Iowa unemployment rate climbs to 3.2% in December

Labor force participation rate Increases to 66.4%

Iowa Workforce Development office unemployment
The Iowa Workforce Development office in Des Moines. CREDIT IOWA WORKFORCE DEVELOPMENT

Iowa’s seasonally adjusted unemployment rate increased to 3.2% in December, while the state’s labor force participation rate rose to 66.4% in December amid an influx of recent graduates entering the workforce, according to a report Jan. 24 from Iowa Workforce Development.

Meanwhile, the U.S. unemployment rate decreased to 4.1% in December.

“December’s report shows modest growth as a result of hiring across most parts of the Iowa economy, and employers added 4,000 jobs,” Iowa Workforce Development executive director Beth Townsend said. “The increase in labor force participation was driven largely by college graduates who quickly decided to enter our workforce. With over 50,000 open jobs in Iowa, there is still an abundance of opportunities for graduates and other Iowans looking for their next job.”

The number of unemployed Iowans increased to 53,900 in December, up from 53,000 in November.

The total number of working Iowans rose to 1,635,500 in December – 2,700 higher than November and 19,500 lower than one year ago.

Businesses in Iowa added 4,000 jobs in December, raising total nonfarm employment to 1,606,200 jobs – the second-consecutive increase following a gain of 3,300 jobs in November.

Service industries fueled the hiring and were led by gains in trade and transportation, along with health care and social assistance.

Goods-producing industries were little changed versus November, as increases in construction were matched by losses in manufacturing. Private industries overall advanced by 2,300 jobs compared to November.

Government – a sector that includes federal, state, and local political subdivisions, as well as schools, universities, and public hospitals – increased by 1,700 jobs in December. Most of this movement happened at the local level, with gains coming from local school districts and public administration.

Overall, December’s job increases have brought Iowa’s total nonfarm employment up 7,400 annually.

Construction added 800 jobs in December to lead all industries. This is the second consecutive increase for this sector, which is now up slightly for the year.

Accommodations and food services increased by 600 jobs and has added 2,300 jobs since July. Hotels and motels provided much of the increase this month.

Health care and social assistance added 500 jobs to end the year. This sector has added the most jobs annually and has increased by 2,400 jobs since September.

Trade and transportation combined for an increase of 600 jobs in December. Wholesale and retail trade were responsible for most of the jobs gained and fueled the first monthly increase for trade and transportation since July.

Losses in December were led by manufacturing which shed 800 jobs to end the year. Durable goods factories pared most of the jobs this month, dropping 700 jobs.

Compared to last year, health care and social assistance has gained 4,400 jobs to lead all private sectors. This increase fueled an overall gain of 6,100 jobs in education and health care services.

Leisure and hospitality also increased by 6,100 jobs annually. Most of these gains were in accommodations and food services (+3,900 jobs). Conversely, manufacturing has shed 7,700 jobs over the past 12 months to lead all sectors. Nondurable goods factories are down 4,100 jobs, while durable goods shops combined have pared 3,600 jobs.