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South Dakota's labor market remains robust as the state's unemployment rate hit a record low of 2.5% in May 2026, according to the latest data released by the South Dakota Department of Labor and Regulation.The state added over 6,000 new jobs in May, continuing a trend of steady job growth that has been observed throughout the year. The leisure and hospitality sector saw the largest gains, adding over 1,500 new jobs, followed by the education and health services sector with over 1,200 new jobs."We are thrilled to see such strong job growth in South Dakota, which is a testament to the hard work and dedication of our state's workforce," said Governor Kristi Noem. "These numbers demonstrate that businesses are thriving and creating opportunities for South Dakotans to succeed."The surge in job creation has been accompanied by a decline in the number of unemployed workers in the state. The unemployment rate dropped from 3.2% in April to 2.5% in May, marking the lowest rate on record for South Dakota."We are seeing a strong demand for workers in a variety of industries, which is driving down the unemployment rate," said Secretary of Labor and Regulation, Marcia Hultman. "Employers are actively hiring and looking for qualified candidates to fill their open positions."In addition to the decline in the unemployment rate, wages in South Dakota have also been on the rise. The average hourly wage increased by 3.5% in May, reaching $23.50 per hour, which is higher than the national average.Despite the positive trends in the labor market, there are still challenges that South Dakota faces, including a tight labor market and a shortage of skilled workers in some industries. However, state officials remain optimistic about the future of the state's economy and are actively working to address these challenges."We are committed to supporting our businesses and workers as we continue to grow and prosper," Governor Noem added. "By working together, we can ensure that South Dakota remains a great place to live, work, and do business for years to come."