Marcia Hultman

Cabinet Secretary

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Labor Market Information Center

Overview of the Labor Market

The overview below is based on South Dakota data for March 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 45,895 in March 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
March 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 remained unchanged at 2.3% in March 2026. The labor force decreased over the month by 1,000 workers (0.2%) to 491,800 workers and the level of unemployed increased by 100 (0.9%) to 11,200 persons unemployed.

South Dakota's March 2026 labor force of 491,800 increased compared to the March 2025 level of 490,400. The level of employed increased by 100 persons; the number of unemployed increased by 1,400 persons (14.3%). The unemployment rate increased 0.3% to 2.3%.

South Dakota Unemployment Rates by County

March 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 increased by 900 (0.2%) from February 2026 to March 2026.

Construction added 800 workers (3.0%) over the month, climbing to 27,100 workers in March 2026. Specialty Trade Contractors gained 400 (2.5%). Specialty Trade Contractors perform a specific activity, such as site preparation, pouring concrete, plumbing, painting, or doing electrical work. Heavy and Civil Engineering Construction also had over-the-month gains, adding 200 workers (5.1%). Construction of Buildings gained 200 workers (3.2%), reaching 6,400 workers in March 2026. Construction growth is typical this time of year, as many establishments ramp up worker levels as the temperatures rise.

Private Education and Health Services added 900 workers (1.1%). Growth was concentrated within Health Care and Social Assistance, which gained 900 workers (1.2%) and reached 73,600 workers. Growth was spread across many of the establishments in this sector. Establishments in Health Care and Social Assistance include dentist offices, chiropractors, childcare centers, assisted living facilities, and vocational rehabilitation agencies. Hospitals added 200 workers (0.7%). Private Educational Services remained unchanged with 8,300 workers.

Professional and Business Services worker levels declined 0.8% over the month with a decrease of 300 workers. Establishments in this sector offer a wide range of services frequently used by other businesses and occasionally households. Losses were scattered throughout many of the establishments in this sector. Temporary staffing services, payroll processing services, tax preparation services, engineering services, trash collection services, and security guard services are examples of establishments in this sector.

Leisure and Hospitality had a loss of 1,100 workers (2.2%), declining to 49,500 workers in March 2026. March typically produces gains in worker levels as establishments prepare for demand increases in the summer. This decline may be indicating establishments are holding off on hiring seasonal workers.

Over-the-year comparisons

The total nonfarm wage and salaried worker level increased by 700 workers (0.2%) from March 2025 to March 2026. 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; and Other Services (except Public Administration).

Leisure and Hospitality worker levels increased 2,300, representing a 4.9% increase over the year. Most of this growth was outside of the Sioux Falls and Rapid City Metropolitan Statistical Areas (MSAs). While the Sioux Falls MSA lost 400 workers, the Rapid City MSA recorded an increase of 800 workers. Growth in Leisure and Hospitality is tied to employers expanding their workforce throughout the year to meet ongoing demand.

Private Education and Health Services increased by 1,900 workers (2.4%), with most of the growth taking place in the Sioux Falls and Rapid City MSAs. Statewide, Health Care and Social Assistance added 1,800 workers (2.5%). Hospitals worker levels went up 1.8% with the addition of 500 workers. Private Educational Services added 100 workers (1.2%), increasing to 8,300 workers over the year. These gains stem from several factors, including population growth and an aging population increasing the demand for additional staff.

Other Services (except Public Administration) added 400 workers (2.2%) over the year. As population continues to increase, so does the demand for workers who provide a wide variety of services in this sector. Examples of establishments in this sector include beauty salons, car washes, wedding planning services, civic and social organizations, general automotive repair shops, and pet boarding services.