S.D. workforce report projects in-demand jobs, finds wages are up

Oct. 30, 2025

Jobs in South Dakota are expected to grow notably faster than the rest of the nation in the next seven years, with multiple sectors projecting double-digit percentage increases.

An annual report from the South Dakota Department of Labor & Regulation found total employment in the state is projected to grow 7.7 percent by 2032, ahead of the national projection of 2.8 percent.

Here’s a look at the fastest-growing sectors:

• Professional and technical services, 15.2 percent

The largest segments of job growth in this sector are computer systems design and related services, along with management, scientific and technical consulting service — each projected to increase employment more than 20 percent.

“Several factors are contributing to the need for workers within this subsector, including automation, technological advances and the need for expertise and consulting,” the report said. “Retailers and fast-food chains are reducing labor costs through automation, like using self-checkouts and options to order online, through a phone app or at a kiosk in the establishment.”

• Health care and social assistance, 12 percent

Hospitals are among the subsectors predicted to have the highest growth, projected to increase by 16.1 percent, or 4,709 workers, over the next 10 years in South Dakota. This subsector is comprised of establishments providing medical, diagnostic and treatment services and other specialized accommodations by inpatients. Hospitals also may provide outpatient services as a secondary activity.

“The demand for workers in hospitals is an ever-increasing need with a continued aging and increasing population,” the report said. “According to American Community Survey one-year estimates from the U.S. Census Bureau, South Dakota’s population 65 years and older increased by 16.9 percent from 2017 to 2022. Not only is the population increasing in terms of age, but it is also growing in numbers. Within the past five years, 2017-2022, the U.S. Census Bureau estimated an increase of 4.6 percent, 40,158 people, in South Dakota. The rising number of citizens will continue to drive demand for hospital workers.”

• Transportation and warehousing, 11.8 percent

The number of workers in South Dakota’s warehousing and storage subsector is projected to increase by 24.8 percent, or 304 workers, over the next 10 years. Businesses in this subsector are engaged primarily in operating warehousing and storage facilities for general merchandise, refrigerated goods and other warehouse products.

“These fulfillment centers provide facilities to store goods and prepare for their shipment to consumers,” the report said. “A major factor in this projected growth is the continued demand for e-commerce goods. Consumer preferences have been trending more toward online shopping — spurred by the pandemic. As this demand continues, the need for more workers in this subsector will follow.”

• Construction, 11.5 percent

The specialty trade contractors subsector is projected to increase employment by 11.8 percent, or 1,831 workers, over the next decade in South Dakota. Businesses in this subsector perform a specific activity such as preparing the site, pouring concrete, plumbing, painting or performing electrical work involved in building or other types of construction but are not responsible for an entire construction project.

Declining occupations

Just six South Dakota industries are expected to show greater than 1 percent declines in employment through 2032. They’re largely media and publishing related.

“The driving force behind the decline is the availability of news, sports and other content on smart devices such as TVs, smartphones, tablets and laptop computers,” the report said. “Consumer preferences continue to shift toward consuming content from the internet rather than a physical paper product.”

Fastest-growing occupations

Occupations projected to see the highest growth on a percentage basis include wind turbine service technicians, nurse practitioners and data scientists.

Wind turbine service technicians also were the fastest-growing occupation from the 2020-30 projection and still hold the top spot.

“South Dakota is following the national trend because this occupation also held the fastest-growing spot on the national list,” the report said. “It has been over 20 years since the first wind turbines began dotting the South Dakota horizon, and ‘wind techs,’ as they are often called, not only install those big fans but also maintain and repair them as needed. As this natural renewable energy source continues to grow in popularity, the need for these workers is also projected to continue at a whirlwind pace.”

The occupations with the highest average annual demand are fast-food and counter workers, cashiers, farmers, ranchers and other agricultural managers.

Demand is influenced not just by industry growth but by people projected to leave the industry.

In 2022, 46.8 percent of South Dakota’s civilian noninstitutionalized population 55 and older were in the state’s labor force, according to the Current Population Survey conducted by the U.S. Census Bureau for the Bureau of Labor Statistics. This was a drop from 2020, when the labor force participation for those 55 and older was 49.2 percent — even though the number of people in that age cohort increased by 7,000.

“This indicates workers likely exited the labor force at a quicker clip in 2022 than 2020,” the report said. “This is not surprising as more baby boomers are reaching retirement age. It is anticipated as this population continues to age over the 10-year projections period, workers will continue to retire, thereby exiting the labor force.”

Wages grow along with labor force participation

Overall, eight large industry sectors showed worker gains, while three declined. The ones with the highest number of workers were trade, mostly because of retail, transportation and utilities.

The statewide population grew 0.7 percent in 2024, or 6,400 people, to 925,000. The Sioux Falls metro area accounted for 4,200 of those new residents.

Average annual pay for most workers went up last year in South Dakota, the report found. The average annual pay statewide for workers was $58,307 in 2024, up 4 percent from 2023.

Annual pay is affected by the number of hours worked and the rate of pay, the report said.

“Full-time workers normally have higher annual pay than part-time workers do,” it said. “Many of the industries with the lowest annual pay have a sizable percentage of part-time jobs.”

Industry-specific annual pay is determined by the mix of full-time and part-time workers and high-paying and low-paying jobs. Because of the high number of part-time jobs, the leisure and hospitality sector has the lowest annual average pay at $23,631. Federal government workers had the highest annual pay at $85,214.

Average per capita personal income in South Dakota increased by 1.9 percent to $73,959, ranking 16th among states. However, 6.5 percent of South Dakotans hold multiple jobs, more than the national rate of 5.2 percent.

The state’s labor force participation rate was 69.5 percent in 2024, ranking third nationally, and employment rose 1.3 percent, outperforming the national average of 0.2 percent.

South Dakota’s unemployment rate averaged 1.8 percent in 2024, the lowest in the nation, which averaged 4 percent.

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