Iowa’s Unemployment Rate Decreases to 3.5 Percent in December

Iowa Workforce Development Communications
For Immediate Release
Date: January 25, 2022
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email:  communications@iwd.iowa.gov

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Iowa's Unemployment Rate Decreases to 3.5 Percent in December

Iowa’s seasonally adjusted unemployment rate fell to 3.5 percent in December, down from 3.7 percent in November and 3.7 percent a year ago. The U.S. unemployment rate dropped to 3.9 percent.

The total number of unemployed Iowans decreased to 57,900 in December, down 3,800 from November.

The total number of working Iowans increased to 1,604,800 in December. This figure is 5,200 higher than November and 45,200 higher than one year ago.

The labor force participation rate increased slightly to 66.9 percent.

“Growth and recovery continue throughout Iowa, with positive trends across many sectors of our state’s economy,” said Beth Townsend, Director of Iowa Workforce Development. “More than 45,000 Iowans joined the employed last year as Iowa reignited its focus on job growth and getting citizens back to work. We intend to build on this momentum this year by using our Reemployment Case Management and other improvements to help more and more Iowans find new careers in 2022.”

Seasonally Adjusted Nonfarm Employment

Iowa establishments added 11,700 jobs in December, ending the year on a high note with job gains in each of the last four months. Additionally, firms showed signs of gaining momentum in the second half of the year with 29,200 jobs added in the final six months. The December gain did include striking manufacturing workers returning to the production lines following a corresponding drop in durable goods production in November. Private industries were responsible for all of the jobs added this month, as government was unchanged versus last month but has added 7,100 jobs since last December.

Manufacturing added the most jobs in December (+6,100) as strikers returned to work. Virtually all of the movement was within durable goods, although nondurable goods factories added 100 jobs. Construction advanced for the second straight month and has now risen by 2,000 jobs since October. This sector has generally trended down throughout the year, but gains were seen over the past six months. Both wholesale and retail trade advanced again, with 2,300 jobs combined added in December. Both sectors have provided strong evidence that consumers and businesses are increasing demand for goods, with both industries steadily advancing since May and adding 14,000 jobs. Smaller sector gains in December included accommodations and food services (+1,000) and other services (+600). Job losses were light this month and included professional, scientific, and technical services (-500) and finance and insurance (-400). This month’s decline marks the third consecutive decline for this sector.

Annually, total nonfarm employment increased by 41,200 jobs over the past 12 months. Leisure and hospitality continued their recovery in December and finished the year up 19,600 jobs or 16.7 percent, easily the highest of any super sector. Manufacturing is up 6,500 jobs with healthy growth in both durable and non-durable goods industries. Retail trade has been lifted by strong hiring in 2021 and has helped fuel a gain of 5,600 jobs in trade, transportation, and utilities. Losses have occurred in administrative and waste management industries (-1,800) and construction (-1,600).

MEDIA ALERT:  Local data for December 2021 is available on the IWD website. Statewide and local data for January 2022 will be released on Monday, March 14, 2022.
 

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