Iowa’s seasonally adjusted unemployment rate rose slightly to 3.6 percent in May, up from 3.5 percent in April, according to data released this (Thursday) morning by Iowa Workforce Development (IWD). The state’s labor force participation rate increased to 67.3 percent last month, and the total number of Iowans working grew to 1.669 million. However, the gains were not enough to offset a 1,700-person increase in the unemployed tally from April to May, which now stands at 62,400. IWD Director Beth Townsend says, “Iowans continued to rejoin the labor force in May, with nearly 4,000 people who were previously on the sidelines coming back to launch their search for a new career.” Total non-farm employment fell by 5,200 jobs in May, led by losses in the professional and business services, manufacturing, and financial industries. Mining and government were the only non-farm sectors to see job growth in May. The U.S. unemployment rate held steady at 4.2 percent last month, more than 0.5 points higher than Iowa’s rate. The complete May 2025 report from IWD is available with this story on our website. Local county-by-county figures are slated for release early next week.
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