PIERRE, S.D.(Northern Plains News)- South Dakota’s real labor supply is far larger than the unemployment line.

A new report from the South Dakota Department of Labor and Regulation shows the state has 50,200 potential workers as of July. That includes 9,345 unemployed people, 39,235 already employed but open to changing jobs, and 1,610 discouraged workers.

Nut graph: The data highlights a major disconnect in South Dakota’s workforce. Employers often cite worker shortages, yet the report shows tens of thousands willing or able to work. The issue appears less about headcount and more about job quality, pay, and location.

The Sioux Falls metro area leads with 17,465 available workers, nearly double Rapid City’s 9,285. Rural counties tell a different story. Buffalo County’s labor pool is 43 percent discouraged workers, while Dewey County’s discouraged total makes up almost a quarter of its supply.

Officials caution that labor supply numbers may not match unemployment rolls because they include underemployed and discouraged workers. The Sioux Falls metro designation was expanded this year to include Rock County, Minnesota, in addition to Lincoln, Minnehaha, McCook, and Turner counties.

Source: South Dakota Department of Labor and Regulation, Labor Market Information Center (July 2025).

South Dakota’s unemployment rate ticked up just 0.1 point to 1.9 percent in July, far below the national average of 4.1%. The South Dakota Department of Labor and Regulation reported that 9,200 residents were unemployed statewide, while the labor force declined by 500 workers. Sioux Falls recorded a 1.7 percent jobless rate and Rapid City came in at 1.8 percent.