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There will also likely be job opportunities in mental health at the VA Hospitals in Sturgis and Hot Springs.
SD's comment about the type of business being important is correct. This is not the place for a startup tech company obviously. But if you can find a way to tap into the tourist dollars you could do well. And it also seems that well managed service companies can succeed in the area. And niche business's that cater to the outdoorsy/hipster crowd also seem to be growing. We've had a couple of new microbreweries, bike shops, etc open in the last year or two.
If you're good at auto repair, you'll do well in either town. Everyone's open to a good auto repair shop that doesn't bankrupt you like the dealerships do.
Rapid is a nicer area but the city isn't as big. Sioux Falls has a little more to do and is closer to big cities. Rapid city wage isn't the best and cost of living really isn't that cheap but not as expensive as some areas, not sure about Sioux Falls. I plan on moving from rapid and had a few job offers doing exactly what I am now and every single place has offered me a decent amount more and cost of living has been the same in the areas I've looked at. Rapid city winter lately hasn't been so bad but we do get all four seasons. I prefer rapid over Sioux Falls because I've been here my whole life. It is a great place if you're into hiking 4wheeling camping and going to the lake, if you're more of a city person Sioux Falls is better for you.
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