DES MOINES, IOWA (September 17, 2026) — Iowa’s seasonally-adjusted unemployment rate remained at 3.2 percent in August, steady for the fourth consecutive month and down from a jobless rate of 3.5 percent one year ago. The US unemployment rate also held steady at 4.1 percent.
The total number of unemployed Iowans was 54,700 in August, unchanged from July.
The total number of working Iowans decreased to 1,669,600 in August, largely due to Iowa workers leaving the workforce for retirement. The employed figure is 2,600 lower than July and 7,500 lower than one year ago. The labor force participation rate fell to 67.0 percent in August from 67.1 percent in July.
“The August report shows a return to job growth, led by 1,300 new manufacturing jobs and significant increases in hiring in health-care and leisure and hospitality,” said Beth Townsend, Executive Director of Iowa Workforce Development.
“The people who left the workforce primarily did so due to retirement. Iowa had the third-highest labor force participation rate in the country in July, up from seventh-highest during the same month last year.
“Meanwhile, Iowa’s historically low level of unemployment claims has led to a $2.1 billion balance in the trust fund and allowed us to maintain the lowest possible tax rates for employers in 2027.”
Seasonally Adjusted Nonfarm Employment
Iowa establishments added 2,400 jobs in August, raising total nonfarm employment to 1,585,800 jobs. This gain helps offset a loss of 2,800 jobs in July. Firms involved with goods production, primarily construction, and manufacturing fueled much of this gain. Private-service industry was unchanged from July; government added 500 jobs between state (200) and local (300) governments. Following this month’s gain, total nonfarm employment is up 700 jobs annually.
Manufacturing added the most jobs in August (+1,300). Most of the hiring was in durable-goods factories (+900). Jobs were added within machinery and wood-product production. Nondurable goods firms also gained jobs (+400) following a gain of 300 in July. Accommodation and food services increased by 1,000 jobs. This gain was fueled by hiring in drinking places and fast-food restaurants. Health-care and social assistance continued to trend upward, gaining 700 jobs in August and 2,400 jobs over the past three months.
As far as job losses go, professional and business services shed 1,000 jobs. Most of these losses were in administrative support and waste management. This sector has dropped 4,000 jobs since January.
Transportation and warehousing shed 900 jobs. This was the fourth consecutive decline for this sector equating to 1,600 jobs lost.
Compared to last August, health-care, and social assistance have gained the most jobs (+5,700). This sector continues to climb and has been positive since 2021. Construction industries have added 3,200 jobs. This sector has only shed jobs once since December. In terms of losses, trade and transportation industries have shed the most jobs (-5,200). Transportation leads all sectors with 3,300 jobs pared. Trade industries, wholesale, and retail are down a combined 1,900 jobs. Arts, entertainment, and recreation industries have lost 2,200 jobs over the past twelve months.
Visit iowalmi.gov for more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.
