Iowa's Unemployment Rate Increases to 3.8 Percent in March

Iowa Workforce Development Communications
For Immediate Release
Date: April 15, 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 3.8 Percent in March

Iowa’s seasonally adjusted unemployment rate increased slightly to 3.8 percent in March from 3.7 percent in February. The state’s jobless rate was 3.7 percent one year ago. The U.S. unemployment rate increased to 5.0 percent in March.

“Although a few sectors of Iowa’s economy, such as construction, continue to expand, Iowa’s unemployment rate ticked up in March confirming signs of weakness in other sectors, particularly manufacturing,” said Iowa Workforce Development Director Beth Townsend. "However the good news is, as evidenced by the 54,000 jobs listed on our iowajobs.org website, Iowa employers are still hiring."

The number of unemployed Iowans rose to 65,300 in March from 63,200 in February. The current estimate is 2,400 higher than the year ago level of 62,900.

The total number of working Iowans decreased to 1,649,400 in March. This figure was 1,600 lower than February and 12,100 higher than one year ago.

Seasonally Adjusted Nonfarm Employment

Following a drop last month, Iowa nonfarm employment resumed adding jobs in March. The increase of 1,600 was modest, and generally the result of private industry bolstering employment. Government changed little versus February and hasn’t moved much compared to last March (-100) with state government declines being offset by hiring in local and federal government. With this month’s gain, Iowa nonfarm employment increased to 1,575,400 jobs total—15,300 jobs more than one year ago.

Construction posted the largest single gain this month (+3,600). The gain may partially be the result of firms starting work early this year coupled with the undertaking of new commercial and infrastructure projects. Employment in construction is expected to rise through 2016. Other sectors that added employment this month included trade and transportation, professional and business services, and leisure and hospitality. 

Alternatively, the manufacturing sector felt the effects of waning demand this month (-3,000). Job loss was particularly heavy in durable goods factories (-2,400) and partially due to cutbacks within transportation equipment manufacturers. Education and health care shed jobs this month (-800). The loss was mostly centered within health care (-700). Iowa’s finance sector lost jobs for the first time in several months in March; however, the loss (-500) wasn’t severe and this sector remains markedly up compared to one year ago.

Compared to last year, Iowa nonfarm employment continues to trend up, although the pace has started to show signs of slowing down. Construction has been responsible for almost half of the jobs added (+7,500) and is expected to remain strong through the summer. Education and health care has also fared well versus one year ago (+4,600), as is true with trade and transportation (+4,400). The sectors not performing well over the past twelve months include manufacturing (-6,100), information (-1,600), and professional and business services (-1,500).

MEDIA ALERT:  An audio cut of comments about Iowa’s labor market situation is available by calling (515) 281-6057. Statewide data for April will be released on Friday, May 20, 2016. Local data for April will be posted to the IWD website on Wednesday, May 25, 2016.

Employment and Unemployment In Iowa, Seasonally Adjusted Data         Change from   March  2016 February 2016 March  2015 February  2016 March  2015 Civilian labor force 1,714,700 1,714,200 1,700,200 500 14,500 Unemployment 65,300 63,200 62,900 2,100 2,400 Unemployment rate 3.8% 3.7% 3.7% 0.1 0.1 Employment 1,649,400 1,651,000 1,637,300 -1,600 12,100                 U.S. unemployment rate 5.0% 4.9% 5.5% 0.1 -0.5             Nonfarm Employment In Iowa, Seasonally Adjusted Data             Total nonfarm employment 1,574,400 1,573,800 1,560,100 1,600 15,300 Mining 2,300 2,200 2,400 100 -100 Construction 86,000 82,400 78,500 3,600 7,500 Manufacturing 210,900 213,900 217,000 -3,000 -6,100 Trade, transportation and utilities 319,900 319,000 315,500 900 4,400 Information 23,400 23,500 25,000 -100 -1,600 Financial activities 107,300 107,800 105,000 -500 2,300 Professional and business services 137,100 136,200 138,600 900 -1,500 Education and health services 228,400 229,200 223,800 -800 4,600 Leisure and hospitality 141,800 141,500 139,500 300 2,300 Other services 63,000 62,900 59,400 100 3,600 Government 255,300 255,200 255,400 100 -100

(above data subject to revision)