) from March to August.
• Food Services & Drinking Places added about 3,702 jobs (roughly 12%) from March to August.

In short, tourism is thriving in South Dakota – and workforce data are available to prove it. You just need to know where to look. That’s one of the reasons we’re here. Contact us anytime for help finding data like this.