Iowa’s Unemployment Rate Increases Slightly to 2.9 Percent In August

(SBA) -  Iowa’s seasonally adjusted unemployment rate increased slightly to 2.9 percent in August, ending a four-month stint at 2.8 percent. Driven primarily by retirements, the state’s labor force participation rate fell to 66.3 percent from 66.4 percent in July. Meanwhile, the U.S. unemployment rate decreased to 4.2 percent.

“National headwinds continue to cause Iowa employers some collective concern about uncertainty in the U.S. economy,” said Beth Townsend, Executive Director of Iowa Workforce Development. “This might explain the sluggish hiring we are seeing now. However, opportunities still exist, as Iowa’s unemployment level remains low and there are more than 54,000 job openings posted on IowaWORKS.gov. IWD career planners can help match anyone ready to work with those employers who are ready to hire.”

The number of unemployed Iowans increased to 48,400 in August from 47,600 in July.

The total number of working Iowans fell to 1,635,400 in August. This figure is 2,400 lower than July and 20,300 lower than one year ago.

Seasonally Adjusted Nonfarm Employment
Total nonfarm employment decreased slightly in August by shedding 600 jobs and lowering the total to 1,609,400 jobs. This loss follows a similar decline of 200 jobs last month and was the result of private service firms lowering staffing levels over the last 30 days. Goods-producing firms, including manufacturing and construction, advanced slightly since July, gaining 400 jobs. Government (a sector that includes federal, state, and local political subdivisions, as well as schools, universities, and public hospitals) also added 400 jobs. Hiring was divided between state, local, and federal institutions and now rests up 3,900 jobs annually. Total nonfarm employment overall has gained 20,100 jobs over the past year.

Professional and business services shed the most jobs since July (-1,800). This sector has now pared 3,200 jobs since June. Administrative support and waste management was responsible for most of the loss, shedding 1,300 jobs. Leisure and hospitality also lost jobs in August (-500). Accommodations and food services was responsible for all the jobs shed and has been trending down slightly since April. Alternatively, construction added 700 jobs since July, erasing a small drop of 500 jobs last month. Firms involved in new building construction were responsible for most of the loss this month. Other services also added 700 jobs and has now gained 1,300 since May. Financial activities posted the only other major gain in August (+600).

Annually, Iowa establishments have added 20,100 jobs over the past 12 months. Education and health services has gained the most jobs (+10,300). Health care and social assistance has been responsible for most of the gain (+6,000) although private education has also advanced markedly since last year (+4,300). Leisure and hospitality have added 3,900 jobs thanks primarily to hiring in accommodations and food services. On the other hand, manufacturing has shed the most jobs over the past 12 months (-2,200). Nondurable goods factories are responsible for all the loss, as layoffs have been highest in food manufacturing. Other sectors shedding jobs since last August were transportation and warehousing (-1,300) and administrative support and waste management industries (-1,300).

Visit www.iowalmi.gov for more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.