(Des Moines) Iowa’s seasonally adjusted unemployment rate climbed to 3.1% in November, while the state’s labor force participation rate increased to 66.3% due to a strong influx of new workers. In comparison, the national unemployment rate rose to 4.2% for the same month.
“The highlight of November’s report is the addition of 1,600 Iowans to the labor force in search of work,” said Beth Townsend, Executive Director of Iowa Workforce Development. “This is a positive sign for Iowa’s economic stability and growth, and for employers facing over 50,000 job openings. Now that the election is behind us, we anticipate more hiring, a continued return of Iowans to the workforce, and broader economic growth.”
The increase in the labor force also led to a rise in unemployed Iowans, from 51,000 in October to 53,000 in November.
The number of employed Iowans dipped slightly to 1,632,600 in November, which is 400 fewer than in October and 20,900 less than the same time last year.
Iowa employers added 400 nonfarm jobs in November, bringing total nonfarm employment to 1,599,300. This marks the first monthly job gain since June, driven primarily by hiring in public schools, which accounted for the bulk of the 1,200 local government jobs added. Gains were also seen in leisure and hospitality and manufacturing, though they were offset by declines in professional and business services and trade and transportation.
Overall, private sector employment dropped by 1,100 jobs in November, while government employment rose by 1,500, including federal, state, and local jobs across schools, universities, and public hospitals.
- Leisure and Hospitality added 700 jobs, primarily in arts, entertainment, and recreation. However, accommodations and food services posted a slight decrease of 200 jobs.
- Manufacturing gained 500 jobs, with hiring concentrated in food production and animal processing.
- Professional and Business Services experienced the largest private-sector job loss, shedding 1,200 positions, particularly in administrative support and waste management (-500 jobs).
- Trade and Transportation saw a decrease of 700 jobs, with losses split between retail trade and transportation and warehousing.
Compared to November 2022, total nonfarm employment increased by 4,000 jobs, supported by growth in private service industries and government employment.
- Health Care and Social Assistance led job growth with an annual gain of 4,900 jobs, including 3,600 in health care alone.
- Leisure and Hospitality added 4,600 jobs over the year, with notable increases in accommodations, food services, and arts, entertainment, and recreation.
- Manufacturing experienced the largest annual decline, losing 5,200 jobs, mostly in nondurable goods production.
- Professional and Business Services shed 3,100 jobs, with administrative support and waste management accounting for 1,900 of those losses.
Iowa’s November labor force and employment figures highlight both opportunities and challenges as the state continues its economic recovery.
