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# Fact brief: Does SD have the lowest unemployment rate in the country?
- URL: https://www.sdnewswatch.org/fact-brief-sd-unemployment-rates-jobs/
- Published: 2026-01-01T11:00:05.000Z
- Updated: 2026-01-01T11:00:04.000Z
- Description: A fact brief that refutes or confirms a claim with supporting information and additional evidence and context.
- Author: Michael Klinski
- Tags: Fact briefs

## Yes.

![](https://storage.ghost.io/c/cb/ab/cbabab5e-2dc6-462c-94a0-b72956c0d224/content/images/2025/01/WhiteFACT-BRIEF--500-x-200-px--2-1-1.png)

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.*](https://www.reddit.com/r/SouthDakota/comments/166qa8v/sds%5Flow%5Funemployment%5Frate%5Fis%5Fbad%5Fnews%5Ffor/?ref=sdnewswatch.org)

### **Source**

U.S. Bureau of Labor Statistics, [Unemployment rate for states](https://www.bls.gov/web/laus/laumstrk.htm?ref=sdnewswatch.org)

Dakota Institute, [Is South Dakota’s unemployment rate back to zero?](https://www.dakotainstitute.org/research%5Fanalysis/is-south-dakotas-labor-market-back-to-normal/?ref=sdnewswatch.org)

SiouxFalls.Business, [Low unemployment masks tough S.D. market for some job seekers](https://siouxfalls.business/low-unemployment-masks-tough-s-d-market-for-some-job-seekers/?ref=sdnewswatch.org)

South Dakota News Watch, [Warning signs found in new South Dakota economic data](https://www.sdnewswatch.org/south-dakota-economy-unemployment-rate-data/)

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[Share your thoughts on this story](https://docs.google.com/forms/d/e/1FAIpQLScdTmGFf24Uhwiwd%5FndSxHkv6oBGSAy1LxF9BbwRbhBK5KflA/viewform?usp=sf%5Flink&ref=sdnewswatch.org)

*This story was produced by *South Dakota News Watch*, an independent, nonprofit organization. Read more stories and donate at* [*sdnewswatch.org*](http://sdnewswatch.org/?ref=sdnewswatch.org) *and* [*sign up for an email*](https://www.sdnewswatch.org/email/) *to get stories when they're published. *Contact Michael Klinski* at michael.klinski@sdnewswatch.org.*