DES MOINES — Iowa’s seasonally adjusted unemployment rate increased slightly to 3.2 percent for June. The state’s jobless rate was 3.8 percent one year ago. The U.S. unemployment rate rose to 4.4 percent in June.
“Iowa businesses experienced unusually high job growth in June,” said Beth Townsend, Iowa Workforce Development Director. “Annual growth in the state has been weak since the beginning of the year; however, this month’s expansion in total nonfarm employment helped solidify improvements in Iowa’s job market including growth in the service industry, manufacturing and financial services.”
The number of unemployed Iowans increased to 53,600 in June. The current estimate is 10,500 lower than the year ago level of 64,100.
The total number of working Iowans decreased to 1,633,100 in June. This figure was 2,900 lower than May and 3,200 lower than one year ago.
Seasonally Adjusted Nonfarm Employment
Iowa establishments displayed strong hiring in June and added 11,200 jobs. This month’s increase is historically large and due to both gains in private and public sectors. Industries that are seasonal in nature all grew this month with the largest increases being in recreation and eating and drinking establishments. Government also added jobs this month (+4,000) with gains being largely attributable to local governments. Compared to last year, government is now up 600 jobs, whereas private sectors have now advanced by 25,000 jobs following this month’s surge.
Leisure and hospitality added the most jobs this month (+3,100). This was the largest increase among private sectors and breaks a string of seasonal losses stretching back to January. Restaurants and drinking establishments helped boost employment in accommodations and food services this month (+2,000).
Manufacturing followed with its second-consecutive gain in June (+1,600).
Once again, gains were evident in both durable and non-durable goods factories. The monthly increase pulls manufacturing back into the green versus this time last year. Other gains this month included education and healthcare services (+1,500) which experienced its first gain since March. Finance, insurance, and real estate added jobs again this month (+1,100) and hasn’t pared payrolls since last August. Alternatively, losses this month were light and limited to just two sectors: trade, transportation, and utilities (-700) and other services (-400).
Annually, total nonfarm employment rebounded from lackluster annual growth this month and now rests up 25,600 jobs versus last year. Education and healthcare services have added the most jobs over the last twelve months and have been fueled by the expanding healthcare industry (+8,700). Growth in private education services has been stagnant since last June. Trade and transportation continues to trend above last year’s mark despite this month’s drop and has advanced 5,100 jobs. Finance has steadily climbed over the past several months and is now up 4,700 jobs annually. The only sector still trending below last June is information services (-1,200).