Yes.
South Dakota has the lowest unemployment rate in the country as of September 2025 data.
According to the U.S. Bureau of Labor Statistics, South Dakota's unemployment rate is 2%, ahead of Hawaii (2.5%), Vermont (2.5%) and North Dakota (2.6%).
South Dakota's unemployment rate was low even before the COVID-19 pandemic – with a rate of 2.5% in February 2020. The rate has stayed in the area of 2% since a brief COVID-era spike..
Behind the positive headlines, however, some job seekers are finding it difficult to find work, including recent college graduates.
Nationwide, 4.59% of college graduates aged 23 to 27 are experiencing unemployment in 2025, up from 3.2% six years earlier.
David Chicoine, former president of South Dakota State University, told News Watch in 2024 that 2% unemployment rate can mean the state doesn't have enough workers to take advantage of new opportunities and sustain growth.
This fact brief responds to conversations such as this one.
Source
U.S. Bureau of Labor Statistics, Unemployment rate for states
Dakota Institute, Is South Dakota’s unemployment rate back to zero?
SiouxFalls.Business, Low unemployment masks tough S.D. market for some job seekers
South Dakota News Watch, Warning signs found in new South Dakota economic data
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This story was produced by South Dakota News Watch, an independent, nonprofit organization. Read more stories and donate at sdnewswatch.org and sign up for an email to get stories when they're published. Contact Michael Klinski at michael.klinski@sdnewswatch.org.
