South Dakota’s Average Wage Increased by 5.5% in 2022

PIERRE, S.D. – South Dakota’s average annual wage grew by 5.5% over the last year. Today, South Dakotans are making an average of $54,053 per year, according to the Labor Market Information Center.

“South Dakota has seen historic growth over the last few years,” said state Labor and Regulation Secretary Marcia Hultman. “With the lowest unemployment rate in history, we know South Dakotans are working – now we also know they’re earning more well-deserved money for their efforts.”

The dramatic annual wage increase was driven by two factors:

  1. A 2.9% increase in employment covered through reemployment assistance (RA); and,
  2. An 8.5% increase in total wages and salaries, which grew by nearly $1.9 billion in 2022. 

The average annual wage is used to calculate RA benefits for claims opened on or after July 2, 2023. In 2022, 44,194 South Dakotan workers were covered by RA – an increase of over 12,000 workers from 2021.

The minimum weekly RA benefit will remain the same at $28.The maximum weekly benefit will increase from $487 to $514 for new claims opened on or after July 2, 2023. The Department of Labor and Regulation also uses the average weekly wage to calculate workers’ compensation benefits. 

In the last year, leisure and hospitality services; trade, transportation, and utilities; and professional and business services led the state in worker growth. These industries gained 2,583, 2,277, and 2,203 workers, respectively.

The industries with the largest average wage increases in 2022 were: 

  1. Professional and business services, up $6,599 or 9.6%;
  2. Financial activities, up $4,037 or 5.5%; and,
  3. Federal government, up $4,001 or 5.5%.