Iowa’s Unemployment Rate Drops to Pre-Pandemic Rate of 2.6 Percent in June

DES MOINES, IOWA – Iowa’s seasonally adjusted unemployment rate dropped to 2.6 percent in June – down from 2.7 percent in May and back to its pre-pandemic level. Iowa establishments added 5,100 jobs in June as the Labor Force Participation Rate also increased to 67.8 percent, up from 67.6 percent last month. The U.S. unemployment rate remained at 3.6 percent in June.

The total number of working Iowans increased to 1,665,500 in June – a figure 8,200 higher than May and 57,900 higher than one year ago. The number of unemployed Iowans decreased to 43,900 in June from 46,800 in May.

“Iowa’s continued unemployment rate decline is proof yet again that our state’s efforts to focus on reemployment are successful and that our state is resilient and strong,” said Gov. Reynolds. “We’ve created an environment where employers want to hire and move past the challenges of the past two years, and where more employable Iowans are eagerly joining the workforce. I’m proud of how far we’ve come and I’m optimistic about the future of Iowa’s workforce.”

“The progress in June speaks for itself. Iowa has reached an important milestone by returning to an unemployment level not seen since before the pandemic,” said Beth Townsend, Director of Iowa Workforce Development. “The efforts to bring Iowans back into the workforce with promising new careers is paying off, but we’re not done yet. We remain focused on removing barriers and helping to fill the 89,000 open jobs across the state.”

Seasonally Adjusted Nonfarm Employment

June’s gain of 5,100 jobs lifted total nonfarm employment to 1,572,800, and was the third consecutive increase with 10,400 jobs added since March. Total nonfarm is now up 42,100 jobs over the past year. Services (both government and private industries) were responsible for most of the movement. Growth in private industries were primarily within accommodations and food services and related to increased summer foot traffic; government gained 2,700 jobs due mostly to local administrations adding jobs to handle seasonal summer jobs. Overall, government rests up 7,200 jobs versus last June.

Leisure and hospitality added the most private sector jobs in June (+2,000), resulting from accommodations and food service industry hires heavily influenced by seasonal gains in recreational camps. Arts, entertainment, and recreational industries scaled back in June following gains in each of the prior two months. Manufacturing added 700 jobs with hiring being nearly split between durable and nondurable goods factories. Manufacturing has now added jobs in seven consecutive months with 11,700 jobs gained during that span. All other jobs gains were relatively small and included other services (+300) and construction (+200). Sector losses were highest in information services (-400) followed by professional and business services (-200), financial activities (-100) and natural resources and mining (-100).

Over the past twelve months, leisure and hospitality added the most jobs (+15,100), mostly from within accommodations and food services (+14,000). Manufacturing continues to bolster payrolls and now rests 8,300 jobs higher than June 2021. Hiring within non-durable goods plants has outpaced durable goods slightly. Annual job losses are light and limited to just health care and social assistance (-700), administrative help and support services (-500), and finance and insurance (-300).

Posted by on Jul 22 2022. Filed under State News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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