Sioux Falls Labor Pool Tightens as Jobless Rate Hits 1.7%
Employers in the metro face more open jobs than unemployed workers, so expect stronger competition for staff.
Updated on Nov. 2, 2026 in Employment
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The Sioux Falls metro area's jobless rate fell to 1.7 percent in September, returning it to the group of lowest rates in the U.S. alongside Rapid City and Bismarck, North Dakota. Operators in the metro are facing a tight labor pool, with job openings rising to 10,617.
Why it matters
A jobless rate this low means fewer available workers relative to open positions, which pushes local employers to compete harder on wages, scheduling, and recruitment. The rate rose to 2.2 percent in August before dropping again, so the labor market shifted within weeks rather than moving steadily.
The Sioux Falls metro had a 174,967-person labor force in September, with 2,920 people unemployed and 10,617 job openings. Against a 1.8 percent rate a year earlier, the September rate of 1.7 percent is essentially flat, while the national rate stood at 4.2 percent and South Dakota's at 2 percent.
The players
Sioux Falls Job Service
The local public employment office that runs weekly Career Connect hiring events linking Sioux Falls employers with job seekers.
Sanford Health
A large South Dakota-based health system and one of the region's biggest private employers, hosting a Career Connect hiring event on Nov. 5.
A&B Business Solutions
A Sioux Falls business services employer participating in a Career Connect hiring event on Nov. 25.
The details
The jobless rate counts residents who have no job, have actively searched for work in the past four weeks, and are available to take a job, including people on temporary layoff. With roughly 2,920 unemployed against about 10,617 openings, the metro has more open positions than people looking for work. Nonfarm employment in the metro was about 183,600 wage and salary workers, down 0.5 percent, while government added about 1,400 jobs.
Timeline
August 2025: The metro jobless rate stood at 1.8 percent a year earlier.
August 2026: The metro jobless rate climbed to 2.2 percent.
September 2026: The metro jobless rate fell to 1.7 percent.
Nov. 5, 2026: Sanford Health hosts a Career Connect hiring event through Sioux Falls Job Service.
Nov. 25, 2026: A&B Business Solutions hosts a Career Connect hiring event.
Market Landscape
Sioux Falls now matches Rapid City and Bismarck at the bottom of U.S. unemployment rankings, while Cleveland's 1.8 percent in August showed that low rates are not confined to the Plains. South Dakota's 2 percent statewide rate remains the lowest nationally, which keeps competition for workers intense across the region.
Employers in the Sioux Falls metro should expect continued competition for workers and budget for wage and recruiting pressure in the near term. Hiring managers may find that participating in Career Connect events and monitoring open-position data through the state's job portal helps them fill roles faster.
The takeaway
Employers should plan recruiting budgets around a metro with more openings than unemployed workers, and track the next monthly release to see whether the rate holds near 1.7 percent. Operators can also register for the upcoming Career Connect events to reach job seekers directly.
What happens next
Career Connect hiring events are scheduled for Nov. 5 with Sanford Health and Nov. 25 with A&B Business Solutions, both hosted through Sioux Falls Job Service.
Further reading
For context on how hiring conditions are shifting across the region, see more Employment coverage in Sioux Falls.
More information
Browse current listings on the South Dakota Works open-positions portal before attending a Career Connect event.
Source note: This article includes information reported by SiouxFalls.
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