DES MOINES, IOWA (June 15, 2023) — Iowa’s seasonally adjusted unemployment rate held level at 2.7 percent in May as 6,400 new workers joined the labor force. In comparison, the US unemployment rate increased to 3.7 percent.
Iowa’s labor-force participation rate increased to 68.5 percent in May, up from 68.3 percent in April. The number of unemployed Iowans decreased to 46,300 in May from 46,800 in April.
The total number of working Iowans grew to 1,688,600 in May. This figure is 6,900 higher than April and 11,400 higher than one year ago.
“May was yet another month where large numbers of Iowans reentered the workforce and quickly found jobs,” said Beth Townsend, Director of Iowa Workforce Development. “Across Iowa, businesses continue looking for the workers they need to help our state prosper and grow. IWD serves as a connecting-point enabling workers and employers to capitalize on the opportunities available in Iowa.”
Seasonally Adjusted Nonfarm Employment
Despite the labor-force growth measured by surveying households, total non-farm employment in Iowa decreased slightly in May (-200), according to a separate survey of Iowa businesses. Employment now rests at 1,596,400 jobs. Goods-producing sector-losses outpaced service-sector gains this month, which (after revisions) is the first drop for total non-farm employment since November 2022. While private sectors decreased by 500 jobs overall, government added 300 jobs, and now rests 5,500 jobs higher than last May.
Manufacturing shed 1,400 jobs in May to lead all sectors. This is the second loss for this sector this year, and losses were evident in both durable goods (-500) and nondurable-goods factories (-900). Many of the jobs lost were related to animal slaughtering and processing (-300). This loss ends a string of strong hiring over the past two months, which saw 3,400 jobs gained since February.
Retail trade was the only other substantial loss since April (-900). This drop breaks a string of five consecutive increases that saw 3,300 jobs added since November. All other sector losses were minor and included leisure and hospitality (-200) and professional and business services (-200). Alternatively, job gains in May were led by education and health services (+900).
Education fueled most of the growth which may partially be the result of schools extending their school year later than usual this month. Other services also added jobs in May (+600). Hiring was noticeable within both repair-shops and among civil and social organizations. This month’s increase helps partially offset a sizeable loss in April. Transportation, warehousing, and utilities also advanced (+600). This sector has been trending down steadily over the past few months, and May’s increase was the first since September. Wholesale trade added 400 jobs and has now increased in each of the last five months. This sector is up 1,900 jobs since December.
Annually, total non-farm employment is now up 31,400 jobs. Education and health care has gained the most jobs (+11,600). Health-care and social assistance has advanced the most (+6,200) and has generally trended up since March of last year. Leisure and hospitality are up 6,100 jobs with most of the gains stemming from accommodations and food-service hiring (+4,500). Construction remains up 4,200 jobs annually despite little hiring versus last month. This sector has pared 1,500 jobs since January.
Visit iowalmi.gov for more information about current and historical data, labor force data, non-farm employment, hours, earnings, and jobless benefits by county.
