(From Todd Epp, Northern Plains News)
South Dakota continues to lead the Midwest with the fewest unemployment claims per capita, according to a new WalletHub study released Thursday.
The state ranked ninth nationally for the largest decrease in unemployment claims compared to the previous week and placed first in the region for the lowest number of claims per 100,000 workers.
WalletHub reported South Dakota had just 29 unemployment claims per 100,000 in the labor force. Nebraska and Iowa followed with 53 and 103 claims, respectively.
According to WalletHub, the rankings are based on weekly unemployment claim data from the U.S. Department of Labor and compare current numbers to pre-pandemic benchmarks from the first week of 2020.
State data shows South Dakota reported 36 initial claims during the same week in 2024, compared to 29 this year—a drop of nearly 20 percent.
The South Dakota Department of Labor and Regulation reported the state’s unemployment rate held steady at 1.9 percent in February 2025. According to the U.S. Bureau of Labor Statistics, the national rate was 4.2 percent in March.
Labor force data from the South Dakota Labor Market Information Center shows the state had 492,200 workers in February, an increase of 7,400 compared to February 2024.
Minnesota posted a 3.1 percent unemployment rate in March, based on data from the U.S. Bureau of Labor Statistics. North Dakota reported a 2.5 percent rate.
Delaware saw the biggest drop in claims nationwide, while Michigan experienced the largest increase, according to WalletHub.
A 2024 analysis by the Dakota Institute, a South Dakota-based economic research group, found that the state’s diverse employment base supports stability during national downturns.
Economists note that sustained low unemployment claims could signal a tightening labor market, forcing employers to compete more aggressively for workers through wage increases or changes in hiring standards.
WalletHub compared states and the District of Columbia based on unemployment claim changes across multiple benchmark weeks and also ranked them by claims per 100,000 workers.
For digital publication, an interactive version of WalletHub’s state-by-state unemployment map is available by CLICKING HERE.
