Iowa’s seasonally adjusted unemployment rate decreased to 3.7% in September, down from 3.8% in August but up from 3.3% one year ago, according to data released Dec. 10 by Iowa Workforce Development.
The U.S. unemployment rate rose to 4.4% in September, according to the IWD report.
The September data is the most recent available following the federal government shutdown. Compared with September 2024, Iowa had more employed citizens, a higher labor force participation rate, 3,700 more jobs and 25% fewer new unemployment claims.
Iowa Workforce Development continues to work with federal partners on timelines for delayed data releases. Nonfarm jobs, labor force and unemployment data for October and November will be published Jan. 7, with local area data to follow Jan. 16.
The total number of unemployed Iowans decreased to 64,900 in September, down slightly from 65,800 in August.
The total number of working Iowans increased to 1,676,000 in September, 2,600 higher than August and 16,300 higher than one year ago. The labor force participation rate remained at 67.5%.
Iowa establishments added 3,700 jobs in September, raising total nonfarm employment to 1,598,300. The increase follows a similar gain of 3,600 jobs in August. September’s gains were largely driven by public and private schools hiring more staff than expected as classes resumed. Goods-producing industries also gained 1,900 jobs combined.
Within private industries, construction added the most jobs in September, with 1,300 positions. Specialty trade contractors were responsible for much of the gain. Retail trade continued adding jobs in September with 1,200 positions, bringing the sector’s gains to 2,700 jobs since May. Manufacturing gained 600 jobs, with durable goods producers responsible for most of the increase.
Health care and social assistance continued lowering staffing levels in September, cutting 1,500 jobs. The sector has cut 3,900 jobs over the previous three months.
Compared with the prior 12 months, total nonfarm employment is up 3,700 jobs. Private industry is down slightly since last September, with 600 fewer jobs. Local government increased by 3,900 jobs, primarily at K-12 schools.
Among private industry, construction has added the most jobs annually with 5,500 positions. Health care and social assistance is up 3,000 jobs, followed by other services with 1,600 jobs versus last year.
Manufacturing leads all sectors in jobs lost with 4,100 fewer positions due to cutbacks at durable goods factories. Administrative support and waste management industries are down 3,700 jobs. Leisure and hospitality combined trails last year’s mark by 2,500 jobs.
Local data for September will be posted to the Iowa Workforce Development website Dec. 16.
