March 24, 2025

The unemployment rate in the Sioux Falls metro area rose to 2.1 percent in January from 1.9 percent in December — the second consecutive month of losing its spot as the U.S. metro area with the lowest unemployment rate. The 2.1 percent rate was second to Rapid City’s 2 percent.

For the Sioux Falls metro area, which includes Minnehaha, Lincoln, McCook and Turner counties and now Rock County in Minnesota, the 2.1 percent rate represents 3,604 unemployed people, according to the South Dakota Department of Labor & Regulation. In December, the number of unemployed was 3,103.

The jobless rate, which is not seasonally adjusted and is preliminary, represents residents who do not have jobs, have actively looked for one in the past four weeks and are available to work. It also includes those who have been laid off temporarily.

Before December’s report, Sioux Falls had registered the lowest unemployment rate of the 389 metropolitan areas since July, according to the U.S. Bureau of Labor Statistics. Before that, it was tied for No. 1 for three months.

The total labor force for the Sioux Falls MSA, those who are employed and unemployed, was 174,648 in January, an increase from 166,544 the previous month.

A year ago, the metro area jobless rate was 2 percent.

The labor supply, those who would be available to staff a new or expanding business, was estimated at 16,450 people in the metro area, down from 17,750 in December. That includes people who are not working and those who would like to change jobs.

The number of job openings in the Sioux Falls MSA, which does not include Rock County yet, rose to 11,898 in January, according to the state’s virtual labor market data system. There were 11,679 open positions the previous month. A year ago, there were 13,275 openings.

Nonfarm wage and salaried worker levels in the Sioux Falls MSA dropped by 2,300 people to 177,200 in January, compared with the previous month. The biggest percentage declines – 3.7 percent — were in the information category, which fell by 100 jobs, and in transportation, warehousing and utilities, which fell by 300 jobs. Mining, logging and construction fell by 3.3 percent, or 400 jobs.

The only increases were the subcategory of wholesale trade at 1.1 percent, or 100 jobs, and the category of manufacturing at 0.6 percent, or 100 jobs.

Compared with a year ago, overall nonfarm wage and salaried worker levels were up by 2,400 people in the MSA.

South Dakota’s unemployment rate was unchanged at 1.9 percent in January and once again was the lowest rate in the country, according to the U.S. Bureau of Labor Statistics.

The next-lowest rates were North Dakota and Vermont at 2.6 percent. Nevada had the highest jobless rate at 5.8 percent.

South Dakota’s jobless rate, which is seasonally adjusted, represents 9,300 people who do not have jobs, have actively looked for one in the past four weeks and are available to work, along with those laid off temporarily, according to the state Labor Department. A year ago, the rate was 1.7 percent, and there were 8,500 unemployed South Dakotans.

In January, South Dakota’s labor force rose by 4,300 people to 491,500 from the previous month. A year ago, it was 484,400.

The labor supply, those who would be available to staff a new or expanding business, was estimated at 45,070 people. That’s down from 51,380 in December and includes people who are not working and those who would like to change jobs.

The national unemployment rate dipped to 4 percent in January from 4.1 percent in December. A year ago, the rate was 3.7 percent.