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South Dakota e-Labor Bulletin
January 2026
Federal Government as an employer
The recent federal government shutdown gave us pause to think about it as a South Dakota employer. How big of role does it play in the state’s labor market?
According to annual average data from 2024, the Federal Government employed 11,742 people in South Dakota and paid more than $1 billion in wages. This information is from the Quarterly Census of Employment and Wages (QCEW) program. It uses employment and pay data reported by employers for unemployment insurance purposes.
Federal jobs made up 15.3% of all government employment in the state (including state and local levels) and 2.6% of all jobs, including private industry. Among the three levels of government as shown in the pie graph below, the Federal Government is the smallest employer. Local Government employs the most at 66%, while State Government accounts for 19%.
Pay levels
From another perspective, federal jobs were the highest-paying in South Dakota in 2024, with an average annual wage of $85,214. The next highest was the private sector’s Financial Activities, averaging $84,356.
Where are federal jobs concentrated?
Most federal jobs in South Dakota are in public administration agencies—those that manage public programs and have executive, legislative, or judicial authority.
Looking deeper into the 2024 QCEW data:
- General Medical and Surgical Hospitals employed the most federal workers—3,678 employees with an average annual pay of $91,663.
- The Postal Service was next, with 1,824 employees earning $67,221 on average.
- National Security and International Affairs agencies employed 1,118 workers, averaging $74,696. This group includes the armed forces, National Guard, military bases, and reserves.
Other federal agencies with notable workforces in South Dakota include:
- Environmental Quality Programs – Oversee land, air, and water resources; enforce clean air and water regulations; manage wildlife programs.
- Economic Programs – Promote business development, trade, tourism, and finance; administer financial aid; collect economic data.
- Human Resource Programs – Manage education, public health, and veterans’ services; oversee scholarships, health statistics, mental health programs, and immunizations.
- Justice, Public Order, and Safety – Oversee courts, law enforcement, emergency management, and federal prisons.
Longer-term trends
Since 2014, federal employment grew 10% nationally and 6% in South Dakota. The graph below shows more detail.
What jobs do federal workers hold?
Federal employment covers a wide range of occupations—from expected roles like Office Clerks and Operations Managers to jobs you might not associate with the federal government, such as Registered Nurses and Electricians.
Top federal occupations in South Dakota (those with 200+ employees) include:
- Postal Service Mail Carriers
- Registered Nurses
- Business Operations Specialists
- Postal Service Clerks
- Office Clerks, General
- Information and Record Clerks
- Postal Service Mail Sorters and Processors
- Forest and Conservation Technicians
- Janitors and Cleaners
- Conservation Scientists