Local unemployment rate rises for fourth straight month
May 18, 2026
The unemployment rate in the Sioux Falls metro area rose to 2.6 percent in February from 2.5 percent in January — the fourth consecutive monthly increase.
That’s the third-best jobless rate for metro areas in the country, according to the U.S. Bureau of Labor Statistics.
Urban Honolulu once again had the lowest metro area jobless rate in February at 2.2 percent.
For the Sioux Falls metro area, which includes Minnehaha, Lincoln, McCook and Turner counties and Rock County in Minnesota, the 2.6 percent rate represents 4,656 unemployed people, according to the South Dakota Department of Labor & Regulation. In January, the number of unemployed was 4,377.

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.
A year ago, the metro area jobless rate was 2.2 percent, with 3,935 unemployed people.
The total labor force for the Sioux Falls MSA, those who are employed and unemployed, was 176,129 in February, an increase from 175,670 in January and up from 175,577 a year ago.
The number of job openings in the Sioux Falls MSA rose to 10,224 in February, according to the state’s virtual labor market data system. There were 9,923 open positions the previous month. A year ago, there were 11,637 openings.
Nonfarm wage and salaried worker levels in the Sioux Falls MSA dipped by 100 people to 179,100 in February compared with the previous month but rose from 178,700 a year ago.
South Dakota’s unemployment rate was 2.3 percent in February, up from 2.2 percent in January. It remained the lowest in the country along with Hawaii. The District of Columbia had the highest unemployment rate at 6.7 percent, and the next-highest rate was 5.4 percent in California and Delaware.
South Dakota’s jobless rate, which is seasonally adjusted, represents 11,142 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. In January, there were 10,965 unemployed South Dakotans.
A year ago, the rate was 2 percent, and there were 9,733 unemployed residents.

In February, South Dakota’s labor force was 491,800, a decrease of 700 people from January. A year ago, it was 489,890.
The national unemployment rate was 4.4 percent in February, compared with 4.1 percent a year ago. It was 4.3 percent in January.
Sioux Falls Job Service is hosting weekly Career Connect events this month from 10 a.m. to 1 p.m. The events are in Sioux Falls One Stop office at 1501 S. Highline Ave., Suite 1D.
Here’s the schedule:
- May 21: Pipestone
- May 28: Laborers Local 620.
To view open positions before the events, visit southdakotaworks.org.
Businesses interested in participating in future events should contact Paul Robson, business services specialist in the Sioux Falls Job Service office, at 605-910-4833.





