South Dakota’s GDP, population, and labor force participation rate have all risen while overall poverty rates continued to fall. However, the state’s Labor Department does report some challenges looking toward 2026 and beyond.
The state Department of Labor and Regulation released their most recent workforce report this week, which compiles data up to 2024.
Of South Dakota’s industries, all but two sectors remained at neutral or grew from 2023. However, agriculture, forestry, fishing and hunting saw the largest decline—despite being one of the state’s largest industries.
The ag sector retracted by nearly 32 percent between 2023 and ‘24. Marcia Hultman is Secretary of the state Department of Labor and Regulation.
“Well, as you know there is a lot going on in our ag community," Hultman said. "Cattle ranchers are doing great, and then with some of our commodities we’re just working, watching and waiting to see what happens at the federal level as they negotiate some of those deals and look at what tariffs are doing.”
This data precedes the most recent round of Trump Administration tariffs. These have hit farm country hard, particularly soybean sales to China.
The report shows overall workforce participation held steady, but well above the national average. Hultman said it reflects South Dakota values.
“We traditionally have a very high workforce participation rate, which isn’t surprising to anyone who knows our work ethic in South Dakota," Hultman said. "I’m happy to see our population is growing a little bit, because as our businesses grow and expand, they’ll need more workers.”
For those not in the state labor force, the majority aren’t actively seeking a job. That population mostly consists of adults at or approaching retirement age.
The state population continues to increase, nearing 950,000 across South Dakota. However, Hultman said those people are heavily concentrated.
“We do see a lot of that growth however in the Sioux Falls metro and the Rapid City area, those areas account for almost half of the state’s population at this time,” Hultman said.