South Dakota’s business leaders say the state’s economy depends on immigrants. Many warn that tougher immigration enforcement could worsen the state’s worker shortage.
Immigrants in the Workforce
According to U.S. Census Bureau data, immigrants held 5.2 percent of jobs in South Dakota between 2019 and 2023, even though they made up just 4.5 percent of the working-age population.
Their labor force participation rate was 78.4 percent, much higher than the 66.4 percent rate for native-born residents. In manufacturing, 25.6 percent of foreign-born working-age South Dakotans had jobs, compared to 9.2 percent of native-born workers, USAFacts reported.
According to the U.S. Census Bureau’s American Community Survey, South Dakota’s foreign-born population grew by 45.5 percent, or about 10,000 people, between 2010 and 2022.
Business and industry groups have taken notice. The Greater Sioux Falls Chamber of Commerce calls legal immigration and refugee resettlement “proven and important strategies” for meeting workforce needs and urges policymakers to “engage and include all individuals in our state who seek to work together to enhance our communities,” according to its 2025 legislative platform.
The National Milk Producers Federation, which represents South Dakota’s dairy producers, states that “dairy farms will not be able to survive, let alone thrive, without a steady, reliable workforce,” and notes that more than half of all U.S. dairy labor is immigrant labor, according to its 2025 labor and immigration policy statement.
Taneeza Islam, executive director of South Dakota Voices for Peace, said her group works to help new South Dakotans find their place.
“We build power and enable healing in immigrant, refugee, and Muslim communities by amplifying their voices and working in solidarity with all who dismantle bigotry and racism,” Islam said, adding that supporting immigrants also strengthens South Dakota’s workforce and communities. Islam made the statement in receiving the J.M. Kaplan Fund’s Innovation Prize, which highlighted her organization’s mission and approach to advocacy in South Dakota
In 2025, immigrants play a key role in industries like manufacturing (16 percent) and food service (7 percent), according to NCHStats. Many also work in production and healthcare support jobs.
Economic and Community Impact
The latest estimates from the American Immigration Council and NCHStats show that immigrants contribute nearly half a billion dollars in spending power in South Dakota. Immigrant business owners also generate millions in income.
The American Immigration Council reported that in 2018, immigrants made up 4 percent of the state’s population, and another 4 percent were native-born with at least one immigrant parent.
Immigrants are more likely to be of working age. According to the New American Economy, about 67 percent of the foreign-born population is between the ages of 25 and 64, compared to 50 percent of native-born residents.
Business and Immigrant Voices
“South Dakota is a great place for companies to be, but the available workforce has been a little bit of an issue for us,” said David Giovannini, then-plant manager at Molded Fiber Glass in Aberdeen, reflecting on his experience from 2010 to 2012.
“If we had not been able to tap into that reservoir of people, we would have had difficulty. Quite frankly, the refugee workers have been critical to our success as a company,” Giovannini said, according to a report from Lutheran Immigration and Refugee Service.
A Cuban immigrant couple, supported by South Dakota Voices for Peace, described their first months in the state.
“We came to South Dakota for safety and opportunity, but it was very hard at first. We did not speak English and depended on others who did not always treat us well. With help, we found a safe place to live, learned English, and got jobs. Now we can support ourselves and help others at the food pantry,” the couple said in a 2023 testimonial collected by South Dakota Voices for Peace.
Policy Shifts and Enforcement
Homeland Security Secretary Kristi Noem said she plans to use all her authority to enforce immigration laws.
“The authorities that I have under the Department of Homeland Security are broad and extensive, and I plan to use every single one of them to make sure that we’re following the law, that we are following the procedures in place to keep people safe and that we’re making sure we’re following through on what President Trump has promised,” Noem said on CBS’ “Face the Nation,” March 9, 2025, as reported by ABC News.
Sen. John Thune praised the Trump administration’s crackdown on illegal immigration.
“In just two months, his bold action to secure our border and enforce our immigration laws has led to a precipitous drop in illegal crossings at the southern border,” Thune said in remarks delivered on the Senate floor March 25, 2025, according to a press release from his office.
Sen. Mike Rounds has called for stronger border security but also more legal pathways for needed workers.
“Legal immigration is an essential part of our nation’s heritage and will continue to be an important part of our future,” Rounds said on his Senate website.
He added, “I strongly support the H-2B Visa program as an essential tool to support the demands of South Dakota’s economy. We do not have enough workers in our state to fill seasonal positions for many South Dakota industries,” according to an Oct. 30, 2024, press release.
The Bottom Line
Immigrants play a significant role in South Dakota’s workforce, especially in industries facing worker shortages.
Many business leaders and community advocates say these workers are vital to the state’s growth and tax base.
At the same time, state and federal officials stress the need for secure borders and the enforcement of immigration laws.
As policies change, South Dakota faces the challenge of balancing its economic needs with national security and legal requirements—an issue that affects employers, workers, and communities across the state.
All economic and demographic figures cited are the latest available from government and nonprofit sources as of April 2025.
