Marcia Hultman

Cabinet Secretary

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Labor Market Information Center

Overview of the Current Labor Market

The analysis below is based on the most current labor market data available at any point in time.

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 45,070 in January 2025. 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
January 2025

Map showing estimated labor supply for South Dakota counties. The same data is available in table format at https://dlr.sd.gov/lmic/lbtables/laborsupply.aspx

Labor Force

This data is seasonally adjusted.

Preliminary estimates show South Dakota's unemployment rate remained unchanged at 1.9% in January 2025. The labor force increased over the month by 800 workers (0.2%) to 491,500 workers. The level of unemployed increased by 200 (2.2%) to 9,300 persons unemployed.

South Dakota's January 2025 labor force of 491,500 increased compared to the January 2024 level of 484,400. The level of employed increased by 6,300 (1.3%); the number of unemployed increased by 800 persons (9.4%). The unemployment rate increased 0.2% to 1.9%.

South Dakota Unemployment Rates by County

January 2025

This data is not seasonally adjusted.

Map showing unemployment rates by county in South Dakota. The same data is available in table format at https://dlr.sd.gov/lmic/lbtables/countylf.aspx

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 8,400 (1.8%) from December 2024 to January 2025.

Construction employment fell 6.8% with the loss of 2,000 workers. Specialty Trade Contractors had the largest drop within Construction, dropping 1,200 workers (6.8%). Specialty Trade Contractors perform a specific activity, such as site preparation, pouring concrete, plumbing, painting or doing electrical work. Heavy and Civil Engineering Construction declined 500 workers (11.6%), dropping to 3,800 workers in January 2025. Construction of Buildings worker levels decreased 300 (4.1%) over the month. Construction worker levels typically hit lows this time of year as the ground is frozen, making outside work, such as cement work and painting, difficult.

Leisure and Hospitality declined 2,000 (4.1%), dropping to 47,100 workers in January 2025. Declines in Leisure and Hospitality are expected this time of year as establishments reduce staff to match a drop in visitors. Worker levels in this supersector typically peak in August and dip to lower levels in January and February.

Government decreased 2,000 (2.4%) over the month. State Government had a loss of 1,000 workers (5.2%), with State Government Educational Services dropping 1,100 (11.1%). Local Government also showed a decline over the month with a loss of 800 workers (1.5%). Local Government Educational Services dropped 600 workers (2.0%). Historically, worker levels in both State and Local Government Educational Services drop this time of year as many establishments in educational services reduce their workforce during winter break. Federal Government had a loss of 200 workers (1.7%) from December 2024 to January 2025.

Over-the-year comparisons

The total nonfarm wage and salaried worker level increased by 8,600 workers (1.9%) from January 2024 to January 2025.

Construction added 1,900 workers (7.5%), jumping to 27,300 workers in January 2025. Specialty Trade Contractors added 1,000 workers (6.5%). Construction of Buildings increased 500 (7.6%), while Heavy and Civil Engineering added 400 workers (11.8%) over the year. Growth in construction is driven by increased demand for housing, infrastructure updates, and new commercial projects that come with population growth.

Private Education and Health Services gained 1,700 workers (2.2%) over the year. Health Care and Social Assistance accounted for this growth, adding 2,100 workers (3.0%). Hospitals added 800 workers (2.8%). Worker levels in Health Care and Social Assistance have remained strong due to population increases and increased access to specialized services. As individuals strive to live healthier lifestyles, the demand for services in wellness, nutrition, and mental health also grows. Private Educational Services had a loss of 400 workers (5.1%), dropping to 7,400 workers in January 2025.

Leisure and Hospitality rose 3.3% with the addition of 1,500 workers over the year. Establishments included in this supersector are museums, skiing facilities, arcades, hotels, and restaurants. Over-the-year growth is fueled by increased demand for travel, dining, and entertainment events throughout the state.

Professional and Business Services gained 1,300 workers (3.6%). This sector went from 36,100 workers in January 2024 to 37,400 workers in January 2025. 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. Gains in this supersector indicate other business are growing at a rate where additional professional services are required.

Government added 1,200 workers (1.5%) over the year. Local Government had a gain of 600 workers (1.2%) with Local Government Educational Services adding 200 (0.7%). State Government added 600 workers (3.4%), reaching 18,400 workers in January 2025. State Government Educational Services decreased 200 workers (2.2%). Federal Government remained unchanged with 11,600 workers over the year. As the population rises, city programs and services also grow to meet the needs of the community.