SIOUX FALLS, S.D. (KELO) — Despite a nearly $1 billion decrease in building permit values from September 2022 to September 2023 in Sioux Falls, the city still added construction jobs, according to the Associated General Contractors of America.

The report said 500 construction, mining or logging jobs were added to total 11,900.

Rapid City also gained construction jobs. The city added 500 jobs for a total of 6,300 and a 9% increase.

The additional jobs come as the industry is suffering a shortage of workers that was estimated at more than 500,000 in February, according to Associated Builders and Contractors (ABC).

Unlike Sioux Falls, September building permit values have increased in Rapid City from 2022 to 2023. The total value of permits through from Jan. 1 through Sept. 30 was $382.6 million. This is higher than the total value of $364.6 million 2022.

The construction report said the state gained 1,500 construction jobs. It specified an increase from 27,800 to 29,300 for a 5% growth. Data from the South Dakota Department of Labor and Regulation said the state did post a gain from September to September but it lost 700 jobs from August to September.

Construction numbers have the attention of economists and analysts for several reasons including because the industry makes up about 4% of the U.S. Gross Domestic Product (GDP). It’s also an indicator of growth in a city or state.

The building permit growth coincides with population growth, especially through 2022. SmartAsset this week listed Sioux Falls as the 29th fastest growing city in the U.S. from 2017 to 2022. The analysis reviewed more than 300 of the largest cities in the U.S.

The decrease in building permits plus the estimated growth in the city in 2022 and 2023 indicate the pace of building and growth is slowing some in Sioux Falls.

According to the city of Sioux Falls, an estimated 6,284 residents were added in 2022 for a new estimated population of 208,884. The growth is lower than the 2021 record of 6,750.

Rapid City was listed by the U.S. Census Bureau as the 54th fastest growing city in the U.S. in 2022. The growth rate was 2.74%, which was higher than the rate in Sioux Falls. This ranking was for cities of 50,000 or more.

The estimated 2022 population of Rapid City was about 78,200 for 5.5% growth from 2020. The 2020 population was 74,719.

The Census ranked Sioux Falls as 62nd in growth for cities of 50,000 or more.