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

Iowa Workforce Development Communications
For Immediate Release
Date: July 21, 2022
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email:  communications@iwd.iowa.gov

Printer Friendly Version (PDF)

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

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).

MEDIA ALERT:  Local data for June 2022 will be posted to the IWD website on Tuesday, July 26, 2022.  Statewide data for July 2022 will be released on Thursday, August 18, 2022 at 9 a.m.
 

Employment and Unemployment in Iowa, Seasonally Adjusted Data
           
        Change from
  June May June May June
  2022 2022 2021 2022 2021
           
Civilian labor force 1,709,400 1,704,100 1,682,800 5,300 26,600
Unemployment 43,900 46,800 75,300 -2,900 -31,400
Unemployment rate 2.6% 2.7% 4.5% -0.1 -1.9
Employment 1,665,500 1,657,300 1,607,600 8,200 57,900
Labor Force Participation Rate 67.8% 67.6% 67.2% 0.2 0.6
           
U.S. unemployment rate 3.6% 3.6% 5.9% 0.0 -2.3
           
Nonfarm Employment in Iowa, Seasonally Adjusted Data
           
Total Nonfarm Employment 1,572,800 1,567,700 1,530,700 5,100 42,100
Mining 2,200 2,300 2,300 -100 -100
Construction 79,600 79,400 77,400 200 2,200
Manufacturing 225,500 224,800 217,200 700 8,300
Trade, transportation and utilities 312,900 312,900 307,000 0 5,900
Information 18,900 19,300 18,700 -400 200
Financial activities 109,200 109,300 108,900 -100 300
Professional and business services 140,500 140,700 139,500 -200 1,000
Education and health services 225,000 225,000 225,100 0 -100
Leisure and hospitality 142,100 140,100 127,000 2,000 15,100
Other services 56,300 56,000 54,200 300 2,100
Government 260,600 257,900 253,400 2,700 7,200
 (above data subject to revision)          

 

Unemployment Insurance Claims for Iowa
           
        % Change from
  June May June May June
  2022 2022 2021 2022 2021
           
Initial claims 6,420 5,566 9,595 15.3% -33.1%
Continued claims          
     Benefit recipients 8,889 9,398 22,066 -5.4% -59.7%
     Weeks paid 29,043 24,244 82,559 19.8% -64.8%
     Amount paid $12,478,779 $11,155,734 $30,673,186 11.9% -59.3%

 

###

 

Individual