Iowa's Unemployment Rate Increases to 3.7 Percent in February

Iowa Workforce Development Communications
For Immediate Release
Date: March 25, 2016
Contact: Courtney Maxwell Greene
Telephone: 515-281-9646
Email:  courtney.greene@iwd.iowa.gov

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Iowa's Unemployment Rate Increases to 3.7 Percent in February

DES MOINES, IOWA – Iowa’s seasonally adjusted unemployment rate increased to 3.7 percent in February. The state’s jobless rate was 3.7 percent one year ago. The U.S. unemployment rate remained at 4.9 percent in February.

"This is the first increase in Iowa’s unemployment rate since 2009, and I’m not surprised,” said Iowa Workforce Director Beth Townsend. “Given the number of layoff announcements over recent months, I’m pleased the increase isn’t bigger. The silver lining for workers experiencing layoffs is, they are finding jobs, and Iowa Workforce Development stands ready to provide training and services to displaced workers.”

The number of unemployed Iowans rose to 63,000 in February from 60,200 in January. The current estimate is 800 lower than the year ago level of 63,800.        

The total number of working Iowans increased to 1,651,100 in February. This figure was 1,900 higher than January and 13,700 higher than one year ago.

Seasonally Adjusted Nonfarm Employment

Iowa businesses shed 6,200 jobs in February, lowering total nonfarm employment down to 1,574,400 jobs (-0.4 percent). This month’s decline is the first loss since September and follows an unusually high gain to start the year. Virtually all segments of the Iowa economy scaled back this month, with private sectors losing 5,000 jobs. Government was down 1,200 jobs due to a decline in local government. Government remains little changed versus last year (-100).

Private sector losses were largest in leisure and hospitality this month (-3,100). Accommodations and food services experienced most of the decline. Although the loss was large, it is the first since July for this super sector. Professional and business services trended down for the fourth consecutive month, fueled by losses in administrative and support services. Other losses this month included trade and transportation, information, manufacturing and other services. Conversely, education and health services added jobs this month (+2,200) and has been steadily climbing due to unyielding demand for health care services. The only other major sector to add employment this month was financial activities, up 500 jobs in February. Iowa’s finance industry has steadily advanced over the past several months with jobs last being pared in November 2014.

Despite the monthly decline, Iowa remains up 15,800 jobs compared to last February. Education and health services is now the leader in jobs added (+6,100) due entirely to hiring in health care fields. Construction changed little this month, but remains up 4,300 versus one year ago. Manufacturing continues to navigate the storm and remains down (-3,100). Other losses include professional and business services (-1,800) and information services (-1,600).

MEDIA ALERT:  An audio cut of comments about Iowa’s labor market situation is available by calling (515) 281-6057. Statewide data for March will be released on Friday, April 15, 2016. Local data for March will be posted to the IWD website on Tuesday, April 19, 2016.

Employment and Unemployment In Iowa, Seasonally Adjusted Data         Change from   February  2016 January 2016 February  2015 January  2016 February  2015 Civilian labor force 1,714,100 1,709,500 1,701,200 4,600 12,900 Unemployment 63,000 60,200 63,800 2,800 -800 Unemployment rate 3.7% 3.5% 3.7% 0.2 0.0 Employment 1,651,100 1,649,200 1,637,400 1,900 13,700                 U.S. unemployment rate 4.9% 4.9% 5.5% 0.0 -0.6             Nonfarm Employment In Iowa, Seasonally Adjusted Data             Total nonfarm employment 1,574,400 1,580,600 1,558,600 -6,200 15,800 Mining 2,200 2,300 2,300 -100 -100 Construction 82,500 82,600 78,200 -100 4,300 Manufacturing 214,000 214,200 217,100 -200 -3,100 Trade, transportation and utilities 318,900 320,000 315,400 -1,100 3,500 Information 23,600 24,100 25,200 -500 -1,600 Financial activities 107,800 107,300 104,700 500 3,100 Professional and business services 136,300 138,700 138,100 -2,400 -1,800 Education and health services 229,700 227,500 223,600 2,200 6,100 Leisure and hospitality 140,800 143,900 139,200 -3,100 1,600 Other services 63,100 63,300 59,200 -200 3,900 Government 255,500 256,700 255,600 -1,200 -100

(above data subject to revision)

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