South Dakota lowest unemployment rate in the nation

PIERRE, S.D.(Northern Plains News)- South Dakota continues to lead the nation with the lowest unemployment rate, holding steady at 1.8 percent in April 2025, according to the U.S. Bureau of Labor Statistics. This rate is less than half the national average of 4.2 percent, underscoring the state’s robust labor market.

The state’s labor force expanded by 700 workers over the month, reaching 493,600. Simultaneously, the number of unemployed individuals decreased by 100, totaling 9,000.

Sector-Specific Growth

Significant employment gains were observed in several sectors:

  • Leisure and Hospitality: Added 1,900 workers, a 4.1 percent increase, bringing the total to 48,400.
  • Construction: Increased by 1,600 workers, a 5.7 percent rise, totaling 29,500.
  • Professional and Business Services: Grew by 1,000 workers, a 2.7 percent uptick, reaching 38,100.

Regional Comparisons

Neighboring states reported higher unemployment rates:

  • North Dakota: 2.6 percent
  • Montana: 2.7 percent
  • Minnesota: 3.2 percent

Looking Ahead

While South Dakota’s labor market remains strong, economists caution that national trends, such as rising costs and supply chain issues, could impact local job markets in the coming months. Policymakers and business leaders will closely monitor the state’s performance as they plan for the second half of 2025.

For more detailed labor market information, visit the South Dakota Department of Labor and Regulation’s Labor Market Information Center.