Growth has slowed, and some major layoffs have hit local communities. Still, there are signs of good things and new opportunities in SD.
Cimpl's meat plant in Yankton is closing, cutting 277 jobs. This is a major loss for the area. The state is offering help to affected workers.
Accelerate360 is shutting down its Sioux Falls-based remote work unit. That means 324 layoffs, including 45 remote roles based in Minnesota. The company is outsourcing the work.
Federal job cuts are ongoing. Agencies like the USDA and VA have reduced staff. These cuts mostly hit new or probationary employees.
General Mills also announced a global restructuring. The local impact is unclear, but layoffs are expected over time.
South Dakota's economy is cooling. The last quarter of 2024 saw flat growth. Rising taxes, new tariffs, and fewer new residents are adding pressure.
Labor shortages are a key issue. Many jobs remain unfilled. That’s limiting how much companies can grow.
Still, there are bright spots. Interest in data centers is growing. The state’s low taxes and available land are key draws. Personal income is also holding up, which helps consumer spending.
South Dakota is in a transition. The layoffs hurt, especially in Yankton. But the state’s long-term outlook remains hopeful.