South Dakota Economic Advisers Weigh Headwinds as Labor Force Participation Falls to 66.3 Percent
The South Dakota Governor's Council of Economic Advisors met in its quarterly virtual session to discuss economic headwinds facing the state, including a shrinking share of residents in the workforce, struggling farmers and rising costs. Jim Terwilliger, commissioner of the state Bureau of Finance and Management, told council members from across the state that there are headwinds out there, no doubt about it. State government is headquartered in Pierre, in Hughes County.
The share of South Dakota residents aged 16 or older who are working or actively looking for work, known as the labor force participation rate, fell to 66.3 percent in September, down from 68.2 percent in September 2025. Bill Even, commissioner of the Governor's Office of Economic Development, said part of the decline in workforce participation is due to an aging population.
At the same time, the state's job market remains tight. State Economist Derek Johnson said South Dakota has at least three job openings for every unemployed person, with an unemployment rate of 2 percent.
Council members also discussed a recently announced $8 billion federal assistance package for farmers. Briefing the council on the state budget, Johnson said the state's fiscal-year general fund revenue through September was $704 million, about $350,000 above the state's forecast.
Members reported conditions from their communities. Sioux Falls council member Shawn Pritchett said sales tax collections were up through September but warned inflation is beginning to hurt consumer spending, as shown by softer concert ticket sales. Brookings member Carla Gatzke reported new construction across her city, while noting that much metal is imported from Canada and tariff swings impact manufacturing. Rapid City member Caleb Arceneaux reported that visitation to Mount Rushmore and Badlands National Park is down, and that regional visitor spending has also dropped significantly.
Source: GSM · USA (original Chinese edition)
Photo: 位于皮尔市的南达科他州议会大厦（资料图）。CC BY-SA 2.0，经 Wikimedia Commons。 / The South Dakota State Capitol in Pierre (file photo). CC BY-SA 2.0, via Wikimedia Commons.
