Prepared to provide background for groups concerned with rural development in South Dakota, this paper addresses the nature, extent, and causes of South Dakota's unemployment and underemployment problems. Findings indicate that while South Dakota's unemployment rate (5.4% in 1983) has traditionally been lower and less volatile than the national rate, participation in the labor force has been increasing from 56.2% in 1970 to 61.6% in 1980, making it difficult for the economy to provide jobs for all who want them. Twenty percent of Native Americans in South Dakota's labor force in 1980 were unemployed, compared to 4% for white persons. In contrast to the nation's economy in which more than 20% of the work force was employed in manufacturing in 1980, only around 10% of South Dakota's employment was in that sector, while 13% was tied to the low-wage farming/ranching sector. Wholesale and retail trade made up 27% and services comprised 23% of the 1982 non-agricultural wage and salary employment, but both are also traditionally relatively low-wage sectors. Estimates indicate there are perhaps 120,000 economically disadvantaged persons in South Dakota, with nearly 70,000 in the potential working age span of 14-64 years and in need of training and employment services. (NEC)