DES MOINES — Iowa’s seasonally adjusted unemployment rate remained at 3.1 percent for the third straight month. The state’s jobless rate was 3.8 percent one year ago. The U.S. unemployment rate dropped to 4.3 percent in May.
“After two months of losses, Iowa businesses showed some signs of optimism in May with 5,500 jobs added,” said Beth Townsend, Iowa Workforce Development Director. “Hiring in trade, health care and manufacturing establishments helped keep the state growing.”
The number of unemployed Iowans increased to 52,900 in May. The current estimate is 11,200 lower than the year ago level of 64,100.
The total number of working Iowans decreased to 1,636,400 in May. This figure was 3,400 lower than April and 100 higher than one year ago.
Seasonally Adjusted Nonfarm Employment
Iowa establishments expanded in May and added 5,500 jobs. This month’s gain was the first since February and more than offsets losses of 3,500 jobs over the last two months. Aside from government, job growth was evident in most segments of the Iowa economy in May and was led by private services.
Government shed 500 jobs due to larger than expected seasonal declines at the local level. Compared to last year, government trails last year’s mark by 2,000 jobs due to reduced staffing levels at the local level.
Within private industries, trade and transportation added the most jobs this month (+2,400) due to hiring in both retail and wholesale trade. Transportation and utilities shed jobs in May, but remains up 2,500 jobs versus one year ago. Manufacturing added 2,300 jobs this month to help ease some of the recent losses plaguing this sector. Job gains were nearly split between both durable and nondurable goods factories.
Some of the gain this month was due to a surge in hiring in food manufacturing (+800). Smaller gains this month included other services (+1,000), professional and business services (+900), and financial activities (+600). Information services added jobs for the first time since January and increased by 300 jobs in May. Alternatively, job losses were led by leisure and hospitality (-1,200) with declines almost entirely focused in accommodations and food services. Construction experienced another small drop this month (-200) and follows another larger decline in April. The only other loss this month was in education and health care services (-100) due to a reduction in private education services.
Annually, nonfarm employment recovered this month and is up 15,200 jobs versus last May. Trade and transportation has been adding jobs lately in sales and leads all sectors with 7,100 total jobs gained. Education and health care is up 5,100 jobs due entirely to hiring in health care. Professional and business services has advanced steadily (+4,000) due mostly to hiring in professional, scientific, and technical services. Despite a large gain this month, manufacturing continues to lead all sectors in jobs lost versus last May (-1,600). Durable goods factories have been responsible for all of the layoffs as nondurable goods factories have added jobs in food manufacturing and animal slaughtering and processing. Leisure and hospitality is down versus last year (-1,300) with losses being concentrated in accommodation and food services. Construction also trails last year’s record highs due in part to the completion of a few large scale projects and is down (-1,100).