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Labor Market Information Center

Overview of the Labor Market

The overview below is based on South Dakota data for Januarcy 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 46,840 in January 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
January 2026

Labor Force

This data is seasonally adjusted.

Preliminary estimates show South Dakota's unemployment rate remained unchanged at 2.2% from December 2025 to January 2026. The labor force decreased over the month by 500 (0.1%) to 493,500, and the level of unemployed increased by 300 (2.8%) to 11,000 persons.

South Dakota's January 2026 labor force of 493,500 increased compared to the January 2025 level of 489,300. The level of employed increased by 2,800 persons; the number of unemployed increased by 1,400 persons (14.6%). The unemployment rate increased 0.2% to 2.2%.

South Dakota Unemployment Rates by County

January 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 decreased by 10,900 (2.3%) from December 2025 to January 2026.

Construction fell 5.3% with the loss of 1,500 workers. Specialty Trade Contractors had the largest drop within Construction, dropping 800 workers (4.7%). 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 400 workers (8.9%), dropping to 4,100 workers in January 2026. Construction of Buildings worker levels decreased 300 (4.5%) 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 exterior painting, difficult.

Leisure and Hospitality declined 1,900 (3.6%), dropping to 50,500 workers in January 2026. 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 2,400 (2.9%) over the month. State Government had a loss of 900 workers (4.8%) with State Government Educational Services dropping 1,000 (10.1%). Local Government also showed a decline over the month with a loss of 1,200 workers (2.3%). Local Government Educational Services dropped 600 workers (2.1%). Historically, worker levels in both State and Local Government Educational Services drop this time of year as some types of educational services workers are not on payrolls during holiday/winter breaks. Federal Government had a loss of 300 workers (2.8%) from December 2025 to January 2026.

Over-the-year comparisons

The total nonfarm wage and salaried worker level increased by 700 workers (0.2%) from January 2025 to January 2026.

Private Education and Health Services gained 1,000 workers (1.3%) over the year. Health Care and Social Assistance accounted for this growth, adding 1,200 workers (1.7%). Hospitals added 200 workers (0.7%). 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 200 workers (2.5%), dropping to 7,800 workers in January 2026.

Leisure and Hospitality rose 7.9% with the addition of 3,700 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.

Other Servies (except Public Administration) increased 600 workers (3.3%) over the year. Increased population growth drives the demand for the services provided in this sector. This sector includes 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.