DES MOINES, IOWA (December 11, 2025) — Iowa’s seasonally-adjusted unemployment rate decreased to 3.7 percent in September. The state’s jobless rate was 3.3 percent one year ago. The US unemployment rate rose to 4.4 percent in September.
This is the most recent Iowa data available following the federal government shutdown. Compared to last year, Iowa in September 2025 had more employed citizens, a higher labor-force participation rate, 3,700 more jobs, and 25 percent fewer new unemployment claims than in September 2024.
IWD continues to work with federal partners on timelines for the remainder of the delayed data releases.
Non-farm jobs, labor force, and unemployment data for November and October (jobs only) will be published on January 7, 2026, with local areas to follow on January 16.
The total number of unemployed Iowans decreased to 64,900 in September from 65,800 in August.
The total number of working Iowans increased to 1,676,000 in September. This figure was 2,600 higher than August and 16,300 higher than one year ago. The labor force participation rate remained at 67.5 percent.
Seasonally Adjusted Nonfarm Employment
Iowa establishments added 3,700 jobs in September, raising total nonfarm employment up to 1,598,300.
This increase follows a similar gain in August of 3,600 jobs. While last month’s gains were fueled by trade, this month’s gain was largely the result of both public and private schools hiring more staff than expected as classes resumed. Additionally, goods-producing industries also fared well in September, gaining 1,900 jobs combined. This increase puts total nonfarm employment back up slightly relative to last year (+3,700).
Within private industries, construction added the most jobs in September (+1,300). This gain followed small losses in July and August. Specialty-trade contractors were responsible for much of the gain. Retail trade continued to add jobs in September (+1,200). This sector has increased by 2,700 jobs since May.
Manufacturing gained 600 jobs, with durable goods producers responsible for most of the increase. Job losses were limited to just a few sectors. Health-care and social assistance continued to lower staffing levels in September (-1,500). This sector pared 3,900 jobs over the previous three months. These losses have been evident in virtually all industries related to health care and social assistance.
Compared to the prior twelve months, total nonfarm employment is up 3,700 jobs. Private industry is down slightly since last September (-600). Local government increased by 3,900 jobs. This hiring was primarily at K-12 schools (+3,900). Among private industry, construction has added the most jobs annually (+5,500).
Despite recent losses, health-care, and social assistance is up 3,000 jobs followed by other services, up 1,600 jobs versus last year. Conversely, manufacturing still leads all sectors in terms of jobs lost (-4,100).
This loss is due to cutbacks at durable goods factories. Non-durable goods production, including food production, are up slightly versus last year. Administrative support and waste management industries are down 3,700 jobs. Leisure and hospitality combined trails last year’s mark by 2,500 jobs.
Visit iowalmi.gov for more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.
