Iowa Workforce Development Communications
For Immediate Release
Date: May 18, 2023
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: communications@iwd.iowa.gov

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Iowa’s Unemployment Rate Decreases to 2.7 Percent in April

Labor Force Participation Increases Again


DES MOINES, IOWA – Iowa’s seasonally adjusted unemployment rate dropped to 2.7 percent in April from 2.8 percent in March while the state’s labor force added 4,300 new workers. The total number of Iowans with jobs increased to 1,681,400 in April, up 5,800 from the month before.

In comparison, the U.S. unemployment rate dropped to 3.4 percent in March.

Iowa’s labor force participation rate increased to 68.3 percent, up from 68.2 percent last month. The number of unemployed Iowans decreased to 46,800 in April from 48,300 in March.

“Iowa continues to have a strong labor market, and fantastic opportunities remain for those seeking jobs,” said Beth Townsend, Director of Iowa Workforce Development. “Manufacturing, health care, and retail grew significantly in April despite the external pressures of high inflation and rising interest rates that were felt in other industries. Iowa is the land of opportunity, and IWD can help make connections between workers and employers looking for help.”

Seasonally Adjusted Nonfarm Employment

A survey of Iowa businesses (separate from the survey of individuals used to create the unemployment rate) showed that Iowa establishments shed a slight 300 jobs between March and April, lowering total nonfarm employment to 1,592,800 jobs. This was the first loss since November 2022. Private services showed some weakness in April (-1,800 jobs), mostly within professional and business services. These losses were partially offset by gains in goods-producing establishments. Government gained 600 jobs.

Manufacturing added the most jobs in April (+1,400). Many of the jobs gained were within nondurable goods factories (+900) with much of the hiring being in animal slaughtering and processing. Durable goods factories increased by 500 jobs, with metal product production helping drive much of this advancement. This industry has fared well relative to last year, along with wood product production. Retail added 800 jobs in April and helped fuel a gain of 1,200 jobs in trade, transportation, and utilities. This gain is now the fifth consecutive for retail. Wholesale trade advanced by 600 with both durable and nondurable goods distributors showing improvement over March. Health care and social assistance gained 800 jobs in April following an increase of 900 in March. Aside from two minor losses in February and November, this sector has trended up since March 2022 with 6,900 jobs gained over the last 13 months. On the flip side, job losses were largest in professional and business services in April (-1,600). These losses were fueled by losses in administrative support, waste management, and remediation services (-1,100). This industry has shown some signs of weakness with losses in seven of the last eight months, shedding 4,00 jobs over that span. Smaller drops included other services (-1,100) and leisure and hospitality (-900), which saw some loss in arts, entertainment, and recreation, and construction (-400).

Over the past 12 months, education and health care has added the most jobs (+11,100). Health care and social assistance has increased by 6,800 jobs alone (+1,700 over the past two months). Manufacturing has faired well, advancing by 5,200 since last April. Durable good shops have outpaced nondurable goods factories with 3,100 jobs gained. Leisure and hospitality gained 4,400 with all the growth stemming from accommodations and food services. Annual losses are much smaller and concentrated in professional and business services (-1,800), which has suffered from cutbacks in administrative support and waste management services.

 

Employment and Unemployment in Iowa, Seasonally Adjusted Data
           
        Change from
  April March April March April
  2023 2023 2022 2023 2022
           
Civilian labor force 1,728,200 1,723,900 1,717,100 4,300 11,100
Unemployment 46,800 48,300 40,100 -1,500 6,700
Unemployment rate 2.7% 2.8% 2.3% -0.1 0.4
Employment 1,681,400 1,675,600 1,677,000 5,800 4,400
Labor Force Participation Rate 68.3% 68.2% 68.3% 0.1 0.0
           
U.S. unemployment rate 3.4% 3.5% 3.6% -0.1 -0.2
           
Nonfarm Employment in Iowa, Seasonally Adjusted Data
           
Total Nonfarm Employment 1,592,800 1,593,100 1,566,500 -300 26,300
Mining 2,300 2,400 2,300 -100 0
Construction 83,700 84,100 81,000 -400 2,700
Manufacturing 228,200 226,800 223,000 1,400 5,200
Trade, transportation and utilities 313,500 312,300 314,100 1,200 -600
Information 19,000 19,100 19,000 -100 0
Financial activities 108,900 109,000 108,700 -100 200
Professional and business services 144,000 145,600 145,800 -1,600 -1,800
Education and health services 236,300 235,500 225,200 800 11,100
Leisure and hospitality 140,100 141,000 135,700 -900 4,400
Other services 55,600 56,700 55,600 -1,100 0
Government 261,200 260,600 256,100 600 5,100
(above data subject to revision)          
Unemployment Insurance Claims for Iowa
           
        % Change from
  April March April March April
  2023 2023 2022 2023 2022
           
Initial claims 5,839 7,744 5,290 -24.6% 10.4%
Continued claims          
     Benefit recipients 14,090 24,771 15,863 -43.1% -11.2%
     Weeks paid 34,839 89,885 42,720 -61.2% -18.4%
     Amount paid $16,667,625 $44,456,467 $19,837,409 -62.5% -16.0%


MEDIA ALERT:  Local data for April 2023 will be posted to the IWD website on Tuesday, May 23, 2023.  Statewide data for May 2023 will be released on Thursday, June 15, 2023. Visit www.iowalmi.gov for more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.

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