March 12, 2021

The unemployment rate in the Sioux Falls area rose slightly from December to January but remains lower than a year ago.

The jobless rate increased from 2.8 percent to 3 percent, according to statistics released Friday by the South Dakota Department of Labor and Regulation. In January 2020, the unemployment rate in the Sioux Falls MSA was 3.4 percent. The high for 2020 came in April when the rate climbed to 10.5 percent as businesses shut down because of the coronavirus pandemic.

January’s unemployment rate represents 4,745 people in the metro area who are looking for work.

From December to January, nonfarm wage and salaried worker levels in the Sioux Falls area dropped by 2,700 people to 154,600. The only category that showed an increase was leisure and hospitality, which gained 100 workers, up .08 percent. The information category was unchanged. The largest percentage declines were in the category that includes construction at 4.5 percent, a loss of 400 workers, and transportation, warehousing and utilities, which lost 200 workers, a 3.5 percent drop.

Statewide, the number of nonfarm wage and salaried workers dropped “significantly” from December to January, with a loss of 9,400 workers, or 2.2 percent, according to a report from the Labor Market Information Center.

“Declines in worker levels are common in January as many seasonal establishments — construction, retail trade, and leisure and hospitality — reduce their workforce as the weather turns colder and the holidays are over,” the report noted. Over the past decade, the decline from December to January has averaged 10,900.

In a year-over-year comparison, the total statewide level decreased by 10,000 workers, or 2.3 percent. “The bulk of the over-the-year worker-level losses are due to the current COVID-19 pandemic,” the report noted.

Leisure and hospitality took the biggest hit with 6,200 fewer workers.

The state’s seasonally adjusted jobless rate was 3.1 percent in January, compared with 2.9 percent a year ago. That represents 14,464 people who do not have jobs, have actively looked for one in the past four weeks and are available to work. The rate was 3.3 percent in December. It reached a record high of 9.2 percent in April, according to final data.

The national unemployment rate in January was 6.3 percent, compared with 3.5 percent a year ago. It was 6.7 percent in December.

Here’s a look at unemployment rates for other cities in January compared with a year ago.

• Rapid City MSA, 3.4 percent vs. 3.9 percent.
• Aberdeen, 3 percent vs. 3.8 percent.
• Brandon, 2.3 percent vs. 2.9 percent.
• Brookings, 3.4 percent vs. 3.9 percent.
• Huron, 3.2 percent vs. 3.6 percent.
• Mitchell, 3 percent vs. 3.4 percent.
• Pierre, 2.8 percent vs. 3.1 percent.
• Spearfish, 2.7 percent vs. 3.2 percent.
• Vermillion, 3.1 percent vs. 3.6 percent.
• Watertown, 3.4 percent vs. 3.6 percent.
• Yankton, 3 percent vs 3.4 percent.