Iowa’s seasonally adjusted unemployment rate held steady at 3.4% in January, while the state added 6,400 jobs and its labor force participation rate climbed to 67.9%, according to data released by Iowa Workforce Development Wednesday, April 8.
The U.S. unemployment rate stood at 4.3% in January.
The total number of unemployed Iowans fell to 59,100 in January, down from 59,900 in December. The number of Iowans with jobs rose to 1,684,700 — up 800 from December and 17,000 from a year ago.
“The good news from the January report is the continued increase in the number of Iowans participating in the workforce, the total number of Iowans working and the increase in jobs added within the state,” said Beth Townsend, executive director of Iowa Workforce Development. “Construction added 1,300 jobs, manufacturing added 1,000 jobs and education and health services added 1,100 jobs. Iowa employers continue to hire, and there are over 52,000 new opportunities posted on IowaWORKS.gov for Iowans looking for a job or a new career.”
Iowa’s labor force participation rate in December was revised upward to 67.9% from a previously reported 67.7%, as part of an annual benchmarking revision required by the U.S. Department of Labor’s Bureau of Labor Statistics. The process re-estimates prior-year data as more complete information becomes available, including updated figures from the U.S. Census Bureau. Revised figures were incorporated into the January employment statistics.
Employment sectors show mixed results
Total nonfarm employment reached 1,584,400 jobs in January. Private industry accounted for the bulk of monthly gains, adding 5,000 jobs, while government added 1,400, primarily through student employment at state colleges. Service industries gained 4,000 jobs and goods-producing industries added 2,400.
Despite January’s gains, total annual employment is down 15,300 from a year ago. Private industry has shed 13,500 jobs over that span, while government has lost 1,800.
Professional and business services led all sectors with 1,800 jobs added in January, most of them in administrative support and waste management industries, which include temporary help, landscaping and building maintenance. Construction added 1,300 jobs to open the year, following a gain of 2,100 during the fourth quarter of 2024. Manufacturing added 1,000 jobs, with most of the gains in nondurable goods factories. Losses were recorded in other services (-500) and leisure and hospitality (-200).
Over the past 12 months, trade, transportation and utilities have shed a combined 6,900 jobs — the largest annual decline among major sectors. Retail alone has lost 2,800 jobs, trending downward throughout last year, while wholesale trade dropped 2,000. Leisure and hospitality is down 6,100 jobs annually, with accommodations and food services accounting for 4,000 of that decline. Manufacturing has lost 4,200 jobs over the past year, primarily in durable goods factories (-3,400).
Health care and social assistance has been a relative bright spot, gaining 3,100 jobs over the past 12 months. Administrative support and waste management added 2,300 jobs annually, and educational services added 1,700.
