New analysis from Common Sense Institute, based on the latest U.S. Bureau of Labor Statistics (BLS) data, finds Iowa’s labor market continued to weaken in early 2026, with job losses and below-average growth compared to national trends.
Common Sense Institute Iowa (CSI) is a non-partisan research organization dedicated to the protection and promotion of Iowa’s economy. You can read the full report here.
Iowa lost 500 nonfarm jobs in March, following broader declines earlier in the year. Over the past 12 months, the state has shed 20,700 jobs, a decrease of 1.3%, ranking 46th nationally in job growth, well below the national average of +0.2%.
Key Findings
Iowa has lost 2,200 jobs in the first three months of the year, marking the weakest first-quarter performance of the post-pandemic period
Only 3 of 11 sectors added jobs over the past year, while the majority experienced declines
Job losses were led by trade, transportation, and utilities (-8,800 jobs), leisure and hospitality (-4,900 jobs), and manufacturing (-3,800 jobs)
Despite these declines, labor market indicators remain relatively strong.
Iowa’s unemployment rate stands at 3.3%, the 9th lowest nationally, and labor force participation is 67.7%, the 3rd highest nationally.
The analysis shows that while Iowa maintains relatively low unemployment and strong workforce participation, overall job growth continues to lag, with sustained employment declines across much of the economy.
