May Unemployment Rate Remains Stable at 3.9 Percent

Iowa Workforce Development Communications
For Immediate Release
Date: June 17, 2016
Contact: Courtney Maxwell Greene
Telephone: 515-281-9646
Email:  courtney.greene@iwd.iowa.gov

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May Unemployment Rate Remains Stable at 3.9 Percent

Iowa’s seasonally adjusted unemployment rate remained at 3.9 percent in May. The state’s jobless rate was 3.6 percent one year ago. The U.S. unemployment rate dropped to 4.7 percent in May compared to 5.0 percent in April.

"Consistent with the anemic job report posted nationally, Iowa did not see a decrease in the unemployment rate in May,” said Iowa Workforce Development Director Beth Townsend. “Although Iowa's unemployment rate remained at 3.9 percent, Iowa saw a decline in its labor force. The drop may be attributed to a number of factors.  On the positive side, construction, health services and education continue to lead all job sectors in growth for the year." 

The number of unemployed Iowans rose to 66,500 in May from 66,200 in April. The current estimate is 4,500 higher than the year ago level of 62,000.

The total number of working Iowans decreased to 1,644,800 in May. This figure was 2,600 lower than April and 8,200 higher than one year ago.

Seasonally Adjusted Nonfarm Employment

Total nonfarm employment shed 4,200 jobs in May and now rests at 1,577,900. The decrease is the second for 2016 and is primarily due to cut backs in goods producing sectors. Service industries were nearly unchanged versus April. Private industry shed a combined 3,700 jobs and government was reduced by 500. The loss in government was due to drops in local and state government and was partially offset by a gain of 200 at the federal level. Compared to last year, government remains up 2,100 jobs.

Manufacturing experienced a sharp decline this month in durable goods factories with 2,700 jobs pared overall. This sector has been steadily trending down and dealing with reduced demand forecasts for machinery and transportation products. Construction also experienced a reduction in May (-1,400); however, this drop follows very large gains in March and April which saw a combined 6,900 jobs added, so this month’s decline may represent a seasonal shift. Other sectors losing jobs this month included professional and business services (-600) and financial activities (-500). Alternatively, gains were sporadic in May and were led by education and health services (+700). Private education fueled the growth this month as health care shed 200 jobs. Trade and transportation was buoyed by hiring in wholesale and retail trade this month and added 300 jobs. Information, other services, and leisure and hospitality also trended up slightly.

Annually, nonfarm employment remains up 18,000 jobs or 1.2 percent. Despite a drop this month, construction leads all sectors in both jobs gained (+10,400) and by percentage increase (+13.4). Education and health services has also fared well annually (+5,700) due mostly to hiring in private health care. Losses are still being fueled by durable goods manufacturing (-7,300) which has added jobs just once since January of 2015. Other sectors paring jobs annually were professional and business services and information, each down 1,700 jobs.

MEDIA ALERT:  An audio cut of comments about Iowa’s labor market situation is available by calling (515) 281-6057. Statewide data for June will be released on Friday, July 22, 2016. Local data for June will be posted to the IWD website on Tuesday, July 26, 2016.

Employment and Unemployment in Iowa, Seasonally Adjusted Data
           
        Change from
  May April May April May
  2016 2016 2015 2016 2015
           
Civilian labor force 1,711,400 1,713,600 1,698,600 -2,200 12,800
Unemployment 66,500 66,200 62,000 300 4,500
Unemployment rate 3.9% 3.9% 3.6% 0.0 0.3
Employment 1,644,800 1,647,400 1,636,600 -2,600 8,200
           
U.S. unemployment rate 4.7% 5.0% 5.5% -0.3 -0.8
           
Nonfarm Employment in Iowa, Seasonally Adjusted Data
           
Total Nonfarm Employment 1,577,900 1,582,100 1,559,900 -4,200 18,000
Mining 2,200 2,200 2,300 0 -100
Construction 87,900 89,300 77,500 -1,400 10,400
Manufacturing 208,900 211,600 216,200 -2,700 -7,300
Trade, transportation and utilities 317,200 316,900 315,700 300 1,500
Information 23,500 23,300 25,200 200 -1,700
Financial activities 108,600 109,100 105,400 -500 3,200
Professional and business           
    services 138,000 138,600 139,700 -600 -1,700
Education and health services 230,200 229,500 224,500 700 5,700
Leisure and hospitality 142,100 142,000 139,400 100 2,700
Other services 62,600 62,400 59,400 200 3,200
Government 256,700 257,200 254,600 -500 2,100

(above data subject to revision)

Unemployment Insurance Claims for Iowa
           
        % Change from
  May April May April May
  2016 2016 2015 2016 2015
           
Initial claims 10,382 10,082 10,748 3.0% -3.4%
Continued claims          
     Number of claimants 24,313 29,149 22,214 -16.6% 9.4%
     Weeks paid 74,021 85,625 68,430 -13.6% 8.2%
     Amount paid $26,757,397 $30,832,382 $23,605,753 -13.2% 13.4%

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