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Labor Market Information Center
Overview of the Labor Market
The overview below is based on South Dakota data for December 2025, 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 53,615 in December 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
December 2025
Labor Force
This data is seasonally adjusted.
Preliminary estimates show South Dakota's unemployment rate increased 0.1% to 2.2% in December 2025. The labor force increased over the month by 400 workers (0.1%) to 492,600 workers, and the level of unemployed increased by 400 (3.9%) to 10,600 persons unemployed.
South Dakota's December 2025 labor force of 492,600 increased compared to the December 2024 level of 490,700. The level of employed increased by 400 persons; the number of unemployed increased by 1,500 persons (16.5%). The unemployment rate increased 0.3% to 2.2%.
South Dakota Unemployment Rates by County
December 2025
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 1,300 (0.3%) from November 2025 to December 2025.
Construction declined 1,300 (4.2%) over the month, dropping to 29,700 workers in December 2025. Specialty Trade Contractors accounted for the bulk of this loss, dropping 600 workers (3.3%). Specialty Trade Contractors perform not only new work, but also help with additions, alterations, maintenance, and repairs. Heavy and Civil Engineering Construction had a loss of 400 workers (7.8%) over the month, and Construction of Buildings declined 300 (3.8%). Construction typically experiences declines this time of year as winter weather becomes more severe.
Professional & Business Services lost 1,100 workers (2.8%), falling to 37,800 workers in December 2025. Over half of this loss took place outside of the Sioux Falls and Rapid City Metropolitan Statistical Areas (MSA). The Sioux Falls MSA decreased 300 and the Rapid City MSA decreased 100 over the month. The Professional & Business Services supersector encompasses a broad range of activities, such as accounting and bookkeeping, engineering, specialized design, computer consulting, and advertising. Some businesses may pause hiring or reduce consulting, advertising, and optional professional services as a cost saving measure.
Leisure and Hospitality had an increase of 1,200 workers (2.4%) over the month. The Rapid City Metropolitan Statistical Area (MSA) added 100 workers over the month, while the Sioux Falls MSA added 200. Ski resorts, casinos, fitness centers, hotels, and restaurants are examples of establishments included in this supersector. Growth during this period can also be attributed to a temporary increase in dining and entertainment activity associated with the holiday season. In addition, winter recreational activities such as skiing and snowmobiling increase demand for short-term or part-time employment within the Leisure and Hospitality sector.
Over-the-year comparisons
The total nonfarm wage and salaried worker level increased by 2,900 workers (0.6%) from December 2024 to December 2025. This growth was the net result of a combination of increases and decreases across industries. At the supersector level, the primary contributors to this growth were Leisure and Hospitality; Private Education and Health Services; Other Services (except Public Administration); and Professional and Business Services.
Leisure and Hospitality had the largest over-the-year growth, adding 1,700 workers (3.5%). This supersector experienced fluctuations throughout the year, with the largest increases occurring in April, May, and December. Leisure and Hospitality is cyclical, with demand increases during the summer months and as the holiday season approaches. Growth in Leisure and Hospitality is related to employers increasing worker levels to keep up with demand. Museums, arcades, zoos, casinos, fitness centers, hotels, and restaurants are examples of establishments included in this supersector.
Private Education and Health Services worker levels rose 1.1% over the year with the addition of 900 workers at the supersector level. Most of this growth took place in the Sioux Falls MSA (500 workers) and the Rapid City MSA (200 workers). At the sector level, employment in Health Care and Social Assistance increased by 1,300 workers (1.8%), while Private Educational Services decreased 400 workers (4.9%). Yearly growth within this supersector—particularly in health care—is largely driven by an aging population, which increases demand for services, especially in outpatient care, home health, and long-term care.
Other Services (except Public Administration) increased 500 workers (2.7%) from December 2024 to December 2025. Increased population growth drives the demand for services provided in this sector. Other Services (except Public Administration) include a wide variety of business types, including beauty salons, car washes, wedding planning services, civic and social organizations, general automotive repair shops, and pet boarding services.
Professional and Business Services added 500 workers (1.3%), jumping to 37,800 workers in December 2025. Most of this growth took place outside the Sioux Falls and Rapid City MSAs. The Rapid City MSA added 200 workers while the Sioux Falls MSA declined by 200 workers over the year. Professional and Business Services has a wide range of services frequently used by other businesses and occasionally households. Growth within Professional and Business Services indicates other businesses are growing at a rate where additional professional services are required.