PIERRE, S.D. (SDBA) — South Dakota’s unemployment rate stayed at 1.9 percent in January, well below the national average of 4.1 percent, according to a report released Friday by the state Department of Labor and Regulation.

The state’s workforce grew to 491,500 people in January. That’s up 0.2 percent from December and 1.5 percent higher than one year ago.

About 45,070 workers remain available statewide to fill jobs at new or expanding businesses.

Construction jobs increased by 7.5 percent compared to January 2024, adding 1,900 workers despite typical winter slowdowns. However, the industry saw a seasonal decline of 6.8 percent from December.

The health care and social assistance sectors gained 2,100 jobs over the past year, an increase of 3 percent. Hospitals alone added 800 new employees.

Sioux Falls continues to lead South Dakota economically, with average annual pay at $63,530 compared to the statewide average of $57,141.

Union County reported the state’s highest average wage, $71,873, while Mellette County had the lowest, $34,887.

Inflation remains a factor for South Dakotans. The Consumer Price Index rose by 3 percent compared to January 2024.

Housing starts fell by nearly 10 percent from December and dropped slightly—0.7 percent—from one year ago. That signals a modest cooling in the construction market.

Borrowing costs improved for businesses and consumers as the Bank Prime Loan Rate dropped to 7.50 percent. That’s down almost 12 percent from last January.

Leisure and hospitality employment grew by 3.3 percent over the past year, adding 1,500 jobs statewide. The sector still saw a seasonal decline of 4.1 percent from December levels.

Professional and business services also expanded, gaining 1,300 jobs since last January. The sector now employs about 37,400 people statewide.

In January, county-level unemployment varied widely across South Dakota. Rates ranged from a low of 0.8 percent to a high of 4.7 percent in counties with fewer job opportunities.

State officials say overall job creation remains strong statewide heading into spring. Employers’ primary challenge is finding enough available workers, rather than creating new positions.

Todd Epp is the remote legislative reporter for the South Dakota Broadcasters Association.

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