Iowa’s Unemployment Rate Holds at 3.7 Percent in July

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Iowa’s seasonally adjusted unemployment rate held steady at 3.7 percent in July. Iowa’s jobless rate was 3.1 percent one year ago. The U.S. unemployment rate increased to 4.2 percent in July.

The total number of unemployed Iowans increased to 64,900 in July from 63,700 in June.

The total number of working Iowans increased to 1,672,600 in July. This figure is 600 higher than June and 11,000 higher than one year ago. Meanwhile, Iowa’s labor force participation rate held steady at 67.4 percent.

“Iowa’s economy in July saw the unemployment rate hold steady. Six hundred more Iowans were employed than the previous month, and businesses added several hundred jobs,” said Beth Townsend, Executive Director of Iowa Workforce Development. “The fact that 11,000 more Iowans are working than the same time a year ago is a good sign given the job losses we’ve seen in manufacturing. There remain over 50,000 open jobs on IowaWORKS.gov, which means significant opportunities exist for Iowans who are looking for a new or next great job.”

Seasonally Adjusted Nonfarm Employment

Iowa’s business establishments added 300 jobs in July, elevating total nonfarm employment to 1,591,500. This minor increase comes in the wake of losses totaling 7,300 over the prior two months. Private industry was responsible for the gains this month as government (-900) decreased largely at the local level. Following this slight monthly increase, total nonfarm employment is down 3,600 jobs over the past 12 months. Private service industries continue to fuel this loss.

Education services led all sectors in jobs added in July (+2,600). This sector pared 3,300 jobs over the prior two months and has shown little trend annually. Education is down slightly versus last July (-400). Leisure and hospitality added 1,400 jobs. Gains were nearly even between arts, entertainment, and recreation (+600) and accommodations and food services (+800). The gains could be attributed in part to shifting seasonality following weak seasonal hiring in June. Manufacturing increased in both durable and non-durable goods in July, adding a total of 600 jobs. This is the first monthly increase for manufacturing since a gain of 300 jobs in March.

On the other hand, trade industries – retail and wholesale – collectively lost 1,900 jobs since June. Wholesale trade has fared worse with losses outpacing retail by a 2:1 margin in July. This sector has lost 3,800 jobs since February. Professional and business services shed 1,000 jobs. Most of these losses were from administrative support and waste management service industries.

Annually, total nonfarm employment is down 3,600 jobs. Manufacturing leads all sectors in jobs shed (-5,400). Durable goods factories are responsible for virtually all jobs shed. Non-durable goods factory payrolls are little changed since last July. Professional and business services is down 4,900 jobs and leisure and hospitality is down 4,400 jobs despite an increase this month. Health care and social assistance leads all sectors in jobs added (+6,400). Prior to this month, this sector last shed jobs in September. Construction is up 4,700 jobs versus last July. This sector showed little change since June; however, this sector is up 6,500 jobs since January.

Employment and Unemployment in Iowa, Seasonally Adjusted Data

Change from

July

June

July

June

July

2025

2025

2024

2025

2024

Civilian labor force

1,737,500

1,735,700

1,715,400

1,800

22,100

Unemployment

64,900

63,700

53,900

1,200

11,000

Unemployment rate

3.7%

3.7%

3.1%

0.0

0.6

Employment

1,672,600

1,672,000

1,661,600

600

11,000

Labor Force Participation Rate

67.4%

67.4%

67.0%

0.0

0.4

U.S. unemployment rate

4.2%

4.1%

4.2%

0.1

0.0

Nonfarm Employment in Iowa, Seasonally Adjusted Data

Total Nonfarm Employment

1,591,500

1,591,200

1,595,100

300

-3,600

Mining

2,100

2,100

2,300

0

-200

Construction

89,100

89,100

84,400

0

4,700

Manufacturing

216,300

215,700

221,700

600

-5,400

Trade, transportation and utilities

309,100

310,300

312,500

-1,200

-3,400

Information

18,000

18,100

17,900

-100

100

Financial activities

103,800

104,600

106,000

-800

-2,200

Professional and business services

140,800

141,800

145,700

-1,000

-4,900

Education and health services (private)

246,400

244,300

240,400

2,100

6,000

Leisure and hospitality

139,500

138,100

143,900

1,400

-4,400

Other services

57,100

56,900

55,600

200

1,500

Government*

269,300

270,200

264,700

-900

4,600

* includes education and health services (public)

Data Subject to Revision

Unemployment Insurance Claims for Iowa

% Change from

July

June

July

June

July

2025

2025

2024

2025

2024

Initial claims

9,494

10,350

11,523

-8.3%

-17.6%

Continued claims

     Benefit recipients

13,830

11,328

16,430

22.1%

-15.8%

     Weeks paid

39,670

34,115

46,487

16.3%

-14.7%

     Amount paid

$20,011,763

$17,333,493

$22,972,554

15.5%

-12.9%

MEDIA ALERT: Local data for July 2025 will be posted to the IWD website on Tuesday, August 19, 2025. Statewide data for August 2025 will be released on Thursday, September 18, 2025.

Visit iowalmi.gov for more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.