When people think of business in the Black Hills, agriculture or tourism often come to mind first. But those are just pieces of a much larger picture. Our region is powered by a diverse mix of industries that keep the economy strong and the workforce growing. Whether you're running a small business, managing a franchise, or expanding your team, it's helpful to know which sectors are driving progress. Here's a snapshot of the industries shaping the Black Hills today—and what to expect in the years ahead.
Leading Industries in the Black Hills
Government is the region’s largest employment sector, led by Ellsworth Air Force Base. These jobs go beyond the federal level and include city, county, and state positions. One of the advantages of a strong government workforce is the stability it brings to the local economy. In fact, the share of government employment in our region is higher than the national average.
Healthcare is close behind. Rapid City serves as a care hub for a five-state area, and employment in the sector also exceeds the national average. Healthcare is not only growing today—it’s expected to generate more new jobs than any other industry by 2030.
Tourism-related sectors like retail, food service, and accommodations are next in line. With an average of 4.8 million annual visitors, our visitor economy has a deep impact on local employment. Retail ranks fourth among all industries, and accommodations rank seventh by gross regional product. Both sectors employ more people locally than they do in the average U.S. market. These numbers highlight just how vital tourism is to our workforce.
Construction is the fifth-largest industry by economic output, but it leads in job creation over the past five years. That pace is expected to slow slightly, with the sector projected to rank third in job growth by 2030. Even so, demand for skilled trades remains high.
Small Businesses Drive the Economy
When it comes to business size, the data speaks clearly. Nearly two-thirds of employers in the Black Hills have fewer than 10 employees. In fact, 96% of all businesses in the region have fewer than 50 employees. That includes more than 7,700 businesses across Pennington, Meade, and Lawrence counties. Our economy isn’t just influenced by small business—it’s built on it.
A Look at Projected Job Growth
By 2030, the Black Hills region is projected to add 3,255 jobs across all industries.
Healthcare leads in projected growth, with 645 new jobs expected by the end of the decade. Government, which currently holds the top spot for employment, is projected to add 384 new positions. Construction will remain strong, adding 369 new jobs and ranking third for growth.
Other industries expected to see gains include professional and technical services, manufacturing, wholesale and retail trade, and company management.
Why This Matters
The strength of the Black Hills economy lies in its diversity. From healthcare to hospitality, construction to retail, each sector plays a role in shaping our future. And with most businesses operating at a small scale, staying informed about industry trends is more than helpful—it’s essential. The more we understand where our region is headed, the better prepared we are to adapt, grow, and elevate the economy for all.