May 6, 2025

Rapid City edged out Sioux Falls as the metro area with the country’s lowest unemployment rate in March.

The rates in both cities dropped from 2.1 percent in February, when they were tied for the No. 1 spot, according to the U.S. Bureau of Labor Statistics. In March, Rapid City’s jobless rate was 1.7 percent, while in Sioux Falls, it was 1.8 percent.

Across the country, unemployment rates were higher in 279 of the 387 metro areas, compared with a year ago. The South Dakota cities were among 25 that had jobless rates of less than 3 percent.

For the Sioux Falls metro area, which includes Minnehaha, Lincoln, McCook and Turner counties and Rock County in Minnesota, the 1.8 percent rate for March represents 3,202 unemployed people, according to the South Dakota Department of Labor & Regulation. In February, the number of unemployed was 3,603.

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.

The total labor force for the Sioux Falls MSA, those who are employed and unemployed, was 174,801 in March, a decrease from 175,138 the previous month.

A year ago, the metro area jobless rate was 1.6 percent.

The labor supply, those who would be available to staff a new or expanding business, was estimated at 16,000 people in the metro area, down from 16,375 in February. 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 11,770 in March, according to the state’s virtual labor market data system. There were 11,425 open positions the previous month. A year ago, there were 13,188 openings.

Nonfarm wage and salaried worker levels in the Sioux Falls MSA rose by 300 people to 177,400 in March, compared with the previous month. The biggest percentage increase was the category of mining, logging and construction at 1.7 percent, or 200 jobs. Financial activities increased by 1.4 percent, or 200 jobs.

The biggest percentage decline – 1.3 percent — was in leisure and hospitality, which fell by 200 jobs.

Compared with a year ago, overall nonfarm wage and salaried worker levels were up by 500 people in the MSA.

South Dakota’s unemployment rate dipped to 1.8 percent in March from 1.9 percent in February 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 — unchanged from the previous month. Nevada had the highest jobless rate at 5.7 percent.

South Dakota’s jobless rate, which is seasonally adjusted, represents 9,100 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 8,400 unemployed South Dakotans.

In March, South Dakota’s labor force rose by 700 people to 492,900 from the previous month. A year ago, it was 485,400.

The labor supply, those who would be available to staff a new or expanding business, was estimated at 43,685 people. That’s down from 45,360 in February and includes people who are not working and those who would like to change jobs.

The national unemployment rate rose to 4.2 percent in March from 4.1 percent in February. A year ago, the rate was 3.9 percent.