Iowa’s unemployment rate grew to 3.7 percent in June, despite continued growth in the state’s labor force, according to data released this (Thursday) morning by Iowa Workforce Development (IWD). The state’s labor force participation rate climbed to 67.4 percent with 3,900 more Iowans entering the workforce, even as the unemployment rate edged up 0.1 percentage points from 3.6 percent in May. The number of employed Iowans rose to 1,671,800, up 2,700 from May and 8,800 higher than a year ago. Unemployment also rose slightly to 63,700. IWD Director Beth Townsend says, “More Iowans joined the workforce in June, increasing the state’s labor force by 3,900, with significant participation increases among women 45 and older. Healthcare and construction accounted for more than 3,700 of the new jobs following a trend for both industries in 2025. With over 51,000 jobs posted on IowaWORKS.gov, anyone looking for a new or better job remains in a good position to find one.” Iowa’s nonfarm employment fell by 2,700 jobs in June, driven by declines in leisure and hospitality, manufacturing, and administrative services. However, gains in health care and construction offset the losses in the nonfarm sectors for the total economy, including farm jobs. Compared to last year, health care and social assistance added 7,500 jobs, and construction is up 3,700, while manufacturing, leisure, and hospitality lost 6,700 jobs. The U.S. unemployment rate dropped to 4.1 percent in June from 4.2 percent the previous month. County-by-county figures are slated for release early next week. A more in-depth breakdown of Iowa’s June 2025 figures is included below.
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