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Labor Market Information Center

Overview of the Labor Market

The overview below is based on South Dakota data for July 2026, the most recent data available.

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 50,735 in July 2026. 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
July 2026

Labor Force

This data is seasonally adjusted.

Preliminary estimates show South Dakota's unemployment rate stayed the same at 2.0% in July 2026. The labor force decreased over the month by 1,500 workers (0.3%) to 487,100 workers and the level of unemployed decreased by 200 (2.0%) to 9,700 persons unemployed.

South Dakota's July 2026 labor force of 487,100 decreased 5,300 (1.1%) workers compared to the July 2025 level of 492,400. The level of employed decreased by 5,000 persons (1.0%); the number of unemployed decreased 300 persons (3.0%). The unemployment rate was unchanged 2.0%.

South Dakota Unemployment Rates by County

July 2026

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 4,700 (1.0%) from June 2026 to July 2026. The overall decrease from last month was primarily due to the seasonality within the Government sector. Meanwhile, other sectors such as Leisure & Hospitality, Construction, and Professional & Business Services showed employment increases.     

Government had a loss of 6,100 workers (7.4%) over the month. Local Government worker levels fell 5,900 (10.8%) with Local Government Educational Services dropping 5,800 (21.6%). This kind of drop is normal for summer, since many school employees are off work for the summer. Federal Government decreased by 200 (1.9%), while State Government held steady at 7,200.

Leisure and Hospitality added 1,200 workers (2.1%), jumping to 59,700 in July 2026. Half of the growth took place within the Sioux Falls and Rapid City Metropolitan Statistical Areas (MSA). The Sioux Falls MSA added 200 over the month, and the Rapid City MSA grew by 400. This industry includes hotels, restaurants, casinos, zoos, museums, fitness centers, and water parks, among others. The job gains in this supersector are largely due to higher demand for services related to travel, dining out, and entertainment events across the state.

Construction worker levels continued to trend upward, adding 800 (2.4%) over the month. Specialty Trade Contractors added the most under this sector with 600 (3.1%). These businesses handle specific tasks like site prep, concrete work, plumbing, painting, and electrical jobs. Heavy and Civil Engineering gained 100 (1.7%) over the month, and Construction of Buildings also increased by 100 (1.3%). These kinds of summer increases are expected, since crews are busy fixing roads and working on new building projects.

Professional and Business Services added 600 workers (1.6 percent) over the month. This industry has a wide range of services frequently used by other businesses and occasionally households. Engineering consulting services, computer software consulting services, payroll services, temporary staffing services, graphic design services, landscaping services and garbage collection services are examples of establishments included in this supersector.

Over-the-year comparisons

The total nonfarm wage and salaried worker level increased by 3,300 (0.7%) workers from July 2025 to July 2026. The top contributors to this growth were Leisure and Hospitality, Construction, and Private Education and Health Services.

Leisure and Hospitality experienced growth of 4,700 workers (8.5%). Over-the-year growth is driven by increased demand related to travel, dining out, and entertainment events throughout the state. This sector went from 55,000 in July 2025 to 59,700 in July 2026. Worker level trends for this sector have been consistent each year, typically building up and peaking in August and reflecting lower levels during January and February.

Construction continued to grow over the year, adding 1,300 workers (4.0%). Specialty Trade Contractors increased 1,000 (5.3%), and Heavy and Civil Engineering Construction added 300 (5.4%). Construction of Buildings held steady at 7,700. Overall, employment in the construction sector is being supported by rising demand for housing, infrastructure improvements, and new commercial developments driven by population growth.

Private Education and Health Services added 800 workers (1.0%), reaching 79,900 in July 2026. Most of this growth came from Health Care and Social Assistance, which increased by 600 (0.8%). Hospitals added 300 (1.0%). This increase is driven by several factors, including population growth and an aging population with continual need for health care. Private Educational Services grew by 200 (3.5%), reaching 5,900 in July 2026.