Iowa’s seasonally adjusted unemployment rate rose to 3% in October, up from 2.9% in September and 1.16% one year ago, according to the Iowa Workforce Development.
The state’s labor force participation rate dropped by 0.1% to 66.2% last month, and the U.S. unemployment rate remained at 4.1% in October.
“October’s report provides more indications of Iowans’ worry about the general state of the U.S. economy in the run up to the national election,” said Beth Townsend, executive director of Iowa Workforce Development. “Now that we are past the election, we expect employers’ prior hesitation may dissipate. We nonetheless have more than 52,000 jobs posted on iowaworks.gov for any Iowan looking for a new career.”
Seasonally adjusted nonfarm employment
Iowa’s total nonfarm employment fell by 3,700 jobs in October, bringing the state’s workforce to 1,600,200, IWD stated.The decline was driven by goods-producing businesses, with construction and manufacturing accounting for the majority of the losses, shedding a combined 3,400 positions.
Service-providing industries showed relatively minor fluctuations, losing just 300 jobs since September. Meanwhile, the government sector – which includes federal, state, and local agencies as well as schools, universities, and public hospitals – remained stable over the month. However, government employment is up by 3,500 jobs compared to one year ago, largely due to increased hiring within local governments.
Despite the October downturn, private industries in Iowa have added a net 2,600 jobs over the past year.
The construction sector shed 1,800 jobs in October, topping all other industries in employment losses for the second consecutive month, IWD stated. Specialty trade contractors accounted for much of the decline.
Manufacturing also faced setbacks, with 1,600 positions eliminated. Within the industry, durable goods factories bore the brunt of the losses, particularly in machinery and transportation equipment manufacturing. Nondurable goods factories saw slightly smaller reductions.
Other sectors also reported modest declines in October. Financial activities trimmed 800 jobs, trade and transportation lost 700, and professional and business services contracted by 600.
Despite the widespread losses, a few sectors managed to post gains. Health care and social assistance led the way with an addition of 1,100 jobs, driven primarily by social assistance hiring and growth in ambulatory health care services.
Leisure and hospitality added 600 jobs, split between arts, entertainment, and recreation industries, as well as accommodations and food services.
