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Labor Market Information Center

Overview of the Labor Market

The overview below is based on South Dakota data for August 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 51,650 in August 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
August 2026

Labor Force

This data is seasonally adjusted.

Preliminary estimates show South Dakota's unemployment rate stayed the same at 2.0% in August 2026. The labor force decreased over the month by 1,200 workers (0.2%) to 485,900 workers, and the level of unemployed decreased by 100 (1.0%) to 9,600 persons.

South Dakota's August 2026 labor force of 485,900 decreased 7,200 (1.5%) workers compared to the August 2025 level of 493,100. The level of employed decreased by 6,600 persons (1.4%); the number of unemployed decreased 600 persons (5.9%). The unemployment rate decreased by 0.1 to 2.0%.

South Dakota Unemployment Rates by County

August 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 remained stable at 475,600 workers (0.0%) from July 2026 to August 2026. A mixture of gains and losses over the month were spread over several industries. The largest increases were found in Leisure and Hospitality, Private Education and Health Servies, and Government. The largest decline was in Trade, Transportation, and Utilities.

Leisure and Hospitality added 1,100 workers (1.9%), jumping to 60,400 in August 2026. Over half of the growth took place within the Rapid City Metropolitan Statistical Area (MSA), which grew by 700 (5.2%). This industry includes places like hotels, restaurants, casinos, zoos, museums, fitness centers, and water parks. The job gains in this supersector are largely due to higher demand for travel, dining, and entertainment events across the state.

Private Education and Health Services gained 1,000 workers (1.2%) over the month. Most of the growth took place outside of the Sioux Falls and Rapid City MSAs. Private Educational Services accounted for most of this growth, adding 800 workers (13.3%), while Health Care and Social Assistance added another 200 (0.3%). Establishments in Health Care and Social Assistance include dentist offices, chiropractors, childcare centers, assisted living facilities, and vocational rehabilitation agencies. Hospitals remained unchanged with 28,900 workers.

Government added 500 workers (0.7%), reaching 76,500 workers in August 2026. Local Government and Federal Government each added 100 over the month. State Government gained 300 (1.8%), reaching an employment level of 17,100. This type of growth is typical this time of year as many establishments in educational services ramp up their workforce to prepare for a new school year.

Trade, Transportation, and Utilities declined by 1,300 workers (1.4%) over the month. All the subsectors within Trade, Transportation, and Utilities showed a decline. Employment levels in Retail Trade declined by 700 (1.3%). Transportation, Warehousing, and Utilities showed a decrease of 400 (2.5%), and Wholesale Trade lost 200 (0.9%) over the month. 

Over-the-year comparisons

The total nonfarm wage and salaried worker level increased by 1,600 workers (0.3%) from August 2025 to August 2026. The top contributors to this growth were Leisure and Hospitality, Private Education and Health Services, and Construction.

Leisure and Hospitality experienced growth over the year with the addition of 4,500 workers (8.1%). The Rapid City MSA added 300 (2.2%), and the Sioux Falls MSA added 900 (4.6%). Over-the-year growth continues to be driven by strong consumer demand for travel, dining, and entertainment events across the state.

Construction worker levels rose 3.8% over the year with the addition of 1,200 workers. Growth was spread among two subsectors in Construction. Specialty Trade Contractors added 1,100 (5.9%), and Heavy and Civil Engineering Construction added 200 (3.6%). Construction of Buildings declined 100 (1.3%). Growth in construction is driven by increased demand for housing and new commercial projects that come with population growth.

Private Education and Health Services increased 1,500 workers (1.9%). Health Care and Social Assistance added 1,200 jobs (1.6%), reaching an employment level of 74,400 in August 2026. Hospitals added 200 (0.7%). Over-the-year growth in Health Care and Social Assistance is related to population growth along with an increasingly aging population. Private Educational Services obtained a gain of 300 (4.6%).