Iowa’s nonfarm employment grew by 600 jobs in June, according to a new Iowa Labor Force Update from the Common Sense Institute, as a 1,100-job gain in the private sector offset a decline of 500 government jobs. Job growth in June was led by trade, transportation and utilities, up 1,500; financial activities, up 700; and education and health services, up 400, partially offset by a 700-job drop in professional and business services and a 1,000-job decline in manufacturing.
The U.S. Bureau of Labor Statistics also revised its May 2026 Iowa employment figures downward by 1,000 jobs, with the largest revisions in professional and business services (-600) and manufacturing and financial activities (-300 each). Nationally, May employment was revised down by 32,000 jobs, a smaller proportional adjustment than Iowa’s.
Even so, Iowa’s job growth for the first half of 2026 remains solidly positive, with 6,100 jobs added since December 2025 — a sharp turnaround from the 1,100 jobs lost at this point last year.
The longer-term picture is weaker. Over the past 12 months, Iowa has shed 9,500 jobs, a 0.6% decline that ranks 46th among all states, versus a 0.3% national growth rate. Only three of Iowa’s 11 major sectors grew over the year: education and health services (+4,500 jobs, +1.8%), construction (+1,700, +2.0%) and financial activities (+700, +0.7%). Manufacturing (-4,300), trade, transportation and utilities (-3,500) and professional and business services (-3,000) posted the steepest annual losses.
Despite the weak annual growth rate, Iowa’s unemployment rate stands at 3.2%, the eighth-lowest in the nation, and its labor force participation rate of 67.3% ranks third-highest nationally.
Private-sector wage growth was mixed: average hourly earnings rose 4 cents over the year to $30.36, while average weekly earnings fell $4.70 to $1,038 and average weekly hours slipped slightly to 34.2.
At the metro level, Des Moines–West Des Moines led the state in raw job growth, adding 1,200 jobs between June 2025 and June 2026, while Iowa City posted the fastest percentage growth among Iowa metros, at an annual rate of 0.9%.
Read the full report: https://www.commonsenseinstituteus.org/iowa/research/jobs-and-our-economy/iowa-jobs-and-labor-force-update-june-2026
