Labor Market Information Center

Overview of the Labor Market

The overview below is based on South Dakota data for September 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 49,230 in September 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
September 2026

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 held steady at 2.0% in September 2026. The labor force decreased over the month by 1,200 (0.2%) to 484,700, and the level of unemployed remained stable with 9,600 unemployed.

South Dakota's September 2026 labor force of 484,700 decreased 9,000 (1.8%) workers compared to the September 2025 level of 493,700. The level of employed decreased by 8,200 (1.7%); the number of unemployed decreased 800 (7.7%). The unemployment rate decreased by 0.1 to 2.0%.

South Dakota Unemployment Rates by County

September 2026

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 2,300 (0.5%) from August 2026 to September 2026 for a total of 474,100. The largest increases were in Government and Private Educational Services, while the largest losses were in Leisure and Hospitality and Construction.

Government employment rose 4,900 (6.4%), reaching 81,400 in September 2026. Local Government and State Government had healthy gains, adding 2,800 (5.7%) and 2,100 (12.3%), respectively. Much of this growth came from educational services: Local Government Educational Services added 5,700 (25.9%), while State Government Educational Services increased 2,200 (29.3%) as another school year began. Federal Government employment levels remained stable at 10,700 for the month.

Private Education and Health Services increased 600 (0.7%) over the month, driven by gains in Private Educational Services, which added 1,100 (16.2%). Gains are typical in the month of September as educational establishments increase staffing at the beginning of the school year. However, Health Care and Social Assistance experienced a decline of 500 (0.7%), which is also common during this time frame. Establishments in Health Care and Social Assistance include dentist offices, chiropractors, childcare centers, assisted living facilities, and vocational rehabilitation agencies. Hospitals also showed a minor loss of 100 (0.3%).

Leisure and Hospitality employment declined in September, dropping 3,500 (5.8%). The Rapid City Metropolitan Statistical Area (MSA) declined 1,700, while the Sioux Falls MSA saw a decline of 1,000. This trend aligns with typical seasonal trends, as tourist destinations scale back staffing in response to a reduction in visitors. Establishments classified within this industry are restaurants, campgrounds, hotels, water parks, and golf courses.

Employment in the Construction sector had a loss of 1,100 (3.3%) over the month, dropping to 32,100. Specialty Trade Contractors experienced the largest drop within this sector, down 900 workers (4.5%). Construction of Buildings also decreased, losing 200 (2.7%) over the month, while Heavy and Civil Engineering Construction remained constant at 5,800. These decreases are typical for this time of year as the colder fall weather makes outdoor construction activities more challenging.

Over-the-year comparisons

The total nonfarm wage and salaried worker level increased by 1,500 workers (0.3%) from September 2025 to September 2026. Over the year, employment levels increased the most in Leisure and Hospitality, Private Education and Health Services, and Construction.

Leisure and Hospitality employment rose by 4,700 (9.0%) over the year. Both the Rapid City and Sioux Falls MSAs contributed to this growth, each adding 800 over the year. Growth within establishments classified as Leisure and Hospitality indicates rising demand and increased staffing to meet that demand.

Employment levels in the Private Education and Health Services sector rose 1.6% over the year with an increase of 1,300. Most of this growth came from Health Care and Social Assistance, which added 1,400 (1.9%). Hospitals contributed an additional 200 (0.7%), bringing employment to 28,800. Private Educational Services declined 100 (1.3%), totaling 7,900 in September 2026. Overall growth in Private Education and Health Services is driven by population increases and expanding medical needs, increasing the need for additional staff.

Construction worker levels continued an upward trend over the year, adding 1,000 (3.2%). Specialty Trade Contractors accounted for most of this increase with a gain of 700 (3.8%). Specialty Trade Contractors perform a specific activity, such as site preparation, pouring concrete, plumbing, painting, and electrical work. Heavy and Civil Engineering employment levels also grew, adding 400 (7.4%), while Construction of Buildings decreased 100 (1.4%). Overall growth in the construction sector is driven by rising demand for housing and new commercial projects associated with population growth.