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 51,380 in December 2024. 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 2024

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 December 2024. The labor force increased over the month by 1,000 workers (0.2%) to 487,200 workers. The level of unemployed stayed steady with 9,200 persons unemployed.

South Dakota's December 2024 labor force of 487,200 increased compared to the December 2023 level of 481,700. The level of employed increased by 6,200 (1.3%); the number of unemployed decreased by 700 persons (7.1%). The unemployment rate decreased 0.2% to 1.9%.

South Dakota Unemployment Rates by County

December 2024

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 600 (0.1%) from November 2024 to December 2024.

Construction declined 900 (2.8%) over the month, dropping to 30,900 workers in December 2024. Heavy and Civil Engineering Construction accounted for the bulk of this loss, dropping 600 workers (11.1%). Heavy and Civil Engineering Construction includes establishments in highway concrete paving, land subdivision, gas main construction, underground cable laying, and irrigation systems construction. Specialty Trade Contractors had a loss of 200 workers (1.1%) over the month, and Construction of Buildings declined 100 (1.3%). Drops in Construction are common as winter sets in, making outdoor work more challenging.

Private Education and Health Services had a loss of 800 workers (1.0%) over the month. Private Educational Services decreased 400 (4.7%). Employment declines in Private Educational Services are common this time of year for winter break. Health Care and Social Assistance worker levels fell 400 (0.6%) over the month. Hospitals remained unchanged with 28,900 workers. Establishments in Health Care and Social Assistance include dentist offices, chiropractors, childcare centers, assisted living facilities, and vocational rehabilitation agencies.

Financial Activities added 700 workers (2.6%), reaching 27,200 workers in December 2024. Over half of this growth took place in the Sioux Falls Metropolitan Statistical Area (MSA). The Sioux Falls MSA increased 400 over the month. Worker levels in Financial Activities tend to fluctuate, driven by advancements in technology, demand for financial services, and evolving regulations. Credit card banks, saving institutions, portfolio fund managing, and insurance claims adjusting are examples of establishments.

Over-the-year comparisons

The total nonfarm wage and salaried worker level decreased by 300 workers (0.1%) from December 2023 to December 2024. This growth was the net result of a mixture of increases and decreases spread throughout the industries.

Manufacturing had a loss of 2,800 workers (6.1%) over the year. Most of this loss took place outside the Sioux Falls and Rapid City MSAs. Durable Goods Manufacturing worker levels fell 10.1% over the year with a decline of 2,900 workers. Examples of Durable Goods include trailers, furniture, and electronic equipment. Non-Durable Goods added 100 workers over the year, jumping to 17,200 workers. Non-Durable Goods include food and beverage products, paper products, and fuel.

Construction added 1,600 workers (5.5%), jumping to 30,900 workers in December 2024. Specialty Trade Contractors accounted for a majority of this growth, adding 1,100 workers (6.4%). Specialty Trade Contractors perform a specific activity, such as site preparation, pouring concrete, plumbing, painting, and electrical work. Construction of Buildings increased 400 (5.5%), while Heavy and Civil Engineering added 100 workers (2.1%) over the year. Growth in construction is driven by increased demand for housing, infrastructure updates, and new commercial projects that come with population growth.

Transportation, Warehousing, and Utilities declined 1,000 (6.0%) over the year, dropping to 15,800 workers in December 2024. This loss took place outside the Sioux Falls and Rapid City MSAs, both of which remained unchanged over the year. Losses are a result of small declines spread across multiple establishments within this sector. This sector includes industries that provide general freight trucking, courier services, warehousing and storage for goods, and support activities related to modes of transportation.

Professional and Business Services gained 1,000 workers (2.7%), reaching 38,200 workers in December 2024. Establishments in this sector offer a wide range of services frequently used by other businesses and occasionally households. 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. Growth in Professional and Business Services indicate other businesses are growing at a rate where additional professional services are required.

Private Education and Health Services added 1,000 workers (1.3%). Health Care and Social Assistance increased 1,000 workers (1.4%), reaching 70,600 workers in December 2024. Hospitals added 700 workers (2.5%). Private Educational Services remained unchanged over the year with 8,200 workers in December 2024. Growth in Private Education and Health Services is related to population growth and a rise in medical specializations, both increasing the need for additional staff.

Government added 1,800 workers (2.2%). Local Government increased 900 workers (1.7%), with Local Government Educational Services adding 500 workers (1.7%). State Government added 800 workers (4.3%). State Government Educational Services worker levels increased 100 (1.0%). Federal Government added 100 workers (0.9%). Population growth drives the demand in Government, as communities expand so does the need for additional workers to meet those needs.